El-Sisi Warns of Severe Economic Setbacks for Egypt from Gaza War Involvement

President El-Sisi Reiterates Warnings on Gaza Conflict's Economic Toll

President Abdel Fattah El-Sisi has consistently warned against Egypt's direct involvement in the ongoing conflict in Gaza, underscoring the severe economic setbacks such a war would inflict upon the nation. His statements emphasize that any escalation would jeopardize Egypt's financial stability and development trajectory, which is already navigating complex regional and global economic challenges.

The President's Stance on Regional Conflict

Speaking at an annual Armed Forces' symposium on October 19, 2025, President El-Sisi cautioned that 'on the day conflict breaks out, every hour sets the country back by months and years.' He further elaborated, 'I'm talking about the hour, not the day, month, or year,' criticizing viewpoints advocating for Egypt's direct military engagement, which he stated would risk 'the country's resources, its future, and the future of its youth.' This sentiment has been a recurring theme in his addresses, including earlier remarks in October 2023 at the Military Academy, where he stressed the importance of dealing rationally with the issue to achieve peace at a manageable cost.

President El-Sisi has also consistently rejected the forced displacement of Palestinians from Gaza into Egypt's Sinai Peninsula, viewing it as a threat to Egyptian national security and a 'liquidation' of the Palestinian cause. In August 2025, he described the war in Gaza as 'no longer merely a war to achieve political goals or release hostages,' but rather 'a war of starvation and genocide,' aimed at eradicating the Palestinian cause.

Economic Repercussions for Egypt

The potential economic fallout from an expanded conflict is a primary concern for Egypt. Key sectors vital to the nation's economy, such as tourism and Suez Canal revenues, have already experienced significant negative impacts due to regional instability.

• The United Nations Development Programme (UNDP) estimated in May 2024 that a medium-intensity scenario could lead to a decline of approximately $9.9 billion in tourism and Suez Canal revenues for fiscal years 2023-24 and 2024-25. This figure could rise to $13.7 billion if the war intensifies with broader regional involvement.
• Egypt's Gross Domestic Product (GDP) is projected to be lower by 2.6% to 3.0% under various conflict intensity scenarios.
• The unemployment rate is also expected to increase, potentially rising from 7.8% to between 8.7% and 9.1%.
• The conflict has exacerbated existing economic vulnerabilities, including a high external debt, which stood at approximately $152.9 billion as of 2024, and a cost-of-living crisis.
• Disruptions to trade routes, particularly in the Red Sea due to Houthi attacks, have significantly reduced Suez Canal traffic and revenues, further straining Egypt's resources.

Egypt's Diplomatic Efforts and Regional Role

Amid these warnings, Egypt has maintained a consistent diplomatic role, advocating for de-escalation and a peaceful resolution. President El-Sisi has called for an immediate ceasefire, unimpeded humanitarian aid access to Gaza, and the implementation of a two-state solution based on international legitimacy resolutions. Egypt has also played a crucial mediating role in efforts to secure a ceasefire and facilitate aid delivery, hosting summits and engaging with international partners.

The Egyptian government's efforts reflect a strategic balancing act, aiming to protect its national interests and economic stability while upholding its commitment to the Palestinian cause and regional peace.