The war in Gaza, which has resulted in the Houthis responding by attacking Red Sea shipping, has led to a 40-50% reduction of revenues for the Suez Canal. This contrasts with the 2022/2023 fiscal year, when Suez Canal revenues hit a record-breaking $9.4 billion. Canal revenue from fees are paid in dollars, and Egypt already has a shortage of foreign currency, which has now forced it to accept an IMF loan agreement.
Speaking at the inauguration of the seventh edition of Egypt Energy Show (EGYPES 2024), President Abdel Fattah El-Sisi pointed to the decline in canal revenues as one of the major financial challenges the government is facing The President emphasized that Cairo has been diligently attempting to fulfill its commitments, even though they require significant financial resources.
