Houthi Attacks Cut Suez Canal Revenue By 40-50%, Says Egypt's Sisi

A container ship sails at the Suez Canal, in Ismailia, Egypt March 31, 2021. (Handout via Reuters)
A container ship sails at the Suez Canal, in Ismailia, Egypt March 31, 2021. (Handout via Reuters)
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Houthi Attacks Cut Suez Canal Revenue By 40-50%, Says Egypt's Sisi

A container ship sails at the Suez Canal, in Ismailia, Egypt March 31, 2021. (Handout via Reuters)
A container ship sails at the Suez Canal, in Ismailia, Egypt March 31, 2021. (Handout via Reuters)

Egyptian President Abdel Fattah al-Sisi said Monday that revenues from the Suez Canal had "decreased by 40 to 50 percent" so far this year due to attacks on shipping by Yemen's Houthis.

The canal is one of the main sources of foreign currency for Egypt which is gripped by a severe financial crisis.

Since November, the Iran-backed Houthis have launched numerous attacks on vessels in the Gulf of Aden and Red Sea, which the group says are aimed at ships with links to Israel in solidarity with the Palestinians in the war-torn Gaza Strip.

The attacks have caused several major shipping firms to suspend passage through the Red Sea, which usually carries around 12 percent of global trade, and divert vessels thousands of miles around Africa.

"See what is happening at our borders... with Gaza, you see the Suez Canal, which used to bring Egypt nearly $10 billion per year, (these revenues) have decreased by 40 to 50 percent and Egypt must continue to pay companies and partners," Sisi said during a conference with oil companies, AFP reported.

The United Nations said in late January that the overall number of ships passing through the Suez Canal, which links the Red Sea to the Mediterranean, had fallen 42 percent in the previous two months.

The number of weekly container ship transits through the Suez fell by 67 percent year-on-year, according to the UN Conference on Trade and Development (UNCTAD), while tanker traffic dropped 18 percent, the transit of bulk cargo ships carrying grain and coal was down six percent and gas transport at a standstill.

The engineering landmark, which opened in 1869, raised around $8.6 billion for Egypt in the 2022-23 fiscal year, a vital source of foreign currency, alongside tourism and remittances, in a country where importers and money changers struggle to source dollars.



Saudi Arabia to Host Multilateral Industrial Policy Forum

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia to Host Multilateral Industrial Policy Forum

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Saudi Arabia, in partnership with the United Nations Industrial Development Organization (UNIDO), will host the Multilateral Industrial Policy Forum (MIPF) in October, underscoring the Kingdom's significant industrial transformation, in line with Vision 2030, and aiming to expand the Saudi industrial base and solidify its position as a leading global industrial center.
Organized by the Ministry of Industry and Mineral Resources in Riyadh, the forum is yet another substantial industrial development initiative the Kingdom relentlessly takes.
By carrying out programs focused on innovation, diversification, and boosting of the industrial sectors, including 12 strategic sectors identified in the National Industrial Strategy, Saudi Arabia seeks to raise competitiveness and support its national economy.
Beyond the National Industrial Strategy, the Kingdom has invested in developing industrial infrastructure, such as industrial cities and special economic zones, and fostered international cooperation to facilitate transfer of knowledge and technology. The forum, in which global experts and decision makers participate, is an ideal platform to exchange expertise and set best practices in industrial policies.
Saudi Arabia aims to develop policies that are in line with international standards, thus increasing the global competitiveness of its industrial sector. By leading initiatives for sustainable industrial practices, promoting international cooperation, exchanging expertise, and adopting environmentally friendly technologies, the Kingdom seeks to enhance the flexibility of its supply chains, in line with the Global Supply Chain Resilience Initiative.
The industrial sector in Saudi Arabia witnessed significant developments in 2023, including announcing major investment opportunities in targeted sectors, issuing a license for the first Saudi-made electric car brand "Ceer", and opening the first electric vehicle manufacturing factory "Lucid". The Kingdom aims to produce over 300,000 cars annually by 2030.
Attracting private sector investments is crucial to achieving the goals of the National Industrial Strategy. The industrial sector focuses on enhancing integration among various sectors and their supply chains, developing infrastructure, encouraging joint investments, promoting local content, and empowering national companies through policies, financing, and training.
In July 2022, the Ministry of Industry and Mineral Resources launched the Future Factories Program, which aims to transform 4,000 factories from labor-intensive models to efficient, automated operations utilizing advanced industrial solutions. This initiative seeks to enhance competitiveness, improve product quality, and increase exports of Saudi non-oil products.
The ministry has also made strides in improving the regulatory and legislative environment for the industrial sector, creating an environment conducive to investments and fair competition.
The ministry's goals for 2024 and 2025 include attracting investments in targeted industrial sectors, reaching a total investment volume of SAR451 billion, adding 1,500 products to the mandatory local content list, increasing the industrial sector's contribution to non-oil GDP to SAR412 billion, and boosting non-oil exports to over SAR300 billion. Moreover, the ministry aims to launch the industrial sector governance initiative to stimulate integration and concerted efforts among relevant stakeholders.
The second edition of the Multilateral Industrial Policy Forum, hosted by Riyadh under the theme "Transforming Challenges into Sustainable Solutions through Industrial Policies", will bring together some 3,000 industry leaders from around the world, including decision makers, CEOs, industry specialists, and people interested in developing industrial policies.