Houthi Attacks Lead to 40-50% Drop in Suez Canal Revenues, Says Egyptian President

Cairo: Egyptian President Abdel Fattah El-Sisi revealed that revenues from the Suez Canal have declined by 40 to 50 percent in 2023 due to attacks on shipping by Yemen’s Houthi rebels.

The canal, a crucial source of foreign currency for Egypt amid a financial crisis, has been affected by Houthi attacks in the Gulf of Aden and Red Sea.

The rebels, claiming solidarity with Palestinians in Gaza, targeted ships, leading major firms to suspend Red Sea passages. El-Sisi highlighted the economic impact, citing a drop in annual revenues from nearly $10 billion to meet financial commitments.

The UN reported a 42 percent decrease in Suez Canal ship transits, impacting global trade. The canal, a vital income source, contributed $8.6 billion to Egypt’s 2022-23 fiscal year.