Egypt announces loss of about $7 billion in Suez Canal revenues this year due to Red Sea events

Egypt announced a loss of nearly $7 billion in Suez Canal revenues during the current year, affected by the events taking place in the Red Sea and Bab al-Mandab, in reference to the attacks launched by the Iranian-backed Houthi militia on international shipping vessels.

The Egyptian presidency said in a statement on Thursday that President Abdel Fattah El-Sisi held a meeting with Lieutenant General Osama Rabie, Chairman of the Suez Canal Authority, to discuss the impact of regional conditions on navigation in the Suez Canal during the current year, and the measures taken by the authority to confront the effects of challenges in the Red Sea and Bab al-Mandab.

The statement said that Sisi was briefed on the revenues achieved by the canal in 2024, which witnessed a decrease of more than 60% compared to 2023, meaning that Egypt lost nearly $7 billion in 2024, as a result of the current events in the Red Sea and Bab al-Mandab region, which negatively affected the movement of navigation in the canal and the sustainability of global trade.

The statement indicated that the meeting also touched on the ongoing projects to modernize the Suez Canal navigation channel, to enhance its value and role in global supply chains and trade, including the completion of the entire southern sector project, in addition to expanding the navigation channel area from kilometer 132 to kilometer 162, to allow the passage of giant ships, and completing the "full duplication of the canal navigation channel" project from kilometer 122 to kilometer 132, which contributes to increasing the volume of shipping and accelerating the movement of ships in both directions.

The meeting also discussed the efforts made to modernize the fishing fleet according to international specifications and standards, relying on the latest advanced technological systems. In this regard, the Egyptian President directed the continuation of work to complete the Canal development projects, with the aim of providing the best navigational services and enhancing the role of the Canal as a fundamental pillar of global trade movement. He also directed the continuation of modernizing the Egyptian fishing fleet according to the latest international systems and standards to enhance the role of this vital sector in serving the national economy.

Since November of last year, the Iran-backed Houthi militia has been launching drone and missile attacks on cargo ships sailing in the Red Sea, Bab al-Mandab and the Gulf of Aden off the coast of Yemen, saying it is in support of Gaza, which has been subjected to an Israeli war of extermination since October 7, 2023.

These attacks negatively affected shipping, trade and global supply chains, as many companies resorted to longer routes for safety, and also harmed the economies of the Red Sea countries, especially Egypt.