Khalid Bhatti
The Egyptian President Abdel Fattah el-Sisi has revealed that his country has lost 40 to 50percent revenue from Suez Canal this year. According to the media reports Al Sisi said that “See what is happening at our borders with Gaza, you see the Suez Canal, which used to bring Egypt nearly $10bn per year, (these revenues) have decreased by 40 to 50 percent and Egypt must continue to pay companies and partners. He was talking to the top executives of the oil companies.” It is a big setback for Egyptian economy. The revenue loss means that Egyptian government will be forced to borrow more this year.
The main reason of revenue loss is the tension in the Red Sea. The Houthi Militia attacks on the cargo ships in Red Sea have severely affected the shipping activity. According to the group, Yemen’s Houthis have launched attacks on nearby commercial vessels in an attempt to put pressure on Israel to cease the conflict in Gaza. Shipping businesses are becoming even more concerned as a result of the US and UK conducting retaliatory raids in Yemen.
