Suez Canal Essay

Throughout history, the Middle East has always been a force that bridged the east to the west. It has long been known for providing foreign goods to the west via the Silk Road from 206 BC – 220 AD (Kris Hirst, 2011). More recently, the Suez Canal has been responsible for facilitating the flow of shipping traffic to and from the west. In recent years, the Middle East has been known for being one of the world’s leading producers in petroleum and natural gases. The region is also famous for having various locations that are considered to be tourist hotspots. Unfortunately, political unrest and security concerns have negativity impacted the rewards that these lucrative fields may offer. This report will focus on the country of Egypt, and whether

This is primarily due to the fact that is it situated in northern Africa. Bordering Israel, Sudan and Jordan, Egypt has fortunately been chosen to be the country where the Suez Canal resides. Built in 1869, the Suez Canal connects the Mediterranean Sea with the Gulf of Suez and is approximately 160 kilometers long. After the Suez Canal began operating, it has had a drastic impact on the world trade. It allowed goods to be transported at a much faster rate while maintaining cost efficiency. According to recent estimates, the canal is responsible for 8 percent of the world’s shipping traffic (Briney, 2011). Given these figures, it is easy to conclude that the canal has had a positive impact on the Egyptian economy. In 2011, the Suez Canal was responsible from generating 5.4 billion dollars in revenue (Werr, 2012). Fortunately, despite the political unrest and various instances of sectarian violence the canal’s operations have not been affected (Jegarajah, 2013). This was due to the Egyptian army, which ensured that the canal ran as smooth as possible. This is clear sign to show how determined the Egyptians are to protect such an economic pillar in their

Egypt has had a long and prosperous history for being one of the worlds leading producers in cotton. This is due to the fertile lands found around the Nile. In 2009 Egypt exported more than 80,000 tons of cotton (WIPO, 2010). Although this may seem like an interesting figure, the fact is that most of the fertile land is not being used to its full potential. The agriculture industry of Egypt is responsible for 13.7 percent of the GDP (Steven Viney, 2011), and could see a significant increase if investments are made. “A country’s agricultural sector is a vital characteristic of its strength as it symbolizes a nation’s ability to sustain life,” said Shaban Salem, an economist from Egypt’s Agricultural Economics Research Institute (AERI) (Steven Viney, 2011). Unfortunately, this industry has been largely overlooked by the government in favor on focusing their efforts on the Seuz Canal and tourism. This indicates an abundance of investment opportunities for multinational