Suez Canal To Introduce Its Personal Sovereign Wealth Fund
The Suez Canal Authority, popular as the SCA, has revealed its plans to introduce a sovereign wealth fund to safeguard the canal from unforeseen fluctuations and unprecedented crises in worldwide commerce like those resulting from COVID-19, SCA officers have mentioned. The authority channels the revenue derived from the canal with transit charges to the Egyptian Ministry of Finance at each month-end. An SCA official has confessed that it had begun setting apart the revenues to build the sovereign wealth fund.
On 15 December this year, Ibrahim Beshara who heads the SCA’s monetary administration mentioned to the Committee on Budget and Planning that the fund was proposed by the country’s political management as its long-term initiative for the Suez Canal. The Egyptian Ministry of Justice has accredited the invoice framed by the SCA to create the fund.
The new invoice is likely to be up for debate at the House of Deputies when the Cabinet shares its approval. Deep down the potential fund are some pressing problems faced by the canal, the shortest route connecting Asia and Europe, confronted during the earlier interval.
The masterminds behind the new fund are also getting ready for hardships that may come up. The positive impact of the measures has manifested in terms of canal revenues.
The revenue of the Suez Canal from the beginning of this year up to the first half of this month was $6 billion. This is about 13% greater than the revenues fetched by the Suez Canal during the same period in 2020. The SCA estimates that the revenue will rise by 11% in 2022’s first half. The International Monetary Fund estimates the revenues to touch $7.6 billion in FY year 2024-25.
Reference: postofasia.com
