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The Houthi attacks are costing Egypt many billions.

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Houthi terrorist acts against merchant ships in the Red Sea are causing significant losses in Suez Canal transit fees.

Οι επιθΕσεις των Χ&omicron ;yθι κοστΙζουν στην ΑΙγυπτο πολλ δισ.

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Attacks by Yemen's Houthi rebels against international shipping in the Red Sea are also hurting Egypt financially. As many ships avoid the strait between the Arabian Peninsula and north-east Africa and therefore also the passage through the Suez Canal, the country registers significant losses from transit fees.

In the 2022-2023 fiscal year, shipping through the Suez brought Egypt $9.4 billion (€8.6 billion) in fees. Since the beginning of the year the revenue from the canal has decreased by 40% compared to 2023. Instead of the 777 ships that passed through the canal in the same period last year, only 544 have passed this year. At the same time the ships, which make the rounds of the African continent passing through the Cape of Good Hope increased by 67%. To compensate for the economic losses, Cairo in January raised transit fees by 5-15%.

Cairo has reasons not to participate in the business

Egypt, however, is not participating in the US-UK military operation to secure the passage of merchant ships through the Red Sea. Cairo has important reasons for this decision, Stefan Rohl, an Egypt expert at the Berlin-based Foundation for Science and Politics (SWP), told DW: “The view that targeted military strikes against the rebels will end attacks by Houthis against merchant ships in the Red Sea is, I believe, somewhat naive. The Egyptian government must see it similarly.

But could Cairo's reluctance to join military strikes against the Houthis lead to a confrontation with the US? Stefan Rohl thinks not, recalling that many countries, including Western countries, do not take part in the military operation. Obviously, for this reason, Cairo's no is not of great importance, Stefan Roll estimates: “The US knows how strong reactions any government policy that would even indirectly support Israel would cause in Egypt. Washington realizes that Cairo would be risking a lot if it were to implement a policy that opposes the country's public opinion.”

Source: www.kathimerini.com.cy

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