Suez Canal chief Osama Rabie has always been upbeat when speaking about the prospects for the international waterway that offers global industry the shortest way between Asia and Europe and earns Egypt about $10 billion a year.
Unlike tourism – another major foreign currency earner for the cash-strapped nation of 105 million – the canal is seen as a less volatile source of income that could be relied upon to keep earning dollars for Egypt, with at least 12 per cent of international trade passing through it.
The alternative – sailing around the Cape of Good Hope at the southern tip of Africa – is expensive, time-consuming and sometimes made perilous by extreme weather, he has often argued.
This week, the optimism and confidence of the 68-year-old former navy commander made way for some grim comments as Yemen's Houthis continued to attack ships in the Red Sea.
“The number of ships decreases every day,” he said in a local television interview. “The region is a war zone.”
The number of vessels transiting the canal dropped by 30 per cent in the first 11 days of 2024 compared to the same period last year, he said.
Tonnage was also down by 41 per cent and dollar revenue by 40 per cent in the same period.
The Suez Canal Authority on Monday increased transit fees, raising them by up to 15 per cent for some tankers, including those carrying crude oil and petroleum products.
“Because of security concerns, commercial ships may prefer longer routes than entering a war zone,” he said. “Even if I reduce tariffs, it won’t have an impact, because these are security fears.”
Yemen's Iranian-backed Houthi forces say their attacks are in support of Palestinians in Gaza and will only stop if Israel halts its relentless onslaught against the coastal enclave which has claimed more than 24,000 lives and displaced more than 80 per cent of its 2.3 million residents.
The shipping decline, which experts expect to continue for months, is not the first body blow to be dealt to the battered Egyptian economy.
The country's lucrative tourism sector had been hit by the war next door in Gaza before the Houthi attacks began in November.
It adds to the list of major problems pre-dating the Israel-Gaza war which the government blames on the Covid pandemic and the Russia-Ukraine conflict.
Egypt's currency has shed more than 50 per cent of its value against the dollar since early 2022. The decline in its value is much worse when calculated using the exchange rate on the free market, where one dollar is traded for around 55 Egyptian pounds, compared to about 31 in the banks.
The three devaluations since March 2022 have sent inflation soaring to record levels, and the foreign currency crunch has suppressed imports, hurting local industries relying on foreign materials.
It has also sent some foreign investors packing and led to harsh government restrictions on access to foreign currency in the banking system.
With an annual import bill of some $100 billion – of which 60 per cent is spent buying food – the foreign currency shortage has led to periodical shortages or steep price hikes of key items, from poultry and cooking oil to rice and sugar.
The shortages and soaring prices were the subject of a heated parliamentary hearing this week that saw politicians openly calling for the dismissal of the Supply and Trade Minister Ali Muselhy.
“The use-by date of this minister and the government in which he serves has expired,” shouted Diaa El Deen Dawoud during the Tuesday session attended by the minister.
“A minister who cannot implement policies must step down,” said another politician, Mohammed Abdel Aleem Dawoud.
The current shortage of sugar has led to long lines at state-run food outlets across much of the country.
“I am running low on sugar at home because I cannot wait for hours in line to buy it,” said a 71-year-old from Cairo who did not want to be named.
The economic crisis and the suffering of middle class and poor Egyptians in the face of soaring prices coincide with Abdel Fattah El Sisi's landslide win in presidential elections in December.
Barring unforeseen developments, the former army general will now be at the helm for another six years, or 16 years from the time he first took on the role in 2014.
He has been the architect and enforcer of economic policies since he first took office.
However, Mr El Sisi has been facing growing calls to sack the government of Prime Minister Mostafa Madbouly amid persistent demands from the International Monetary Fund to meet conditions agreed when the Washington-based lender agreed to give Cairo a $3 billion loan in late 2022.
Most prominent of these conditions are a genuinely flexible foreign exchange regime and the reduction of the footprint of the state, including the military, in the economy.
However, recognising the impact of the Israel-Gaza war on Egypt, the IMF is now considering doubling the loan facility.
