Egyptian President Abdel Fattah el-Sisi met with Saudi Crown Prince Mohammed bin Salman in Cairo on Tuesday to address regional security, backing calls for secure navigation in the Red Sea as disruption from Yemen’s Houthi rebels continues to heavily impact Egypt’s foreign currency reserves through steep Suez Canal revenue losses.
Economic Fallout and Red Sea Navigation Strains
Regional security and trade routes sat at the center of high-level diplomatic talks in the Egyptian capital on Tuesday. Egyptian President Abdel Fattah el-Sisi backed Saudi calls for secure and unhindered navigation in the Red Sea during his meeting with Saudi Crown Prince Mohammed bin Salman, who is known as MBS.
The diplomatic engagement comes against a backdrop of severe economic strain for Cairo. Red Sea disruptions impact Egypt’s economy, forcing a steep drop in vital state revenues. According to figures provided by the Suez Canal Authority, Egypt lost approximately $7bn between 2023 and 2024, or about 60 percent of the Suez Canal’s revenues. Canal tolls serve as a primary source of foreign currency for the North African nation, making maritime stability an urgent domestic priority even as the country has so far avoided military action to stop the Houthi disruption of tanker traffic.
Cairo Talks and Strategic Regional Alignment
The Saudi delegation accompanying the crown prince to Cairo included Foreign Minister Prince Faisal bin Farhan and other senior officials, according to a statement by the Egyptian presidency. During the discussions, the leaders stressed the need to ensure freedom and security of navigation in the Bab el-Mandeb Strait and the Red Sea. MBS arrived in the Egyptian capital on Tuesday amid escalating tensions across the Middle East region and was received by Sisi at Cairo International Airport, according to the Saudi Press Agency.
The presidency statement affirmed that relations between Egypt and Saudi Arabia can only be exemplary within the Arab framework, and that the security of Saudi Arabia and the Gulf states is an integral part of Egypt’s national security
, while also emphasising efforts to achieve a sustainable political solution to the Yemen conflict. The visit came amid rapidly evolving developments in the region, including tensions in the Red Sea and Bab al-Mandab, as well as developments in Yemen, Sudan and Palestine. MBS last visited Cairo on October 15, 2024, when he held talks with Sisi on bilateral relations and regional and international issues.
Beyond bilateral ties, the leaders addressed the situation in Yemen, where the Saudi-backed Yemeni government has lost key territories including coastal areas vital for oil shipping to the Iran-aligned Houthis in recent days. The visit by Saudi leaders comes as Yemen’s Houthi rebels have captured Mocha port and effectively control the Bab al-Mandeb Strait. Despite Houthi assurances that maritime traffic in the Red Sea will not be affected, Saudi-linked ships have been targeted by the group in recent months.
Diplomatic Convergence and Palestinian Talks in Cairo
The diplomatic calendar in Cairo expanded simultaneously with the arrival of Palestinian President Mahmoud Abbas for a two-day official visit to Egypt, the Palestinian news agency Wafa reported. Abbas was received at Cairo International Airport by Egyptian Agriculture Minister Alaa Farouk and several Egyptian and Palestinian officials. He is scheduled to meet Sisi on Wednesday to discuss the latest developments concerning the Palestinian cause as well as Arab and international issues of common interest. The talks were also expected to address Egyptian-led efforts, in coordination with regional and international partners, to provide humanitarian assistance to Palestinians and support the reconstruction of areas devastated by the ongoing war, Wafa said. The visit came as Cairo steps up diplomatic contacts over regional developments. Abbas was also expected to meet Arab League Secretary-General Nabil Fahmy at the league’s headquarters during his visit. The Palestinian president was accompanied by Vice President Hussein al-Sheikh, Palestinian National Council Chairman Rawhi Fattouh, Fatah Central Committee member and intelligence chief Majed Faraj, and other officials.
The parallel diplomatic tracks highlight Cairo’s central role in managing overlapping regional crises. While el-Sisi and MBS coordinated on maritime security and Red Sea tanker traffic, Palestinian leadership focused its agenda on humanitarian access, reconstruction support, and broader Arab coordination.
Unresolved Maritime Pressures Ahead
Despite official assurances from Houthi forces that maritime traffic will remain unaffected, actual transit figures and trade disruptions tell a different story. The consolidation of Houthi control over Mocha port and the Bab al-Mandeb Strait leaves regional economies vulnerable to sustained maritime bottlenecks and ongoing security challenges.
With bilateral alignment reaffirmed between Cairo and Riyadh, attention shifts to whether diplomatic pressure and coordinated regional stances can restore commercial shipping confidence in the vital waterway before further economic damage hits national treasuries.