Egypt loses $7 billion in revenue due to Houthi attacks in Suez Canal

Houthi vessels surround a commercial ship in the Red Sea | Photo: Reuters

Egypt has lost $7 billion in Suez Canal revenue so far this year, President Abdel Fattah al-Sisi said, blaming the Red Sea crisis and regional challenges.

According to Reuters, Egypt's revenue from the Suez Canal has decreased this year compared to 2023. The country's president said in a statement that revenue from this has decreased by more than 60 percent in 2024. However, he did not give any details on this matter.

Yemen's Houthi rebels have launched nearly 100 attacks on ships in the Red Sea since November, in a show of solidarity with the Palestinians amid a year-long Israeli offensive in Gaza.

The Suez Canal is a waterway that connects the Red Sea with the Mediterranean Sea via the Indian Ocean. This canal is very important for international trade. Asian trade with European countries depends largely on this waterway. The revenue that Egypt receives from the Suez Canal is one of the country's main sources of foreign exchange earnings.

However, since the attacks on ships in the Red Sea began, shipping companies have been sending their ships around the southern tip of Africa and into the Atlantic Ocean. Due to the long distance, transporting goods takes longer and costs more. 

As a result, goods are becoming more expensive, and on the other hand, there are delays in delivering goods to the market.