The Suez Canal’s revenue has taken a significant hit over the past seven-eight months, due to Israel’s escalating war in the region and its consequences.
President Abdel Fattah al-Sisi announced Sunday that these losses could reach between 50-60 percent of total receipts, potentially amounting to six billion dollars.
Earlier in February, Sisi that Suez Canal revenues had fallen by between 40-50 percent due to tensions in the Red Sea as a result of Huthi attacks made in solidarity with Palestine.
During the inauguration of Egypt Petroleum Show (EGYPES 2024) at the Al Manara International Conference Center in New Cairo, Sisi said at the time that, “The shipping corridor, which used to generate approximately US$10 billion annually, has declined by 40 percent to 50 percent since the beginning of this year.”
The head of the Suez Canal Authority, Osama Rabie, stated in a telephone interview earlier in February with an Egyptian satellite channel that revenues from Suez Canal had declined from US$804 million recorded in January 2023 to $428 million during the same month this year.
Rabie said at the time that the decline rate reached 46 percent, attributing this to the Red Sea crisis.
He pointed out that the number of ships that crossed the canal decreased to 1,362 ships in January, compared to 2,155 ships in the same month last year.
Suez Canal remains fully Egyptian
The Egyptian government back in July refuted an audio clip spread online claiming that the government intends to sell the Suez Canal for a trillion dollars.
The Media Center of the Egyptian Cabinet said that it contacted the Suez Canal Authority (SCA), which denied the news and confirmed that the audio clip is fabricated.
The SCA stressed that the Suez Canal will remain fully owned by the Egyptian state and subject to its sovereignty – whether in its management, operation or maintenance – and the entire staff of the Suez Canal Authority will remain Egyptian citizens.
