Why Egypt must cut Suez canal red tape

Egypt must strip back bureaucracy to attract investment in its planned second Suez canal and bring in new laws making it easier for companies to get licenses and land, a legal firm linked to the project said.

Egypt plans to build the new canal alongside the existing 145-year-old historic waterway in a multibillion dollar project aimed at expanding trade along the fastest shipping route between Europe and Asia.

The Suez Canal already earns Egypt about $5 billion a year in revenues, a vital source of hard currency for a country that has suffered a slump in tourism and foreign investment since a popular uprising toppled autocrat Hosni Mubarak in 2011.

The new channel is part of a larger project to expand Suez port and develop 76,000 square km (29,000 square miles) around the canal into an international industrial and logistics hub.