In a bid to deflect criticism, a state think tank and data centre directly linked to the Cabinet has published a preliminary economic vision for Mr El Sisi's 2024-2030 term in office.
The proposals failed to alleviate fears of a deeper economic crisis, chiefly caused by excessive borrowing – Egypt's foreign debt stands at $165 billion – and sparked even more criticism of the government's thinking on the economy.
“It's wishful thinking,” said Hassan Al Sady, an economics professor at Cairo university.
“The document does not say how its goals will be achieved and it's focused on even more borrowing.
“We already have been borrowing like a super power with a super economy,” he said.
SOUTH%20KOREA%20SQUAD
%3Cp%3E%0D%3Cstrong%3EGoalkeepers%3A%20%3C%2Fstrong%3EKim%20Seung-gyu%2C%20Jo%20Hyeon-woo%2C%20Song%20Bum-keun%0D%3Cbr%3E%3Cstrong%3EDefenders%3A%20%3C%2Fstrong%3EKim%20Young-gwon%2C%20Kim%20Min-jae%2C%20Jung%20Seung-hyun%2C%20Kim%20Ju-sung%2C%20Kim%20Ji-soo%2C%20Seol%20Young-woo%2C%20Kim%20Tae-hwan%2C%20Lee%20Ki-je%2C%20Kim%20Jin-su%0D%3Cbr%3E%3Cstrong%3EMidfielders%3A%20%3C%2Fstrong%3EPark%20Yong-woo%2C%20Hwang%20In-beom%2C%20Hong%20Hyun-seok%2C%20Lee%20Soon-min%2C%20Lee%20Jae-sung%2C%20Lee%20Kang-in%2C%20Son%20Heung-min%20(captain)%2C%20Jeong%20Woo-yeong%2C%20Moon%20Seon-min%2C%20Park%20Jin-seob%2C%20Yang%20Hyun-jun%0D%3Cbr%3E%3Cstrong%3EStrikers%3A%20%3C%2Fstrong%3EHwang%20Hee-chan%2C%20Cho%20Gue-sung%2C%20Oh%20Hyeon-gyu%3C%2Fp%3E%0A
THE DETAILS
Solo: A Star Wars Story
Director: Ron Howard
2/5
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
The view from The National
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Types of policy
Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.
Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.
Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.
Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.
Match info
Arsenal 0
Manchester City 2
Sterling (14'), Bernardo Silva (64')
Boulder shooting victims
• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Results
5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; Winner: Nadhra, Fabrice Veron (jockey), Eric Lemartinel (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,400m; Winner: AF Dars, Tadhg O’Shea, Ernst Oertel
6pm: Handicap (PA) Dh80,000 (T) 1,400m; Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel
6.30pm: Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Taghzel, Malin Holmberg, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m; Winner: M’Y Yaromoon, Khalifa Al Neyadi, Jesus Rosales
7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m; Winner: Hakeem, Jim Crowley, Ali Rashid Al Raihe
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Sholto Byrnes on Myanmar politics
The years Ramadan fell in May
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Medicus AI
Started: 2016
Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh
Based: Vienna, Austria; started in Dubai
Sector: Health Tech
Staff: 119
Funding: €7.7 million (Dh31m)
Race 3
Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars
Zayed Sustainability Prize
High profile Al Shabab attacks
- 2010: A restaurant attack in Kampala Uganda kills 74 people watching a Fifa World Cup final football match.
- 2013: The Westgate shopping mall attack, 62 civilians, five Kenyan soldiers and four gunmen are killed.
- 2014: A series of bombings and shootings across Kenya sees scores of civilians killed.
- 2015: Four gunmen attack Garissa University College in northeastern Kenya and take over 700 students hostage, killing those who identified as Christian; 148 die and 79 more are injured.
- 2016: An attack on a Kenyan military base in El Adde Somalia kills 180 soldiers.
- 2017: A suicide truck bombing outside the Safari Hotel in Mogadishu kills 587 people and destroys several city blocks, making it the deadliest attack by the group and the worst in Somalia’s history.
