Egypt eyes Suez Canal revenue growth in 2026 amid Red Sea stability

CAIRO – 18 January 2026: Egypt expects Suez Canal revenues to further improve in the second half of 2026, supported by a gradual return of some shipping lines and improving security conditions in the Red Sea.

The outlook was outlined during a meeting between President Abdel Fattah El-Sisi and Suez Canal Authority (SCA) Chairman Osama Rabie.

The SCA chairman said maritime traffic through the canal showed relative improvement and signs of partial recovery in the second half of 2025.

This development came amid efforts to mitigate disruptions and enhance the waterway’s competitiveness, as well as the completion of southern sector development.

Rabie noted that the gradual return of ultra-large container vessels during the latter half of 2025 marked a positive signal for a broader recovery, as stability returns to the Red Sea region.

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He said Suez Canal revenues are expected to improve further in the second half of 2026, amid the return of some shipping lines to normal traffic levels by year-end.

The recovery of shipping through the Suez Canal, a major global waterway that previously handled around 12 % of world shipping traffic, would have significant economic implications for Egypt, which relies on the canal for a large portion of its foreign currency revenues.

Traffic through the canal was severely disrupted between 2023 and 2025 due to the Israeli war in Gaza, compounded by Houthi attacks on vessels in the Red Sea in solidarity with Palestinians in the enclave.

These disruptions forced many carriers to reroute around Africa’s Cape of Good Hope, increasing transit times and shipping costs.

The SCA reported that these disruptions caused a sharp decline in revenues, with 2024 earnings falling to around $4 billion, down from a historic high of $10.25 billion in 2023.

South Red Sea Shipyard

The meeting also reviewed the completion of development works in the South Red Sea Shipyard as part of efforts to localize the maritime industry and strengthen partnerships with the private sector.

Rabie outlined the latest developments in the construction of 12 deep-sea fishing vessels, as well as the completion of six tugboats as part of a series of 10 “Azm”-class tugboats with a 90-ton bollard pull.

He also noted progress in the construction of an additional 10 tugboats with an 80-ton bollard pull at SCA shipyards.

Rabie further reviewed the SCA’s completion of 10 river buses, in addition to plans to procure and modernize the dredger fleet to enhance the authority’s operational capabilities.

Suez Canal, Ports Development

The president stressed the need for effectively meeting the needs of Egyptian ports for tugboats and various marine units, as well as developing and modernizing Egypt’s fishing fleet.

 

El-Sisi also directed the continuation of the comprehensive development strategy for the Suez Canal, its navigational channel, facilities, and infrastructure.

He underscored the importance of ensuring the canal maintains its globally recognized performance, efficiency, and capacity, in line with its unique and pivotal role in international maritime navigation and global trade.