Suez Canal revenues witnessed a decline of 50% due to Red Sea tensions, Minister of Planning and Economic Development, Hala El-Said announced in the special meeting of the World Economic Forum (WEF).

Suez Canal revenues amounted to $10 billion in 2023, but they witnessed a sharp decline in 2024, after a large number of ships diverted to the Cape of Good Hope to avoid the Red Sea attacks.

El-Said added that this will affect Egypt’s foreign currency revenues and raise food and energy prices.

Furthermore, the minister has affirmed Egypt's possession of the necessary infrastructure to enable international enterprises to penetrate markets across Africa, the Middle East, and Europe.

It was emphasized that Egypt is actively overseeing the execution of 80 port initiatives, with investments amounting to EGP 129 billion, in collaboration with 100 private sector firms.

Egypt aims for the private sector’s share of the national economy to reach 65% by 2026, noting that the percentage is currently approaching approximately 42%, and will reach 50% in FY2024/2025, minister El-Said added.

Earlier in February, the Chairman of the Suez Canal Authority, Osama Rabie, indicated that revenues declined by 46% in January 2024, to record $428 million, compared to $804 million in January 2023.

Rabie explained that ship transit traffic declined by 30% in the period from 1 to 11 January on an annual basis.