Gov’t announces funding plan for Suez Canal project

President Abdel Fattah al-Sisi has agreed to fund the long-anticipated Suez Canal development project through Egyptian banks and investment certificates, the state-owned Middle East News Agency (MENA) reported on Thursday.

On August 5, Sisi addressed the nation on the value of the development project for the Egyptian economy. A new canal will be dug alongside the historic canal — the fastest shipping route for a significant portion of international trade between Europe and Asia, which generates US$5 billion in revenues.

Sisi emphasized the need for Egyptian citizens to contribute to the military-run project, which he asserted would be completed in one year.

“We want all Egyptians to hold shares in this project," the president declared, urging citizens living inside Egypt to contribute LE100, and expatriates to give US$100.

Prime Minister Ibrahim Mehleb held a press conference on Thursday in which he announced investment certificates in both Egyptian pounds and US dollars for the New Canal. Mehleb spoke to the press after a meeting with Sisi, Central Bank of Egypt (CBE) Governor Hesham Ramez and the ministers of finance, international cooperation and investment.

The investment certificates would support a project that is set to “change the face of international trade, shrink the passage time of the Suez Canal and increase the canal’s income to over US$13 billion,” Mehleb claimed. He said the certificates would be issued through public sector banks, the CBE, the Banque du Caire and Ahly Bank over a period of 5 years, with a 12 percent interest rate cashed every 3 months. 

Mehleb said the government set a target of 1.5 million citizens to be given LE100 certificates.

Presidential spokesperson Ihab Badawy said other funding alternatives were also discussed during the meeting, including issuing a set of stamps and a commemorative coin for the new project, as per Sisi’s request.