Egypt: SCA Fund doesn’t allow foreigners to have control or sovereignty over Suez Canal

CAIRO – 22 December 2022: Defending the draft law of the Egyptian Suez Canal Authority (SCA) Fund, Chairperson of the Authority Osama Rabie affirmed, in a press conference on Thursday, that the bill doesn’t allow foreigners to have control or sovereignty over the Suez Canal.

“The Suez Canal Authority (Fund was subjected to a careful study and does not affect the state's sovereignty […] The Suez Canal belongs to the Egyptians and its assets are untouchable in accordance with the constitution as no assets of the Suez Canal Authority are for sale” Rabie said, adding that the SCA Fund will be observed by the state-owned Central Auditing Organization.

The press conference was held to clarify a set of facts related to the draft law of the Suez Canal Fund after a controversy has been raised recently regarding the fund.

Article 43 of the Egyptian Constitution guarantees Egyptian sovereignty over the Canal and its affiliations. “The state commits to protecting, developing, and maintaining the Suez Canal as an international waterway that it owns. It is also committed to the development of the canal sector as a significant economic pillar,” Article 43 stipulates.

A feasibility study for Fund in facing crises and emergency situations that could affect dollar flows to the Suez Canal has been conducted, Rabie said, mentioning how the country has been impacted by the international crises of the Coronavirus pandemic and the ongoing Russian-Ukrainian war.

The admiral said that fund’s resources will be invested in implementing development projects. In the canal without imposing any additional burdens on the state’s treasury.

The admiral added that the SCA Fund aims to achieve added value to the authority and no money will be taken from the state's budget general for the Fund.

The digging of the Suez Canal is an unprecedented achievement that was done by Egyptians, he said.

“The Suez Canal Authority Fund is an independent entity and doesn’t relate to the Suez Canal's assets,” he continued, noting that the Suez Canal recorded in 2022 unprecedented records to achieve the highest annual transit rate of ships with 23,869 vessels, and the highest annual net tonnage of 1.4 billion, recording the highest annual revenue of $7.9 billion.

For his part, Head of the Supreme Council for Media Regulation (SCMR) Karam Gabr said that President Abdel Fattah El-Sisi was keen to announce the full facts regarding the Suez Canal Authority Fund Law.

Gabr added, in the press conference, that Suez Canal is undoubtedly subjected to Egyptian sovereignty, slamming the phenomenon of false news. “The rumors related to the Suez Canal will not be the last,” he said.

A controversy was raised about the fund saying that the new law of the fund allows the establishment of companies that can buy, rent, or exploit assets of the fund. The New draft law was approved by the House of Representatives on December 19. The Speaker of the parliament Hanafi El Gebali defended the bill, saying “It [the fund] does not include any provisions affecting the Suez Canal because it is one of the state’s public funds.”