Egypt's Revenue from the Suez Canal Plunged Sharply in 2024
FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
Egypt's revenue from the Suez Canal plunged by almost two thirds last year, officials said Wednesday, attributing the sharp drop to regional tensions and wars in the Middle East that have impacted traffic through the key waterway.
The canal is a major source of foreign currency for the Egyptian government, with about 10% of world trade flowing through the waterway in recent years.
The Suez Canal Authority, which runs the waterway, said the canal generated an annual revenue of $3.991 billion in 2024, down from a historic high of $10.25 billion in 2023, according to a statement posted on its Facebook page, The Associated Press said.
Canal traffic has been significantly disrupted after Yemen’s Iran-backed Houthi group started to threaten maritime trade and targeting vessels heading to Israel through the Suez Canal to pressure Israel to stop the war in Gaza, which started on Oct. 7, 2023.
Between November 2023 and January 2024, the Houthis targeted over 100 merchant vessels with missiles and drones, sinking two ships and killing four sailors. The militant group insisted the attacks would continue as long as the wars go on and have devastated shipping through the region.
According to the Egyptian canal authority, only 13,213 ships passed through the canal in 2024, marking a 50% decline compared to the number of ships in 2023, when over 26,000 ships passed through.
Still, canal authority chief Osama Rabie said that the attacks challenge the region but have not prevented Egypt from continuing to provide its navigational and maritime services in the Suez.
The International Monetary Fund reported in March 2024 that the Suez Canal trade dropped by 50% in the first two months of that year, compared to the previous year, citing attacks on vessels in the Red Sea.
Egyptian President Abdel Fattah al-Sisi’s government in 2015 completed a significant expansion of the Suez Canal, adding a second shipping lane and allowing it to handle some of the world’s largest vessels.
The canal, which connects the Mediterranean and the Red seas, was opened in 1869. It serves as a vital artery for global trade — a crucial link for oil, natural gas and cargo. The canal authority operates a system of convoys, consisting of one northbound and one southbound per day.
Saudi Real Estate Market Continues to Rebalance, Selective Recovery Expected in 2nd Halfhttps://english.aawsat.com/business/5292674-saudi-real-estate-market-continues-rebalance-selective-recovery-expected-2nd-half
Saudi Real Estate Market Continues to Rebalance, Selective Recovery Expected in 2nd Half
A view of the Saudi capital, Riyadh. (Reuters)
The slowdown recorded by official indicators in Saudi Arabia’s real estate market during the first half of this year did not surprise observers. Rather, it reflected the practical unfolding of a “rebalancing” phase whose signs began to emerge in 2025.
With major regulatory changes, such as parcel-based real estate registration coming into effect, investors and developers are now recalculating and watching the market carefully, ahead of a second half that experts expect to be led by real demand in residential projects and integrated logistics sectors.
Data from the Saudi Ministry of Justice’s Real Estate Market, covering property transfers, showed that the total value of real estate transactions fell in the first half of 2026 to $21.9 billion, or 82.2 billion riyals, compared with $45.1 billion, or 169.4 billion riyals, in the same period of 2025 — a 51.5 percent decline, the steepest among the indicators.
Transaction activity also slowed, with the number of deals falling to 161,900 from 220,000 a year earlier, a decline of 26.4 percent. The drop extended to the number of traded properties, which fell from 204,900 to 138,600, down 32.4 percent.
The total traded area also declined to 1.625 billion square meters from 2.088 billion square meters in the first half of 2025, a fall of 22.2 percent.
Prices, however, showed relative resilience compared with transaction volumes. Official data showed the average price per square meter fell to 1,965 riyals from 2,217 riyals a year earlier, down 11.4 percent. The highest recorded price per square meter also dropped to 330,578 riyals from 453,124 riyals, a decline of about 27 percent.
Reassessment phase
Real estate expert and appraiser Ahmad Al-Faqih told Asharq Al-Awsat that the decline in transaction value and volume was “very logical” given two decisive developments in recent months: regional geopolitical events represented by the US-Iran war, and the actual impact of government decisions aimed at rebalancing the market.
Both were reflected quantitatively and qualitatively in trading activity, he said.
