Egypt’s losses due to the situation in the Red Sea and the resulting decline in maritime activity in the Suez Canal have amounted to more than $6 billion since the beginning of 2024. This data was provided by the country’s president, Abdel Fattah al-Sisi.
“The revenue from the Suez Canal over the last eight months has decreased by approximately 50% to 60%; therefore, the losses we have incurred have exceeded $6 billion.” – Al-Sisi is quoted by the Egyptian portal Al Youm as-Sabia, reports TASS.
The Egyptian leader also noted that Cairo is “extremely concerned about the situation in the region, as the current state of affairs could lead to an even further expansion of the conflict,” however, the Egyptian authorities are “trying to follow a policy that helps maintain stability in the state and throughout the region.”
July 18, head of the Suez Canal Authority Osama Rage stated that Egypt’s revenue from the operation of the canal during the past fiscal year 2023-2024 (ended June 30) decreased by more than 23% and amounted to $7.2 billion. Rabia then indicated that the channel’s financial performance “was very negative.” affected by the tense situation in the southern part of the Red Sea” in connection with attacks by units of the Yemeni rebel movement Ansar Allah (Houthis) against ships passing through this area.
Egypt’s income from the exploitation of the Suez Canal in the last fiscal year (2022-2023) exceeded $10 billion. The financial income from the canal is one of the main items of income in the Egyptian budget and an important source of replenishment of the country’s treasury. dollars. However, since autumn 2023, Egypt has been losing profits from using the canal, as many ships are forced to change their routes for fear of a Houthi attack. Supporters of Ansar Allah, following the escalation of the conflict in the Gaza Strip in October 2023, vowed to attack Israeli territory and said they would not allow ships associated with it to pass through the waters of the Red Sea and the Bab al Strait. -Mandeb even ceases the operation in the Palestinian enclave. Since mid-November 2023, the Houthis have attacked dozens of civilian ships in the Red Sea and the Gulf of Aden.
