Egypt Expects Suez Canal revenue to more than double in 4 years

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 yesterday.

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 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.

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