Two years of Egypt’s $8.2 billion ‘gift to the world’

A photo taken with a smartphone on March 26, 2015 shows an Egyptian navy FFG-7 frigate passing through the Suez Canal, by the Egyptian city of Ismailia, 100 kilometers northeast of Cairo, on it's way to the Red Sea. (AFP)
Updated 08 August 2017
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Two years of Egypt’s $8.2 billion ‘gift to the world’

CAIRO: Two years after Egypt launched its “gift to the world,” opinion is divided on the $8.2 billion New Suez Canal.
Enthusiasts say the project has already injected nearly $3 billion into the economy. Critics say any genuine economic boost is much farther down the line. Others say the real benefit is not financial at all, but political, emotional and psychological.
What is not in doubt is that the Suez Canal is the fastest shipping route between Europe and Asia and one of the Egyptian government’s main sources of foreign currency, and that the expansion is an astonishing feat of engineering achieved at eye-watering speed.
On Aug. 5, 2014, President Abdel Fattah El-Sisi declared that Egypt would add a second 35 km shipping lane to the 164 km canal, as well as deepening and expanding a 37 km section of the existing waterway. This would allow ships to pass in both directions at the same time, and increase the capacity from 49 to 97 ships a day. And it would be completed, the president said, in one year.
On Aug. 6, 2015, true to his word, El-Sisi inaugurated the new branch of the canal with a glittering celebration, welcoming international leaders aboard a yacht while helicopters and fighter jets flew overhead.
There are also plans to develop the surrounding area into an industrial and commercial hub with new ports and shipping services.
The expansion was financed entirely by Egyptians, who bought investment certificates to pay for it. At the time of the launch, banners calling the project “Egypt’s gift to the world” filled the streets and songs cheering for Egypt were all over the radio.
On the anniversary, canal authority spokesman Tarek Hassanein said the Egyptian people were the true owners of the project. “Egyptian hands impressed the whole world in one year,” he said.
What, however, is the bottom line? The canal authority says the waterway’s revenue from January to July was $2.94 billion. According to Reuters, in July last year revenues stood at $429 million.
Pro-government Egyptian newspapers on Sunday were filled with reports on how the canal expansion was successful, and the “era of bearing fruit” had just begun.
“The New Suez Canal project has made many positive contributions to the Egyptian economy,” said Justin Dargin, a leading Middle East energy expert.
Other analysts believe optimism is premature. “It is hard to judge how much it has added to so far net of its costs,” said Paul Sullivan, a professor of economics at Georgetown University in Washington.
“Over time, in combination with the investments developing around it ... with such infrastructure investment Egypt has a real chance to turn a corner toward a better future.
“The benefits for a while will be more political and emotional, but over time the possible economic benefits could be very large.”
Saeed Sadek, a political sociology professor at Future University in Cairo, said: “The benefits of the project are both political and psychological. El-Sisi himself has said that he wanted with this project to unify Egypt and raise public morale.
“We understand that to see the revenues from this project and its effects on the national economy is something that will take years.
“Nevertheless, the Suez Canal will remain the most vital shipping route in the region.”


More than 85 Houthis killed in battles across Yemen

Updated 35 min 11 sec ago
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More than 85 Houthis killed in battles across Yemen

  • More than 40 militants were killed in the southern Taiz province, and 18 others were killed on the Damt front in the southern Ad Dali province
  • Scores of militants were wounded, while the army seized military-grade equipment and ammunition.

DUBAI: More than 85 Iran-backed Houthi militants were killed and more wounded in clashes with the Yemeni army supported by the Arab Coalition across the country on Saturday, Saudi state-news agency SPA reported.

According to the reports, more than 40 militants were killed in the southern Taiz province, and 18 others were killed on the Damt front in the southern Ad Dali province, while more than 30 were killed in clashes with the Hajour tribe northwest of the country.

Scores of militants were wounded, while the army seized military-grade equipment and ammunition.

Meanwhile, Yemen’ Deputy Foreign Minister Mohammad al-Hadrami said that the continued conflict stirred by the Houthis threatens the Swedish peace agreement and any progress in the political process.

In a meeting with UAE’s Minister of State for Foreign Affairs Dr. Anwar Gargash on the sidelines of the 55th session of the Munich Conference of Security 2019, Al-Hadrami said that the continued Houthi manipulation represents the failed opportunities for peace in Yemen.

For his part, UAE’s Gargash stressed on the need to combine efforts and send clear messages to the international community revealing the truth behind the militia’s violations on the ground.