Egypt is cautiously optimistic about the recent ceasefire between Hamas and Israel, though officials acknowledge it is too early to draw definitive conclusions. Minister of Investment and Foreign Trade, Hassan El Khatib, shared these sentiments during an interview with Bloomberg TV at the 2025 World Economic Forum in Davos.
In discussing the implications of the Gaza ceasefire, El Khatib noted that the return to normal operations through the Suez Canal would not be instantaneous. “It’s not going to be an immediate switchback to the Suez Canal as we envisage,” he remarked, emphasizing the importance of what happens next in the region.
The Suez Canal has experienced a significant drop in revenues, reporting a staggering loss of over 60% in 2024 compared to the previous year, totaling around $7 billion. This decline can be attributed to ongoing attacks in the Red Sea that have disrupted navigation and global trade.
These financial figures were disclosed following a meeting in December between Egyptian President Abdel Fattah El-Sisi and Admiral Ossama Rabiee, Chairman of the Suez Canal Authority (SCA).
Last week, President El-Sisi also met with Arsenio Dominguez, Secretary-General of the International Maritime Organization (IMO). Discussions during this meeting included the security situation in the Bab el-Mandeb Strait, a critical area for international maritime trade.
President El-Sisi highlighted the significant role the IMO can play in fostering stability, given its capacity to connect global and regional stakeholders within the maritime shipping sector. He expressed hopes for a calming of tensions in the region, particularly in light of the successful ceasefire in Gaza, which is part of broader efforts to restore security.
Secretary-General Dominguez praised Egypt’s advancements in maritime port services in recent years, which have effectively supported global shipping and supply chains.
The two parties also explored opportunities for collaboration in environmental issues, climate change, and the promotion of renewable and clean energy. They reviewed Egypt’s ambitions to become a global hub for green hydrogen production, aligning with the IMO’s initiatives to adopt alternative fuels in shipping.
Additionally, the meeting addressed the need for the IMO to facilitate international expertise in green hydrogen technology and to support investment in the necessary infrastructure at ports and key maritime corridors in developing countries.
