President Sisi: Suez Canal revenues plummet by over $6 billion in 8 months

CAIRO – 29 September 2024: President Abdel Fattah El-Sisi has underscored that the Suez Canal has suffered a loss of more than 50-60% of its income, surpassing $6 billion, over the past 7-8 months due to regional disturbances.

Sisi made the statements during the graduation ceremony of the 2024 class of the Police Academy on Sunday.

He expressed understanding of concerns of the Egyptian people regarding the critical regional developments and the potential escalation of conflicts that could impact regional stability.

Nevertheless, the president conveyed a message of reassurance to the citizens regarding the stability of the nation, urging unity in the face of challenges taking place beyond Egypt's southern, eastern, and western borders.

“I assure you that we are fine, and things, by the grace of Allah, are stable, getting better day by day as long as we in Egypt remain united, stable, and determined, all hand in hand,” Sisi said.

“We are keen on managing our affairs in a way that preserves our country and, as much as possible, the region, without getting involved in matters that could affect the security and stability in the region and in our nation,” he added.

Suez Canal losses

The revenues of the Suez Canal have been severely impacted by disruptions in the Red Sea caused by attacks from the Yemeni Houthis on vessels linked to Israel over recent months, as a show of solidarity with the Palestinian people since the outbreak of the Israeli war in Gaza on October 7.

Despite efforts by a United States-led naval coalition to counter these attacks, the Houthi attacks have persisted, prompting thousands of ships to reroute from the Suez Canal through the significantly longer Cape of Good Hope route.

In May, Osama Rabie, Chairman of the Suez Canal Authority (SCA), revealed that the disturbances in the Red Sea led to 3,395 ships diverting to this alternative route, extending their journeys by over 10 days.

During a parliamentary address, Rabie expressed the Suez Canal's anticipation of substantial revenues reaching $9 billion in the fiscal year 2024/25, notwithstanding the considerable setback faced in recent months due to disruptions in the Red Sea.

This target closely approaches the canal's record revenue of $9.4 billion in the fiscal year 2022/23, before the onset of the Israeli war in Gaza.

In a report from May, the United Nations Development Programme (UNDP) estimated a decline in tourism and Suez Canal revenues in Egypt in the fiscal years 2023/24 and 2024/25 by around $9.9 billion in a moderate intensity scenario and $13.7 billion in the event of heightened conflict involving other regional actors.