Back to the complete issue
Sunday, 2 January 2022

Israel-UAE’s answer to the Suez Canal just got blocked

Suez Canal rival nixed by Israeli gov’t: A proposed oil transport corridor between the UAE and Israel that could have undermined the Suez Canal’s role as a major trade artery appears to have been spiked. Israeli environment minister Tamar Zandberg said last week that the agreement to use Israel as a transit country for Emirati oil heading to Europe has been blocked by the justice ministry, according to the Associated Press.

The accord could have allowed one of the region’s biggest oil producers to skirt the Suez Canal and dent its revenues: A secret agreement between Israel and the UAE last year would have seen Emirati oil delivered via tankers to Israel’s Red Sea port of Eilat before being sent to the Mediterranean via the existing Eilat-Ashkelon pipeline and onwards to Europe. The plan was positioned by Israel’s state-owned Europe Asia Pipeline Co (EAPC) and its new partner Med-Red — a consortium of Emirati and Israeli companies — as offering a quicker, less costly alternative to the Suez Canal.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.