Suez Canal loses $800 million in revenues monthly amid regional unrest, says Egypt president

Egyptian President Abdel Fattah El-Sisi recently stated that Egypt is facing a loss of approximately $800 million per month in Suez Canal revenue due to ongoing regional instability. The Egyptian Presidency issued a statement indicating that Sisi emphasized Egypt's steady and prudent progress over the past 15 years, overcoming global economic crises and other significant challenges.

Despite facing numerous challenges, Sisi expressed that the Egyptian economy is showing positive signs. He pointed out the recent approval by the International Monetary Fund (IMF) to disburse a new loan to Egypt. This statement reflects the progress Egypt has made in its economic development efforts.

Egypt recently secured a $1.2 billion loan from the IMF after completing the fourth review of its economic reform program. This loan was provided under the Extended Fund Facility, bringing Egypt's total funding under the program to approximately $3.2 billion. Furthermore, the IMF approved a $1.3 billion Resilience and Sustainability Facility to support Egypt's climate-related reforms.

According to the European External Action Service (EEAS), Egypt will also receive a $94.3 million loan from the European Union (EU) and the European Investment Bank as part of the Egyptian Food Resilience project. EU Commissioner for Demography and Foresight, Dubravka Šuica, announced this during her visit to Egypt earlier this month, where she met with President Abdel Fattah El-Sisi and other senior Egyptian officials.

Last year, Admiral Osama Rabie, Chairman and Managing Director of the Suez Canal Authority, revealed that canal revenues decreased by more than 60% year-on-year in 2024 due to the negative impact of events in the Red Sea and the Bab-el-Mandeb Strait on shipping traffic through the canal and the sustainability of global trade. This signifies that Egypt lost nearly $7 billion in 2024.

In a meeting with President Sisi last year, Rabie discussed the ongoing Suez Canal waterway modernization projects aimed at enhancing its value and role in global supply chains and trade. These projects include the completion of the entire southern sector project, expanding the waterway from 132 kilometers to 162 kilometers to accommodate the passage of mega-ships.

The upgrade of the Suez Canal also includes the completion of the full doubling of the waterway from 122 kilometers to 132 kilometers, which will help increase cargo volumes and expedite the passage of ships in both directions.