Suez Canal revenue down more than 50% due to Red Sea tensions: Madbouly

Ahram Online , Monday 25 Mar 2024

Prime Minister Mostafa Madbouly said the annual revenue of Egypt’s Suez Canal declined by more than 50 percent due to the Red Sea conflict, noting that Egypt has borne the brunt of these events.

Suez Canal


During the 2022/2023 fiscal year, Suez Canal revenues hit a record-breaking $9.4 billion. Canal revenues are a key source of foreign currency for the country alongside tourism and remittances.

Madbouly made his remarks while speaking on the repercussions of successive regional and international crises on the Egyptian economy in a meeting with a US congressional delegation in Cairo on Monday.

He said Egypt had displayed “very positive” performance indicators before the outbreak of the pandemic, the Russian-Ukrainian war, and the ongoing war in the Gaza Strip and its developments in the Red Sea.

The Houthis, who control much of Yemen but are not recognized internationally, have repeatedly targeted Israel-linked vessels near the strategic Bab Al-Mandeb Strait in the Red Sea to pressure Israel over its deadly war on the Gaza Strip.

The government, he said, is working hard to maintain the solidity and flexibility of the national economy in the face of such external shocks.

This includes implementing structural reforms aimed at boosting production, increasing exports, and facilitating the expansion of the private sector’s contributions to economic activity.

Madbouly asserted that the recently reached $8 billion deal with the International Monetary Fund (IMF) reflects the confidence the major international institution has in the Egyptian economy.

Madbouly emphasized to the congressional delegation Egypt’s keenness to continue its strategic partnership with the US, highlighting areas of cooperation between the two countries.

He said Egypt pays considerable attention to green hydrogen projects and has already concluded numerous international partnerships in this field, including with American companies.

Egypt, Madbouly asserted, aims to export electricity and hydrogen fuel to neighbouring countries, including EU countries.

Madbouly and the US delegation touched upon the developments in the Gaza Strip, stressing the importance of stopping the war.

He also called for increased access to humanitarian aid entering the strip.

He noted that Egypt is open to continuing consultation with the US administration regarding various aspects of the Palestinian crisis out of a shared vision of a just and lasting peace based on the two-state solution.

The US delegation, headed by Chairman of the Ways and Means Committee of the US House Jason Smith, expressed their aspiration for more cooperation between both countries, especially in the economic, trade, and investment fields.

They also praised Egypt’s vital role in dealing with the current crisis in the Gaza Strip.

US Ambassador to Egypt Herro Mustafa Garg also attended the meeting.

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