Egypt, Japan pen EGP 1B grant to build 1st diving support vessel for SCA

Updated 12/28/2025 3:25:00 PM

Arab Finance: Egypt and Japan have signed an executive agreement for a Japan International Cooperation Agency (JICA) grant worth $22 million to finance the construction and supply of the first diving support vessel for the Suez Canal Authority’s (SCA) fleet, as per a statement.

The grant comes as part of the long-standing cooperation between Egypt and Japan and follows a series of bilateral consultations, alongside efforts by the Ministry of Planning and Economic Development and International Cooperation to deepen ties between the two countries.

Under the agreement, the Japanese government, through JICA, will finance the construction and supply of a diving support vessel designed to enhance navigational safety in the Suez Canal, support towing operations, assist ships during maneuvering, and strengthen rapid emergency response capabilities, contributing to the canal’s safe and sustainable operation.

Ministry of Planning and Economic Development and International Cooperation Rania Al-Mashat said the agreement represents a qualitative partnership with Japan, reflecting the depth and diversity of relations between the two countries across several strategic fields.

She noted that the project aligns with directives from President Abdel Fattah El?Sisi to advance bilateral relations and leverage Japanese development expertise and technology in support of Egypt’s development priorities.

She added that the agreement focuses on enhancing the capabilities of the Suez Canal Authority, which manages a global waterway handling around 12% of global trade, underscoring the state’s commitment to continuously developing navigation through the canal and reinforcing its competitive position as a hub for international trade.

Al-Mashat highlighted the strategic importance of the Suez Canal as a key contributor to Egypt’s gross domestic product, noting that while regional tensions since October 2023 had significantly reduced navigation traffic, the peace agreement brokered by President El-Sisi has supported a recovery in canal activity.

Navigation through the canal recorded growth of 8.6% in the first quarter (Q1) of the current fiscal year (FY) 2025/2026, alongside a gradual return of stability to the Red Sea region.