Why did Egypt establish a Suez Canal Holding Company?
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Egypt has established a new Suez Canal holding company, known as the Suez Canal Holding Company for Industries and Naval Services and Investments, with the aim of boosting the national economy.
The decision to create the company was made under the Public Business Sector Law 203/1991.
The newly established holding company will focus on industrial and commercial activities related to naval work, including shipbuilding, maintenance and repair, metal works constructions, and integrated projects. It will also manage and invest in the assets of its subsidiaries.
The Suez Canal, a significant source of foreign currency for Egypt, has been experiencing a rise in revenue, with a record high of $7.9 billion in 2022. The number of ships passing through the canal and the total amount of cargo transported have also increased.
The main reason behind the establishment of the new holding company is part of Egypt's efforts to capitalize on the economic opportunities provided by the Suez Canal and further develop its national economy.