Importance of suez canal

Suez Canal connects the Mediterranean Sea and the Red Sea covering a distance of 160 km. It was constructed in 1969 by a French company. It has a width of 62 km depth of 10 m it accommodates 20,000 ships, 80,000 tonnes in a year and it is used by European countries, Middle East countries for handling exports and imports.

Importance of Suez Canal

Promotion of trade by exports, imports, passengers for Africa, the Middle East, and Europe.
Promotion of transport and reducing transport costs for Europe, the Middle East, and Africa.
Source of government revenue by taxing people and companies like custom duties and at ports like port Said, Alexandria.

Growth of urban centres because of population increase and industries activities like port Said and port Alexandria.
Development of the tourism industry like in Sinai peninsular, Persian Gulf, construction work, and because of increased income like Mt. Olive.
Resource exploitation like mining of oil, iron ore around the Red Sea, Persian Gulf (Sinai Peninsula)
Employment opportunities like in the transport sector, industrial activities, trade, mining activities leading to increased standards of living.
Land reclamation by promoting irrigation in the dry area and controlling floods, pests, and diseases attracting people for settlement and agriculture.

Source of water for domestic, industrial purposes, irrigation, and for dumping wastes and sewage e.g. ports Sayyid.
Education and research because of landforms, construction work leading to better skills and technology.
Environmental protection by providing habitats for plant species and animal species through climate modification in the surrounding areas.
International relations and regional corporation between Europe, Africa and Asia.

Economic diversification influencing other economic activities like trade, mining reducing the dependency burden
Development of industries e.g. shipbuilding, oil refining.