The pace of change in Egypt over the past few years has been remarkable. The political upheaval that grew from widespread popular protests and saw off two presidents captured a huge amount of outside attention. Today, however, the country is making global headlines for a different reason: the official opening of an extension to the Suez Canal, arguably the world’s most important shipping lane. President Abdel Fattah El Sisi has moved quickly to repair his country’s economy since his election in May last year. The Suez project was announced in September and it has been delivered in less than 12 months. As Egypt celebrates its gift to the world today, it must also recognise that there is still more to be done.
The canal extension involved shifting 242 million cubic metres of soil to deepen and widen 37 kilometres of the existing canal and create a 35km-long, 24 metre-deep parallel waterway. The work provided employment for 43,000 people and is expected to create a healthy financial return for the thousands of ordinary Egyptians who were offered a stake in the project for as little as 10 pounds (Dh4.7). The projected doubling in the volume of sea traffic using the canal will put billions into Egypt’s coffers through transit fees – estimated at $13bn annually by 2023 – but the country can’t afford to just sit back.
Mr El Sisi has already shown significant economic mettle. Within weeks of being elected, he imposed unpopular but necessary reforms, including reducing subsidies on petrol and electricity, and increasing taxes on cigarettes and alcohol. Other initiatives are underway. The Suez Canal Zone is a work in progress, with associated projects in the petrochemical, commercial and financial services areas expected to create up to one million jobs.
Egypt must also find ways to build on its existing strengths, including fully exploiting the tourism potential of its famed ancient wonders and beach resorts, and invest in updating its crumbling infrastructure. Removing red tape to improve the ease of starting and conducting small businesses would also go a long way to putting people into jobs. Egypt should also take a leaf from the UAE’s economic playbook and encourage more women into the workforce. In a country of more than 80 million people, there is vast untapped potential. The UAE and other Arab countries have already offered assistance and stand by to help create further sustainable change, because a strong Egypt is good for the entire region.
