Egypt denies plans to sell Suez Canal, dismisses $500 mln loss claim

Egypt denied plans to sell, pledge, or transfer ownership of the Suez Canal in exchange for government debt, dismissing social media reports linking such a proposal to comments by its prime minister about losses from disruptions to the waterway’s traffic.

The Cabinet’s media office said Tuesday that the $500 million-a-month figure circulating online referred to remarks Moustafa Madbouly made in 2024, when shipping disruptions caused by regional unrest led companies to reroute vessels away from the canal.

The comments have since been recirculated and linked to a separate proposal that was considered by the government involving the transfer of some state-owned assets, including the Suez Canal, to the Central Bank of Egypt (CBE) in exchange for settling part of the government’s domestic debt, according to the media office.

The government reviewed the proposal as part of efforts to identify ways to manage public debt and reduce servicing costs, but concluded that the approach was unsuitable and did not adopt it, the office said.

No Suez Canal Debt Swap

“The Suez Canal is not part of any such proposal, and the government has no plans to exchange, pledge, or transfer its ownership in return for debt,” the media office said. It described the canal as “a strategic public utility with a special status directly tied to Egypt’s national security and sovereignty, as well as a key pillar of the national economy and global trade.”

The Suez Canal remains under Egyptian ownership and control. Egypt nationalised the canal company in 1956, transferring its assets and rights to the state.

The Cabinet media office urged the public and media to verify information circulating online and rely on official sources.