Egypt's Suez Canal intends to establish investment fund with initial capital of LE2B

CAIRO - 2 February 2022: Osama Rabie, head of the Suez Canal Authority, revealed the authority's intention to establish an investment fund with an initial capital of LE 2 billion.

Osama Rabie said in a TV interview on Tuesday night, that the investment fund will start its work early next month.

Rabie expected that the revenues of the Suez Canal in the current month of February will exceed what it achieved in January, when the revenues of the canal amounted to $544.7 million.

He explained that the factors that helped increase in January, especially the recovery of the shipping sector, support more growth in the coming months, as well as the Canal’s flexible marketing policies.

According to a statement issued by the Suez Canal Authority,the canal recorded the crossing of 1,774 ships from both directions last January, compared to 1,594 ships transiting a year ago, with a total net tonnage of 106.1 million tons, compared to 104.2 million tons in January 2021.

Rabie confirmed that the Canal’s studies indicate that the decision to raise transit fees by 6 percent, which began to be implemented as of Tuesday, will increase the Canal’s revenues during 2022 by more than $400 million above the targeted $7 billion.

Last Wednesday, the Egyptian government approved a draft law to establish a fund under the name "Suez Canal Authority Fund", so that it has an independent legal personality, and its headquarters will be in the Ismailia governorate, and the fund's board of directors may establish branches or offices for it within the Arab Republic of Egypt.

The fund aims to contribute to the sustainable economic development of the Suez Canal Authority facility and its development through the optimal use of its funds in accordance with the best international standards and rules to maximize its value, and to confront crises and emergency situations that occur as a result of any exceptional circumstances, force majeure or bad economic conditions.