Egypt’s revenue from the Suez Canal fell nearly two-thirds, officials said Wednesday, attributed to regional tensions and wars in the Middle East that affected traffic through critical waterways.
The canal is the main source of Egyptian government’s foreign currency, and in recent years, about 10% of world trade has flowed through waterways.
The Suez Canal Authority said the canal had annual revenue of US$4 billion (€3.5 billion) in 2024, down from its historical heights (€9.1 billion) in 2023, a statement posted on its Facebook page.
Traffic in the canal was severely damaged after Yemen-backed Iran-backed Houthi rebels began threatening maritime trade, and targeted ships traveled to Israel through the Suez Canal, forcing Israel to halt the Gaza war that began on October 7, 2023.
Between November 2023 and January 2024, Houthis targeted 100 merchant ships with missiles and drones, sinking two ships and killing four sailors. The rebels insisted that as long as the war continues and destroys transportation in the area, the attack will continue.
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According to the Egyptian Canal Authority, only 13,213 ships crossed the canal in 2024, with 50% of the ships compared to the number of ships in 2023, when more than 26,000 ships passed by.
Nevertheless, Osama Rabie, head of the Canal Authority, said the attack challenged the region but did not stop Egypt from continuing to provide nautical and maritime services in Suez.
The International Monetary Fund reported in March 2024 that Suez Canal trade fell by 50% in the first two months of the year compared to the previous year, citing attacks on ships in the Red Sea.
Egyptian President Abdel Fattah El-Sissi completed a significant expansion of the Suez Canal in 2015, adding a second transport lane and allowing it to handle some of the world’s largest ships.
The canal connecting the Mediterranean Sea and the Red Sea opened in 1869. It is an important artery of global trade – a key link between oil, gas and cargo. The Canal Authority operates a fleet system that consists of a northbound and a southbound daily.
