Egypt Expects Suez Canal Revenue to More Than Double in 4 YearsMariam Fam and Ahmed A. Namatalla
Egypt expects revenue from the Suez Canal to more than double within the coming four years to more than $13 billion annually as it expands the waterway, Finance Minister Hany Kadry Dimian said.
The expected jump in revenue from about $5.5 billion now will be used in part to pay interest on investment certificates planned to finance the expansion of the canal, the minister said in a statement today.
President Abdel-Fattah El-Sisi announced a 60 billion Egyptian-pound ($8.4 billion) project that includes building a new channel parallel to the canal, as part of efforts to revive the economy after three years of political turmoil.
The government is financing the project through local-currency investment certificates for five years at a 12 percent interest rate. Central Bank governor Hisham Ramez told Al Arabiya television yesterday that the certificates would be issued next week. He said authorities would also issue five-year, dollar-denominated certificates, paying a 3 percent interest rate.