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Egyptian president says Suez Canal revenues drop by 40-50 percent since Gaza war

Egyptian President Abdel-Fattah al-Sisi said on Monday that the Suez Canal’s revenues have decreased by 40-50 percent since the outbreak of the war on the Gaza Strip and the recent tensions in the Red Sea.

Sisi made the televised remarks during the inauguration of the Egypt Energy Show (EGYPES 2024), which runs on Feb. 19-21 in Cairo, and is themed “Driving Energy Transition, Security, and Decarbonization.”

The shipping corridor used to bring Egypt 10 billion U.S. dollars annually, Sisi said, adding that the state is supposed to pay its financial obligations to development companies and financing institutions.

Meanwhile, Sisi said the challenges facing Egypt and African countries in general include securing energy supplies, achieving energy transition, and reducing emissions, in light of the difficult economic conditions facing the countries of the African continent, as well as the significant rise in the cost of technology.

In January, Osama Rabie, chairman of the Suez Canal Authority, announced a 30 percent drop in ship traffic compared to the same period last year, attributing it to recent Red Sea tensions.

Since the outbreak of the conflict between Israel and Hamas in October last year, the Houthi group in Yemen has repeatedly attacked ships in the Red Sea that have links to Israel.

The United States and Britain launched several airstrikes on Houthi military sites in the Yemeni capital Sanaa and other provinces under the group’s control since January in response to the Houthi attacks in the region.

The Suez Canal, carrying 12 percent of global trade, is a crucial source of foreign currency for Egypt.

Famagusta Gazette