Egypt's President backs Saudi call for Red Sea security after meeting with Crown Prince

Red Sea disruptions have dealt a significant blow to Egypt’s economy, with revenues from the Suez Canal falling by roughly $7 billion over the past two years, according to data from the Suez Canal Authority. The decline follows a series of attacks on commercial vessels by Yemen’s Houthi rebels, which have forced many shipping lines to reroute around the Cape of Good Hope or to pause operations, reducing the volume of traffic that transits the canal.

The revenue shortfall represents a substantial portion of the canal’s annual earnings, which historically account for about 10 percent of Egypt’s GDP and fund major infrastructure projects. Analysts note that the loss has strained public finances and heightened concerns about the country’s fiscal balance, prompting the government to explore alternative revenue streams and to bolster maritime security in collaboration with regional partners. While the canal remains operational, the ongoing volatility in the Red Sea underscores the vulnerability of Egypt’s economy to geopolitical disruptions.