Egyptian Foreign Minister Warns of Economic Impact from Red Sea Escalation
Egyptian Foreign Minister Badr Abdel Aty has expressed grave concerns regarding the escalating tensions in the Red Sea, which he claims have significantly harmed the Egyptian economy. Speaking at a press conference in Kuwait, Abdel Aty highlighted a drastic decline in Suez Canal revenues, attributing this downturn to the ongoing militarization in the region. He described the situation as 'unacceptable' and warned that further escalation could severely disrupt global trade, with Egypt being one of the most affected nations.
The minister pointed out that in solidarity with Gaza, the Houthis in Yemen have been targeting Israeli-linked cargo ships in the Red Sea using missiles and drones. This has led many shipping companies to avoid the Suez Canal, opting instead for the more costly route around the Cape of Good Hope. The situation has prompted Western nations to form an alliance aimed at preventing these attacks, effectively turning the southern Red Sea into a conflict zone.
Abdel Aty emphasized the need for addressing the root causes of the conflict, particularly the ongoing Israeli military actions in Gaza and Lebanon. He stated, 'If there is seriousness in preventing escalation, the roots of the problem must be addressed,' underscoring that stability in the region is crucial for economic recovery and international navigation.
IMF Reports Significant Revenue Loss for Egypt
The International Monetary Fund (IMF) recently reported that tensions in the Red Sea have resulted in a staggering 70% drop in Suez Canal revenues, a vital source of foreign currency for Egypt. The IMF's statement reflects the broader economic challenges facing the region, exacerbated by the ongoing conflicts in Gaza and Israel. The fund warned that the economic outlook for Egypt remains bleak as geopolitical tensions persist, further impacting trade and investment.
Abdel Aty's visit to Kuwait was described as both political and economic, with a focus on enhancing bilateral investments. He expressed pride in Kuwaiti investments in Egypt and hopes for increased financial collaboration between the two nations.
