El-Sisi’s directives came during a meeting with Prime Minister Mostafa Madbouly and SCA Chairman Osama Rabie, who briefed the president on the impact of the regional conflict on shipping and supply chains. Rabie said the authority has increased preparedness at all work sites while maintaining 24-hour navigational services.
The meeting highlighted the potential risks to global shipping, including bottlenecks near critical waterways such as the Bab El-Mandeb Strait and the Strait of Hormuz, which is currently blocked by the Iranian Revolutionary Guard Council (IRGC) due to the war on Tehran.
The conflict has prompted several global shipping companies, including Maersk, Hapag-Lloyd, and CMA CGM, to suspend Suez Canal transits and reroute their vessels starting 1 March, citing fears of renewed attacks by Yemen's Iran-backed Houthis in the southern Red Sea. Egyptian authorities had hoped for a recovery in traffic after these firms had partially resumed using the canal earlier this year.
Estimates from Cairo had suggested that the disruptions caused by Houthi attacks have cost Egypt roughly $9 billion in potential transit fees, as the rebels targeted international vessels in solidarity with Palestine since the outbreak of Israel's genocidal war on the Gaza Strip in October 2023.
Speaking at the annual Egyptian Family Iftar held at the Air Force House in Cairo on Saturday, El-Sisi revealed that Egypt lost around $10 billion in income from the Suez Canal in recent years, equivalent to about EGP 500 billion.
The ongoing conflict has also affected Egypt’s broader economy. The Egyptian stock index has retreated, and the pound dropped to its lowest level since July.
Analysts say the short-term impact on the broader economy is limited, as revenues from tourism, remittances, non-oil exports, and foreign investment have partially offset Suez losses.
However, they also warn that any sustained disruption at key energy chokepoints, including the Strait of Hormuz, could push global oil prices higher, with knock-on effects for trade routes including the Suez Canal. The strait handles roughly 20 million barrels of oil per day—around one-fifth of globally traded oil—along with significant liquefied natural gas shipments.
El-Sisi also reviewed progress on domestic SCA projects, including the Red Sea Shipyard Development, the Tourist Yacht Factory, the Rizk Fishing Vessel Construction, and the River Bus Manufacturing initiatives. He emphasized that all projects should meet their timelines and adhere to global standards to ensure quality.
The president was briefed on efforts to integrate digitalization into the SCA’s operations, including expanding electronic applications. He stressed that technology should improve governance, enhance efficiency, and rationalize spending.
El-Sisi also called for continued cooperation with international companies, local industry development, and the promotion of SCA products in global markets.
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