Al-Faqih added that it was important to distinguish between traded and non-traded assets, noting that the exchange’s indicators show many investors have moved their assets into the “non-traded” category as they choose to wait and reposition themselves in light of market developments.
A general view of Riyadh, Saudi Arabia. (SPA)
He described other economic variables, such as interest rates and financing costs, as “secondary factors” compared with the geopolitical and regulatory files.
“The real estate investor, especially the speculator, is now going through a serious reassessment phase, particularly with the government’s clear direction toward developing the sector and correcting its practices,” he explained. “This approach will help redirect large liquidity flows into genuine development projects and increase housing supply.”
Market resilience
Real estate expert Abdullah Al-Mousa agreed that the more than 51 percent fall in transaction values cannot be read as “a direct reflection of an equivalent decline in prices.” A deeper reading of the indicators is needed, he told Asharq Al-Awsat.
Al-Mousa said the market underwent a pivotal institutional shift in the first half of 2026, with the expanded application of parcel-based registration and the transfer of real estate transactions in key areas — foremost among them Riyadh — to the Real Estate Registry system.
This is a major variable that must be considered in annual comparisons, he said.
He pointed to the market’s underlying resilience, saying the 11 percent decline in the average price per square meter, compared with a drop of more than half in transaction values, confirms that the sector has not seen a sharp price correction
Instead, the composition of deals has changed, with fewer billion-riyal transactions and high-value assets, while prices in locations with real demand have remained relatively stable, he remarked.
Al-Mousa said the market is undergoing a phase of “re-sorting,” rather than a broad price correction. Liquidity has become more selective, and investors are increasingly turning toward high-quality assets with stronger investment feasibility.
Looking ahead, he expects the second half of 2026 to bring gradual, qualitative improvement in real estate activity, while ruling out a quick return to the record transaction levels of previous years.
The sector is in a transitional phase driven by regulatory reforms, greater transparency and a more advanced legislative framework — factors that strengthen investor confidence over the medium term, even if their full impact takes time to appear, he went on to say.
Al-Mousa said integrated residential projects that meet actual demand, along with the logistics and industrial sectors supported by economic growth and major projects, are likely to lead growth in the coming period.
The market’s success in the next phase, “will not be measured only by transaction volume and quantity, but by its ability to attract quality investment, raise asset-use efficiency and achieve a sustainable balance between supply and demand,” he added.
South Korea’s SK Hynix Launching $28 Billion US Listing to Ride Global AI Wavehttps://english.aawsat.com/business/5292653-south-korea%E2%80%99s-sk-hynix-launching-28-billion-us-listing-ride-global-ai-wave
The logo of SK Hynix at a SK Hynix booth before a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, June 30, 2026. (Reuters)
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South Korea’s SK Hynix Launching $28 Billion US Listing to Ride Global AI Wave
The logo of SK Hynix at a SK Hynix booth before a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, June 30, 2026. (Reuters)
South Korean chipmaker SK Hynix will launch a US listing on Monday to raise about $28 billion, according to regulatory filings, as it capitalizes on the global artificial intelligence boom with one of the world's largest new share sales.
The company will sell 17.79 million new shares in the depository receipt listing on the Nasdaq. Ten ADRs will represent one common share and the stock will be sold in a price range that is due to be revealed on Monday, based on SK Hynix's Seoul trading price.
SK Hynix's share price was down 4% at 2,327,000 won each on Monday, but the stock is up about 273% this year, as it rides surging global investor demand for AI stocks. Korea's KOSPI was down 2.2% on Monday.
Memory chip stocks were volatile in recent sessions due in part to renewed investor concerns about how long the boom would last.
"While market volatility has been quite high recently, I would expect demand for SK Hynix shares to remain relatively robust," said Albert Yong, a managing partner at Petra Capital Management.
South Korea last week unveiled a sweeping industrial strategy centered on semiconductors and AI, including a $576 billion chip investment program in the country's southwest to help spread returns from the boom.
SK Hynix and Samsung Electronics will anchor the investment program, the government said.
South Korean President Lee Jae Myung on Monday ordered officials to move quickly to get to work on major chip and AI projects announced last week.
He warned that delays in permits, land acquisition, and securing power and water supply could undermine the country's bid to dominate advanced industries.
