Egypt Authorizes Saudi Defense Against Houthi Attacks — SkimNews
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- Egypt’s parliament voted after two postponements to authorize President Sisi to take “necessary measures” to defend Saudi Arabia against Houthi missile and drone attacks; abstaining lawmakers cited undisclosed mission length, cost and troop numbers.
- Saudi Arabia keeps $10.3 billion parked at Egypt’s central bank; Kuwait and Qatar bring the total to about $18 billion, close to one-third of Egypt’s $57 billion reserves, although no public indication ties Riyadh’s deposits to military support.
- Egypt’s debt service takes about 64% of this year’s budget, with interest alone exceeding combined state spending on education, health, wages and subsidies; the pound hit a record low of 56 to the dollar.
- Sisi calls the authorization defensive and excludes an attack on Yemen, while top diplomat Badr Abdelatty says political solutions must be pursued, keeping Cairo’s support for Riyadh short of joining the war.
- Suez Canal receipts fell from $10.2 billion in 2023 to about $4 billion in 2024 as Houthi attacks forced vessels around Africa; the canal authority is hoping for $8 billion in fiscal year 2026/27, a goal that assumes the Red Sea calms down.
- Houthis seized the Yemeni port of Mocha and island of Mayun in September, gaining a grip on Bab al-Mandeb, and a senior Houthi figure called Egypt’s authorization a “declaration of war” that puts Cairo in the line of fire.
- Iran has drawn up plans to strike undersea cables, while its top security official warned that U.S.-linked Gulf data centers and oil facilities could be targeted; Egypt was already hit on July 29, when a drone set two vessels ablaze at a floating gas terminal in Damietta.
Why it matters: Saudi Arabia’s $10.3 billion deposit anchors roughly $18 billion in Gulf-held Egyptian reserves, giving Riyadh leverage as 64% of Egypt’s budget goes to debt service. Yet backing Riyadh does not fix Suez: receipts fell from $10.2 billion in 2023 to about $4 billion in 2024, while Houthi control of Bab al-Mandeb pressures the route.
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