Egyptian Foreign Minister Badr Abdel Aty said on Sunday that there has been a significant decline in Suez Canal revenues as a result of the “unacceptable” escalation in the Red Sea.
Abdel Ati added in a press conference in Kuwait that further militarization in the Red Sea region would seriously harm global trade and the Egyptian economy, considering that Egypt may be most affected by the current escalation in this region.
In solidarity with Gaza, which has been subjected to Israeli annihilation since October 7, 2023, the Houthis in Yemen are attacking Israeli or related cargo ships in the Red Sea with missiles and drones, which has prompted many ships not to pass through the Suez Canal and to prefer using a route despite the high cost. This prompted Western countries to form an alliance to prevent attacks, turning the southern Red Sea into an arena of confrontation.
The Egyptian minister indicated that he spoke with the Kuwaiti Foreign Minister about the “catastrophic” conditions in the Red Sea and the current escalation, which affects international shipping traffic.
He said: “If there is seriousness to prevent escalation, the roots of the problem must be addressed, which is of course the Israeli aggression against the Gaza Strip and also against Lebanon, so that we do not give an excuse to any party.”
He stressed that “stability is very important, and stability will not be achieved unless we address the roots of the problem and stop this brutal aggression.”
He also stressed that his visit to Kuwait “is not only economic, but primarily political, but the economic dimension is important for the two countries to develop this sector.”
He said, “We are proud of Kuwaiti investments in Egypt and hope to pump more of these investments.”
Difficult forecasts
It is noteworthy that the International Monetary Fund stated last week in a statement that the Red Sea tensions caused Egypt to lose 70% of its revenues from the Suez Canal, which is a major source of foreign currency for the country.
The Fund stated that as multiple geopolitical tensions continue in the region, “the economic outlook for the region, including Egypt, remains difficult.”
He added, “The effects of the conflicts in Gaza and Israel and trade interruptions in the Red Sea continue to negatively affect morale, and cause significant declines of up to 70% in revenues from the Suez Canal, which constitutes a major source of foreign currency for Egypt.”