MEMORY INFLATION
SK Hynix has been among the world's largest beneficiaries of the AI boom as it outperformed its major rivals Samsung and Micron.
"This is more than a liquidity event," said Dave Mazza, the chief executive officer of Roundhill Investments in New York, which manages an exchange-traded fund tracking DRAM manufacturers, which is one of the most popular ways for US investors to trade SK Hynix's stock. "SK Hynix has been one of the most important companies in the world that most US institutions could not easily own."
"The listing removes an accessibility discount, not a quality discount."
Steve Sosnick, chief strategist at Connecticut-based Interactive Brokers, said individuals and smaller institutions would benefit from the US listing, rather than large investors.
"The new listing will make it easier for capital-hungry Hynix to directly access a new group of momentum-hungry investors," Sosnick said.
SK Hynix said the proceeds from the listing of the American Depositary Receipts will be used to build chip factories in South Korea and buy chipmaking equipment including an extreme ultraviolet scanner made by Dutch equipment maker ASML.
The final price of the New York listing is due to be set on Thursday, ahead of the stock starting trade on Friday, regulatory filings showed. The company's management will meet global investors on a roadshow this week.
The deal is expected to be the second-biggest share sale after a record $85.7 billion initial public offering by SpaceX last month.
Some investors were cautious that memory "inflation" would dent spending on AI infrastructure, mobile phones and PCs.
"We expect better access, but timing of the memory cycle is equally important," said Sundeep Gantori, Standard Chartered's chief investment officer of equities. "We believe memory cycle is beyond the early phase and now in the mid-cycle stage."
SK Hynix is a key supplier of high-bandwidth memory chips used in AI systems by customers such as Nvidia and Google.
SK Hynix is expected to join the chip-heavy Philadelphia SE Semiconductor index, analysts said, helping pave the way for a surge in passive investments. A Nasdaq listing should help reduce the valuation gap with smaller US rival Micron, they said.
Last month, HSBC said it would raise its valuation of SK Hynix by applying a 20% premium to its previous price-to-book multiple of 2.8 times, implying a multiple of 3.4 times, "reflecting more proactive shareholder-friendly initiatives and improved accessibility to global investors."
South Korea to Create Future Fund from Chip Windfall to Spur Growthhttps://english.aawsat.com/business/5292650-south-korea-create-future-fund-chip-windfall-spur-growth
A graduate student majoring in semiconductor engineering demonstrates a PR track at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji/File Photo
South Korea to Create Future Fund from Chip Windfall to Spur Growth
A graduate student majoring in semiconductor engineering demonstrates a PR track at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji/File Photo
South Korea plans to establish a future fund using extra tax revenue generated by a semiconductor boom to invest in growth engines, support for younger generations and efforts to address widening inequality, a top government official said on Sunday.
Speaking at a meeting between the government and the ruling Democratic Party, Presidential Chief of Staff Kang Hoon-sik said President Lee Jae Myung's administration would use the “Future Response Fund” to help finance major national investment projects and strengthen the country's long-term competitiveness, according to Reuters.
“At this critical juncture that will determine South Korea's future, we must not squander additional tax revenue generated by the semiconductor boom and other factors,” Kang said.
He said the fund would support the government's three “mega projects,” create new growth drivers, respond to what he described as “K-shaped” economic polarization and provide housing, startup and employment support for people in their 20s and 30s.
He called the proposed fund “a cornerstone” for realizing Lee's goal of making South Korea globally “irreplaceable” and urged close cooperation between the government and the ruling party to move quickly.
The comments come days after Lee unveiled three large-scale industrial projects across the country centered on semiconductors, physical AI and data centers, backed by hundreds of billions of dollars in planned investments by Samsung Electronics, SK Hynix and government agencies.
The strategy aims to strengthen South Korea's leadership in chip and AI-related industries while promoting growth outside the Seoul metropolitan area.
Prime Minister Han Sung-sook said on Sunday the projects could become a new growth engine if the government, ruling party and private sector worked as “one team,” describing them as a 30-year strategy linking semiconductors, AI, data centers and physical AI.
For his part, Democratic Party floor leader Han Byung-do vowed legislative and budget support for the projects' early implementation.
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