Egypt's revenues from the Suez Canal dropped by nearly two-thirds last year, officials said, attributing this sharp decline to regional tensions and wars in the Middle East, which have affected traffic through this vital waterway.
The canal is a major source of foreign currency for the Egyptian government, with around 10% of global trade passing through it in recent years.
The Suez Canal Authority, which manages the waterway, announced that the canal generated an annual revenue of $3.991 billion in 2024, down from the historic record of $10.25 billion achieved in 2023, according to a statement published on its Facebook page.
Traffic through the canal has been significantly disrupted after Houthi rebels from Yemen, backed by Iran, began threatening maritime trade and targeting ships traveling to Israel via the Suez Canal to pressure Israel to end the Gaza war, which began on October 7, 2023.
Between November 2023 and January 2024, the Houthis targeted more than 100 merchant vessels using missiles and drones, sinking two ships and killing four sailors. The rebels insisted that attacks would continue as long as the wars persisted, devastating maritime transport in the region.
According to the Egyptian Canal Authority, only 13,213 ships transited the canal in 2024, a 50% decrease compared to the number of ships in 2023, when over 26,000 ships used the canal.
The head of the canal authority, Osama Rabie, stated that the attacks are testing the region but do not prevent Egypt from continuing to provide its navigation and maritime services through the Suez Canal, reports Africanews.
The International Monetary Fund reported in March 2024 that trade through the Suez Canal had dropped by 50% in the first two months of the year compared to the previous year, citing attacks on vessels in the Red Sea.
