Theme

Economy

Stories related to finance and economics.

Editor's choice
News
Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.
Editor's choice
Opinion
Opinion: In the South Caucasus, connectivity should help build trust

Opinion: In the South Caucasus, connectivity should help build trust

All transport and communication lines in the South Caucasus remain closed. This failure can largely be attributed to the shift of connectivity from a concept intended to build trust to one tied up with security arrangements in the post-2020 era. "Instead of fostering closeness between the parties, concepts that were supposed to enhance cooperation were perceived as threats to territorial integrity and sovereignty", writes Shujaat Ahmadzada in this op-ed for commonspace.eu. "One should not overlook the fact that the November 10 statement and many of its components have been fundamentally and operationally Russia-centric, implying that the Armenian-Azerbaijani disagreements have to be settled around a third party – albeit not an ordinary one but one with hegemonic ambitions."

Filter archive

Publication date
Editor's choice
Opinion
Tourism in the Gulf is a game changer

Tourism in the Gulf is a game changer

The process of opening-up Saudi Arabia to the world is going on in earnest. As a part of the Vision 2030 blueprint, masterminded by Crown Prince Mohammed bin Salman, the Saudi government is implementing a plan, which, amongst many other things, aims to turn the Kingdom into a popular tourist destination by the end of the decade. Other GCC countries, but particularly UAE, Qatar and Oman, also seek a growth in tourism, and see the industry as one of the potential pillars for their post oil economies. In many countries, tourism is a major economic activity that contributes to economic prosperity. It is also an industry which generates revenues that quickly seep downwards to the very grassroots of society, and so everyone benefits from it. But apart from the economic and financial gains, tourism can also be an instrument of change within societies, opening up conservative, inward looking communities to the outside world. Several Arab Gulf countries have the ambition of turning themselves into major tourist destinations, and some have already considerable success. The potential is great, but there are also some risks.
Editor's choice
News
Ukrainian authorities raid tycoon's home amid corruption crackdown

Ukrainian authorities raid tycoon's home amid corruption crackdown

Ukrainian authorities have raided the home of the prominent business tycoon Ihor Kolomoisky amid a nationwide anti-corruption crackdown. On Wednesday (1 February) the home of the former interior minister Arsen Avakov was also searched, and the Ukrainian Cabinet of Ministers fired the heads of the customs and tax agencies too. Kolomoisky is an erstwhile ally of President Volodymyr Zelensky, whose TV channel gave Zelensky his break with the comedy series Servant of the People, in which Zelensky played a history teacher who ends up becoming president after a student posts a video online of an expletive-laden rant by Zelensky's character about the state of politics in the country. Kolomoisky also backed the former actor's real-life bid for the presidency. He was also the governor of the wider Dnipropetrovsk region from 2014 to 2015, and played a key role in funding volunteer battalions in response to Russia's initial invasion of Ukraine in 2014.
Editor's choice
News
EU and Uzbekistan officials meet to discuss ties, promise to expand cooperation

EU and Uzbekistan officials meet to discuss ties, promise to expand cooperation

The Uzbek Minister of Investments, Industry and Trade Laziz Qudratov hosted the head of the delegation of the EU in Uzbekistan Charlotte Adriaen on Monday (30 January) to discuss ways to advance bilateral ties in trade, economic and investment spheres. The parties explored the opportunities for expanding the main areas of bilateral financial and technical cooperation, and discussed the EU's Multi-Annual Indicative Programme for Uzbekistan (MIP), the implementation of which has been allocated €76m for the period 2021-2024. Additional funds for the same time frame were also earmarked for Human Rights support (€3.6m), and Civil Society Organisation (€3.4m). The MIP 2021-2027 has three main priorities, namely effective governance and digital transformation; inclusive, digital and green growth, and the development of a smart eco-friendly agri-food sector.
Editor's choice
News
Georgian GDP booms by more than 10% in 2022

Georgian GDP booms by more than 10% in 2022

Georgia's GDP boomed by 10.1% in 2022, according to figures released by the National Statistics Office of Georgia, Geostat, on Tuesday (31 January). The country's economic performance was particularly strong towards the end of the year, registering a year-on-year increase of 11% in December 2022. According to the report published by Geostat, growth was registered in construction, manufacturing, transportation and storage, financial and insurance activities, trade, hotels and restaurants. Meanwhile a decline was registered in real estate activities, professional, scientific and technical activities, electricity, gas, steam and air conditioning supply. Georgia imported US$134.5bn of goods in 2022, 33.2% more than last year. Meanwhile exports also rose by 31.8%, totalling almost US$56bn. Another notable statistic from the report concerns the number of newly registered enterprises, at 6,436 in December alone. This marks a year-on-year increase of 41.4%.