Egyptian President Abdel Fattah el-Sisi announced a staggering loss of approximately $6 billion in Suez Canal revenues due to the ongoing Israeli war in Gaza and escalating regional tensions. During a graduation ceremony for police academy students, Sisi reported that the canal's revenues have dropped between 50% and 60% over the past eight months, highlighting the significant impact of geopolitical conflicts on Egypt's economy.
The Suez Canal has been facing challenges as shipping companies increasingly reroute their vessels to avoid potential threats from Houthi rebels in the Red Sea. This shift has contributed to a reported 23.4% decline in revenues for the fiscal year ending June 2024, with earnings plummeting from $9.4 billion to $7.2 billion.
Sisi emphasized the importance of maintaining stability amid dangerous developments at Egypt's borders, particularly with ongoing conflicts in Gaza, Sudan, and Libya. He reassured citizens that the government is managing the situation to safeguard national security and prevent further escalation.
The Egyptian government is also navigating a broader economic crisis, having recently expanded its agreement with the International Monetary Fund for $8 billion in support, alongside various international financing pledges. This financial strategy comes at a time when the country is grappling with a severe dollar scarcity.
