Doubts have surfaced as to whether the Suez Canal is financially strong enough to improve the quality of life for the Egyptian population.
According to Hellenic Shipping News, the canal brings in around US$5 billion a year but may cost too much to complete and take too long to see any positive results for the country.
Professor Andrew Lambert, Naval History teacher in the Department of War Studies at King’s College in London, says the canal may not facilitate enough economic recovery to improve the current security situation. Also, the canal may not create enough jobs.
Lambert said: “Economically it may be quite attractive for some customers, but I think the cost is going to be the key.
“Is global shipping sufficiently dynamic to make this a paying return? And the canal itself took some time to pay itself, the original canal, the cost of the project was far higher than it was estimated.”
Carool Kersten, Senior Lecturer on Islam at King’s College said: “In terms of employment or making a contribution to Egypt’s GDP, in terms of expanding the volume of trade that passes through Egypt, that will then have only a secondary effect, I think, on people’s living standards.
“So, this is a long-term thing. Not something that will turn around Egypt in the next five to 10 years.”
(Source: The National)