• Fri. Mar 1st, 2024

Egypt’s Struggle to Survive Amid Iron Swords War and Economic Hardship

ByEditor

Feb 11, 2024
Egypt’s Economic Dilemma: Reliant on Israeli Gas but Seeking Alliances with the Houthis

The Iron Swords war, a conflict that is fought across multiple arenas, has had a significant impact on countries not directly involved in the fighting. Egypt, in particular, has been affected by this war, which comes at a terrible time for the country.

The crisis caused by the Houthis in the Red Sea has resulted in serious damage to the Suez Canal. Egypt’s president, Abdel Fattah Al-Sisi, is dealing with not only the debt crisis and a crashing currency but also rising inflation. The financial implications of the 64% drop in traffic in the Suez Canal are significant; Egypt brought in about 47% less revenue compared to the previous year.

A maritime analysis company reported that traffic around the Cape of Good Hope increased by 168%, from 77 to 206 ships per day. In response to this crisis, Egypt has asked the Houthis to focus only on attacks against Israel. However, damage to the Suez Canal began when the Houthis began targeting nearly all of shipping giants.

Egypt’s debt crisis has been growing over recent years and now stands at more than 160 billion dollars. Credit rating companies have downgraded Egypt’s credit image due to this crisis and other economic factors. Holding discussions with the International Monetary Fund, Egypt is seeking to release additional aid funds; however, this has been difficult after last year’s aid package was stopped because Egypt did not carry out necessary reform measures.

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