Egypt Loses $10bn in Suez Canal Revenue because of Attacks in Bab al-Mandab Strait

Egypt has lost $10 billion in revenues from the Suez Canal due to ongoing attacks on shipping in the Bab al-Mandab Strait,President Abdel Fattah el-Sisi said on Monday,May 4,during a meeting in Cairo with Mathias Cormann,6th Secretary-General of OECD.

The attacks,which began in November 2023,have significantly reduced vessel traffic through the canal,a vital artery for global trade and a key source of foreign currency for Egypt. The strikes have been carried out by Yemen’s Houthi movement in response to the war in Gaza Strip.

According to Osama Rabie,canal revenues fell by 66 per cent in 2024 to $3.9 billion,down from $10.2 billion in 2023. The decline underscores the growing economic toll of regional instability on Egypt’s finances.

The Bab al-Mandab Strait,linking the Red Sea to the Gulf of Aden,remains a critical global shipping route alongside the Suez Canal and the Strait of Hormuz. Continued tensions—including threats of escalating attacks and fragile ceasefire efforts—have heightened uncertainty across key maritime corridors.