Egypt's Suez Canal will help relieve economic troubles

Significance

President Abdel-Fattah el-Sisi prioritises attracting foreign investment to the Suez Canal Economic Zone (SCEZ) as a central tenet of his economic policy. On April 11, he directed authorities to continue developing the canal’s waterway, facilities and infrastructure.

Impacts

• Sisi may rely on the United Arab Emirates to help bridge financing needs until IMF structural reforms are implemented.
• Egypt may further delay transferring the strategic Red Sea islands of Tiran and Sanafir to Saudi Arabia, hoping for Saudi largesse first.
• Improved Egyptian-Turkish ties may help attract Turkish investments to support developing the Suez Canal.
• Egypt’s commitment to difficult structural reforms will be tested as the economic situation deteriorates.