People cheer while carrying national flags as they gather in Tahrir square to celebrate an extension of the Suez Canal in Cairo yesterday. Some Egyptians, however, remain sceptical about the potential benefits and expected revenue from the New Suez Canal.


DPA/Cairo


President Abdel Fattah al-Sisi and pro-government media have touted the expansion of the Suez Canal as a much-needed boost to Egypt’s ailing economy, but the project has polarised the country.
The water passage - built by the army and a consortium of civilian companies and funded entirely by Egyptians - will allow two-way traffic in part of the Suez Canal, the fastest shipping route between Asia and Europe.
The expansion will also significantly reduce the waiting time for ships using the global waterway, which is a main source of Egypt’s income.
“Our President al-Sisi has made the dream come true, uniting us for one goal: To create a new, prosperous Egypt,” says Ahmed Hamouda, a financial manager. “It is not a mere project. It is a national goal achieved by Egyptians and for Egyptians.”
Amira Bishady, a calligrapher, said: “From what I heard through the media, the new Suez Canal will likely boost the Egyptian economy.”
“This made me, like million others, invest in it,” she said.
The $8bn upgrade was financed through five-year bank deposit certificates whose purchase was limited to Egyptians with an annual 12% interest rate.
The money was raised in eight days in what pro-government media hailed as confidence in the project and al-Sisi.
It took one year to construct the extension, marking the biggest expansion of the Suez Canal since it was opened in 1869.
Thousands have used the hashtag #Egyptcelebrates on Facebook to praise the official inauguration, while massive celebrations are planned across the country.
The official project website calls it “Egypt’s gift to the world.”
One key target is to increase the number of ships using the canal from 49 in 2014 to 97 daily by 2023.
The government hopes the upgrade will ramp up annual revenues of the canal from $5.3bn expected at the end of 2015 to $13.2bn by 2023.
The logistics and industrial projects planned along the banks of the canal and its expansion would generate around 1mn jobs, according to government officials.
Some Egyptians, however, remain sceptical about the potential benefits and expected revenue.
“Any project, regardless of its size, is welcomed if it really offers new jobs and generates hard currency,” said Mohammed Magdy, a psychical trainer.
“What I don’t like about this project are the exaggerated and unrealistic figures given by the government and the media about it,” he added.
This is the first major project completed since al-Sisi, a former army general, took office last year.
Egypt has witnessed political divisions and violence since 2013 when the army, led by al-Sisi at the time, deposed Islamist president Mohamed Mursi following mass street protests against his rule.
Mursi’s Muslim Brotherhood group, designated in Egypt as a terrorist organisation, has called the Suez Canal expansion a “costly phantom.”
Wael Qandil, a prominent journalist known for sympathising with Muslim Brotherhood, has mocked the project.
He tweeted: “They will soon dig a ditch and call it the ‘new River Nile.’