Red Sea tensions cost Egypt $7bn as Suez Canal revenues fall by over 60%

Egypt’s Suez Canal has seen its revenues nosedive by more than 60 percent in 2024 compared to the previous year, amounting to a staggering $7 billion loss, according to a statement released on Thursday.

The amount marks a drop of more than 60 per cent annually, as attacks in the Red Sea have impeded navigation and global trade.

The figures emerged following a meeting on Thursday between the Egyptian president Abdel Fattah El-Sisi and Admiral Ossama Rabiee, chairman and managing director of the Suez Canal Authority (SCA).

The Egyptian President was briefed about the measures taken by the Suez Canal Authority (SCA) to address the challenges arising from the situation in the Red Sea and the Bab-el-Mandeb strait.

Sisi emphasized the importance of continuing the development projects for the canal to provide the best maritime services and strengthen its role as a cornerstone of global trade.

The meeting also touched on the ongoing projects to modernize the Suez Canal’s navigation route to enhance its value and role in global supply chains and trade.

These projects include the completion of the whole of southern sector project and the expansion of the navigation route from kilometer 132 to kilometer 162 to allow for the passage of giant vessels.

This is in addition to the completion of the full duplication of the navigation channel from kilometre 122 to kilometre 132, which will help increase cargo volume and speed up the movement of vessels in both directions.

The President was also briefed on the measures taken by the Suez Canal Authority to address the challenges in the Red Sea and Bab el-Mandeb, as well as ongoing efforts to modernize the fishing fleet according to international standards, using the latest advanced technological systems.

President El-Sisi gave directives to continue the completion of the Canal development projects, with the aim of providing the best maritime services and reinforcing the Canal’s role as a key pillar in global trade, a spokesman for the presidency Ambassador Mohamed El-Shennawy said.

The President also gave directives to continue the modernization of the Egyptian fishing fleet in line with the latest international standards to strengthen this vital sector’s role in serving the national economy.