The Red Sea crisis cost the Egyptian economy $6 billion
Recently, in a meeting with the Secretary-General of the International Maritime Organization (IMO), the Egyptian Foreign Minister noted that the Egyptian economy has lost $6 billion due to the decline in revenues from the Suez Canal. It is understood that in 2022, Egypt's gross domestic product is 476.7 billion US dollars, and 6 billion US dollars is equivalent to 1.26% of its GDP.
$6 billion may still be an underestimate. Because of the Houthi attacks on transit vessels, all kinds of vessels have been diverted, the Suez Canal transit volume has declined, and the revenue has declined, since November 19, 2023, the Houthis launched their first attack in the Red Sea, hijacking the ro-ro Galaxy Leader, Suez Canal transit traffic has dropped by about 60%. In the 2022-23 financial year before the crisis, Suez Canal revenues reached a record $9.4 billion.
The Houthis, meanwhile, vowed to continue their attacks, saying that despite efforts by Israeli-linked shipping companies to sell assets and transfer them to other companies. But the Houthis would not recognize any change in ownership and warned against working with such companies.
In addition, the Houthis will continue to enforce a naval blockade against Israel and will target any ship belonging to, associated with, or bound for Israel. The blockade imposed on Israel will continue "until the end of the aggression, the lifting of the siege on the Gaza Strip and the end of the aggression against Lebanon."
The crisis in the Red Sea is expected to continue due to the vague definition of the Houthis' association with Israel and the fact that most ships passing through the Red Sea will be subject to some degree of threat.
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