Suez Canal Has Lost About $20 Billion in Revenue, Egypt's Sisi Says

Egyptian President Abdel-Fattah el-Sissi says Egypt has lost approximately $20 billion in Suez Canal revenue in recent years as regional instability disrupted shipping through the strategic waterway.

Egyptian President Abdel-Fattah el-Sissi says regional instability has cost Egypt approximately $20 billion in Suez Canal revenue.

El-Sissi cited the losses during a meeting with government officials, military commanders and governors in late September. Egypt's presidency said the president attributed the roughly $20 billion loss to regional instability affecting the canal.

The Suez Canal is a major source of foreign-currency revenue for Egypt and an important shipping route between Asia and Europe.

Traffic through the canal fell sharply after Houthi attacks on commercial vessels in the Red Sea and Gulf of Aden prompted many shipping companies to reroute vessels around the Cape of Good Hope.

The resulting decline in traffic has weighed heavily on Egypt's finances. Egyptian officials previously reported substantial losses in canal revenue following the Red Sea shipping disruptions.

El-Sissi said the regional turmoil had also contributed to higher oil and essential-commodity prices, adding to pressure on Egypt's economy and government finances.

Egypt's presidency said the country had lost approximately $20 billion in Suez Canal revenue “in recent years” because of regional instability.

The president's figure is a government estimate rather than an independently audited calculation. It should therefore be attributed to el-Sissi and Egyptian authorities.

The disruption has been closely linked to the security situation in the Red Sea and surrounding waters. As shipping companies continue to assess security risks, insurance costs and sailing times, the future recovery of Suez Canal traffic remains uncertain.