Egypt's Economy
The Suez Canal
How the Suez Canal earns Egypt billions in fees, the 1956 nationalisation, the 2015 expansion, and how Red Sea attacks from 2023 cut traffic and revenue.
The Suez Canal links the Mediterranean and the Red Sea.
Importance
A large share of world trade, including Asia-Europe container traffic, passes through it, avoiding the long trip around Africa.
History
- Opened in 1869.
- Nasser nationalised it in 1956, sparking the Suez Crisis.
Revenue
Canal tolls earn Egypt billions of dollars a year, a key source of foreign currency.
2015 expansion
A New Suez Canal section added two-way traffic along part of the route.
Ever Given
In 2021, the giant ship Ever Given blocked the canal for six days, holding up world trade.
Red Sea attacks
From late 2023, Houthi attacks on ships in the Red Sea caused many shippers to reroute around Africa, sharply cutting canal revenue.
A container ship from China to Europe sails around the Cape of Good Hope, adding about 10 days, to avoid the Red Sea.
Security shocks can cut it sharply.
- The canal is a key trade route and income source.
- Nasser nationalised it in 1956.
- The Ever Given blocked it in 2021.
- Red Sea attacks from 2023 cut revenue.
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