The Suez Canal is projecting revenues of $9 billion for the fiscal year 2024/25, despite recent disruptions attributed to Houthi attacks in the Red Sea. This forecast is slightly below the canal's record revenue of $9.4 billion in FY2022/23, prior to the conflict in Gaza that precipitated ongoing Houthi assaults. The canal has faced a significant decline in revenue, with a more than 50% drop reported by Prime Minister Mostafa Madbouly in March. Despite a United States-led naval coalition's efforts to mitigate these attacks, Houthis have persistently targeted vessels associated with Israel, the US, and the UK.
Recent Houthi activities have targeted ships in the Gulf of Aden and the Indian Ocean, leading to diversions of shipping routes away from the Suez Canal, which traditionally accommodates 12% of global trade, towards the longer Cape of Good Hope route. According to Osama Rabie, Chairman of the Suez Canal Authority (SCA), these disturbances have rerouted 3,395 ships. Rabie highlighted the strategic irreplaceability of the Suez Canal despite the alternative route's challenges, including piracy and extended travel times exceeding 10 days.
For FY 2024/2025, the SCA's total budget is approximately EGP 567.83 billion ($12 billion), with projected revenues at about $9 billion. The authority's expenditures are forecasted at EGP 204.9 billion ($4.4 billion), aiming for a net profit of EGP 214.5 billion ($4.6 billion) and capital revenues of EGP 147.628 billion ($3.1 billion).
Source: english.ahram.org.eg