It is stated that the Egyptian Parliament approved in principle the “controversial bill” that allows the sale and lease of assets of the Suez Canal. The Suez Canal generated $7 billion in revenue in the 2021-2022 fiscal year, a 21 percent increase over the previous fiscal year.
According to the written statement of the Joint Committee in the House of Representatives of Egypt, the draft law aims to create a fund belonging to the Suez Canal Administration and this fund to contribute to the income of the Canal Administration and to ensure sustainable development in its investments.
The bill in question, which has caused controversy in the Egyptian public for a while, was approved in principle by the Parliament.
If the bill becomes law, it is foreseen that the Channel Administration will be allowed to “sell, buy, lease, operate the fixed and movable properties of the institution and benefit from them for the future of the institution“.
In the local media of Egypt, the Minister of Parliamentary Affairs, Undersecretary Ala Fuad, stated that “the planned fund will not sell the channel, it will generate income by developing it and will spend it for the channel”.
The law is contested because of the possibility that local or foreign partners from outside the state may become involved in the ownership of the Channel Authority. However, the government argues that the law will “increase the Canal Authority’s capacity to contribute to sustainable economic development”.
It is stated that the Suez Canal Administration aims to make the most of the canal’s revenues in order to develop its role as the shortest route for sea navigation between east and west, in the shadow of current economic conditions and barriers to international trade.
President of the Suez Canal Administration, Osama Rabi, said in a statement yesterday that he predicts the revenues of the canal to reach 8 billion dollars in the 2022-2023 fiscal year.
The Suez Canal generated $7 billion in revenue in the 2021-2022 fiscal year, a 21 percent increase over the previous fiscal year.