The statement was issued following a meeting between President Abdel-Fattah El-Sisi and Osama Rabie, chairman of the Suez Canal Authority, where they discussed the impact of regional conditions on navigational traffic in the canal during the current year.

“Egypt lost nearly $7 billion in 2024 due to ongoing events in the Red Sea and Bab el-Mandeb region, which have significantly disrupted navigational traffic through the canal and impacted global trade,” read the statement.

Tensions in the Red Sea have escalated due to the Houthis' recurring attacks on ships linked to Israel, the US, and the UK near the strategic Bab el-Mandeb Strait.

The group, which controls much of Yemen but is not recognized internationally, says the attacks were meant to pressure Israel to end its deadly war on the Gaza Strip.

The attacks have led several shipping companies to divert their ships from the Suez Canal, where 12 percent of global trade used to cross, to the much-longer Cape of Good Hope.

El-Sisi and Rabie also addressed ongoing projects to modernize the canal, including the completion of the southern sector project, to enhance the canal’s global significance and facilitate the passage of larger vessels.

This includes expanding the canal’s navigation channel from kilometre 132 to kilometre 162 and completing the full duplication of the navigation channel from kilometre 122 to kilometre 132.

These projects are expected to “increase shipping volume and expedite vessel movement in both directions,” read the statement.

The president was also briefed on the measures taken by the SCA to modernize the fishing fleet according to international specifications and standards, relying on the latest advanced technological systems.

In this regard, El-Sisi directed to continue working on completing the canal development projects to provide the best navigational services and enhance the canal's role as a fundamental pillar of the global trade movement.

The Suez Canal, which moves 12 percent of all world trade, is one of the main sources of foreign currency to Egypt alongside tourism and remittances.

The Egyptian Suez Canal links the Red Sea to the Mediterranean, creating the shortest shipping route between Europe and Asia.

It is also connected to the Gulf of Aden by the Bab el-Mandeb strait between Yemen and Djibouti.