Business

Egypt’s Suez Canal Revenues Drop by 40-50% Due to Regional Tensions

In a statement during the 2024 Egypt International Exhibition Center Conference in Cairo, President Abdulfettah es-Sisi disclosed that Egypt’s earnings from the globally significant Suez Canal have declined by 40 to 50 percent. According to the official news agency MENA, President Sisi addressed the impact on the canal’s revenues, attributing the decrease to a combination of factors.

President Sisi stated, “The income from the shipping corridor (Suez Canal), which annually brings in approximately $10 billion to Egypt, has decreased by 40 to 50 percent.” He went on to elaborate on the reasons behind this decline, mentioning, “Egypt has faced the repercussions of the COVID-19 pandemic for two years, followed by the Ukraine-Russia crisis, and subsequently challenges at its borders with Libya and Sudan. Currently, we observe a 40 to 50 percent reduction in the shipping corridor that generates about $10 billion in annual revenue for Egypt, due to the crisis in the Gaza Strip. We are not complaining; we are stating facts.”

The United Nations Conference on Trade and Development (UNCTAD) had previously announced on January 26 that weekly transits through the Suez Canal had decreased by 42 percent in the last two months, citing attacks in the Red Sea as the cause.

The Suez Canal, considered one of the world’s most vital channels, serves as the shortest shipping route between Europe and Asia and is a major source of foreign exchange for Egypt. The recent decline in revenues highlights the significant impact of regional tensions on the country’s economic lifeline.

source: aa.com.tr / prepared by Melisa Beğiç

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