Egypt’s Trade Deficit Narrows by 13.3%

The Great Pyramids in Giza in Egypt. March 2020. (Reuters)
The Great Pyramids in Giza in Egypt. March 2020. (Reuters)
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Egypt’s Trade Deficit Narrows by 13.3%

The Great Pyramids in Giza in Egypt. March 2020. (Reuters)
The Great Pyramids in Giza in Egypt. March 2020. (Reuters)

Egypt’s trade deficit narrowed by 13.3 percent YoY to $3.1 billion in April from $3.5 billion, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) on Sunday.

The North African nation’s exports surged by 47.4 percent to $2.84 billion in April. The rise was ascribed to higher exports of medicines and pharmaceuticals, by 77.2 percent, and fresh fruits, by 60.2 percent.

Egypt's imports increased by 8.1 percent to $5.92 billion in April, with higher imports of passenger cars by 58.9 percent, and iron raw materials and condensates by 58.6 percent.

On another note, Egypt’s Suez Canal revenue rose to a record $5.84 billion in its 2020-21 financial year, up from $5.72 billion in the previous year.

The Suez Canal Authority said the revenues in the first six months of this year increased to about $3 billion compared with $2.76 billion in the same period last year.

In the meantime, an Egyptian government official told Reuters that Egypt withdrew in one year around 2 million square meters of lands from tourism companies over their failure to meet their commitments.

The lands are located in Marsa Alam, which overlooks the Red Sea.

The official, who preferred to remain anonymous, said that more withdrawals are expected in the future.

He added that the country withdrew around 27 million square meters of the Red Sea lands and Quseer in the period between June 2013 and June 2021.

The reason behind this decision is the companies’ failure to commit to the timeline of the projects. This means that any company that implemented 10 percent or less of the project had its land withdrawn.

Major Egyptian investors whose lands were withdrawn are Hamada Abo El Enein, chairman and managing director of Sharm Dreams Company for Tourist Investment, the Egyptian Resorts Company SAE (ERC), and businessman Mohammed Al-Baker.



US Involvement in Iran-Israel Conflict Raises Fears of Strait of Hormuz Closure

A general view of the Strait of Hormuz (Reuters)
A general view of the Strait of Hormuz (Reuters)
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US Involvement in Iran-Israel Conflict Raises Fears of Strait of Hormuz Closure

A general view of the Strait of Hormuz (Reuters)
A general view of the Strait of Hormuz (Reuters)

As the conflict between Iran and Israel intensifies, experts warn that direct US involvement could trigger a dangerous escalation, most notably, the closure of the Strait of Hormuz, a critical global energy chokepoint.

If Iran were to follow through on this long-standing threat, the consequences would be severe, cutting off roughly 20% of the world’s oil exports and 30% of global natural gas shipments.

Russian strategic analyst Andrey Ontikov told Asharq Al-Awsat that fears remain real and growing, particularly if the war expands.

If the United States is drawn into the war alongside Israel, the likelihood of Iran moving to close the Strait of Hormuz becomes the most serious and effective threat, he said.

Ontikov explained that such a move would paralyze global energy flows from the Gulf, sending oil and gas prices soaring and inflicting major economic damage on both exporting and importing nations.

The resulting disruption would directly affect international shipping, raise transport and insurance costs, and cause energy prices to spike, further straining already fragile global supply chains, he added.

He also warned that broader geopolitical implications are at stake. A regional war involving the Strait of Hormuz could jeopardize key trade corridors, including China’s Belt and Road Initiative and Russia’s North-South transport corridor.

That would have a direct economic impact on both Beijing and Moscow, forcing countries to look urgently for alternative trade routes, Ontikov said.

Oil prices are already rising, though Ontikov believes that if tensions ease, the global economic impact could be contained. However, a prolonged or widened war would paint a far more troubling picture.

Saudi economic expert Dr. Ibrahim Alomar, head of Sharah Consulting, echoed these concerns.

“If the conflict stays limited, the effects may include a temporary $10–$20 increase in oil prices and limited disruption to financial and shipping markets,” he said. “But a broader war could push oil prices above $120, causing inflation and a sharp global economic slowdown.”

Alomar warned that in the worst-case scenario - where the Strait of Hormuz is fully closed - oil prices could skyrocket past $200, triggering hyperinflation, severe recession, and a collapse in global financial markets.

“Such a scenario could ultimately reshape the global economic system, depending on who emerges least damaged from the crisis,” he concluded.