The European Union has approved a €20 million ($23 million) military assistance package for Egypt through the European Peace Facility (EPF) to strengthen the country’s security and defense capabilities. The funding is intended to enhance Egypt’s ability to protect civilians, maintain national stability, and improve maritime security operations in the Mediterranean Sea and the Red Sea, two strategically important waterways for global commerce and regional security.
The assistance package reflects the growing partnership between the European Union and Egypt following the strategic and comprehensive partnership agreement signed in 2024. The agreement covers a wide range of areas, including economic cooperation, trade, migration management, security collaboration, and human development. The latest funding also builds on discussions held during the first EU-Egypt security and defense dialogue in Cairo in March 2026, highlighting stronger defense cooperation between both sides.
Maritime security remains a critical priority for Egypt because of its geographic position between the Mediterranean and the Red Sea. The country depends heavily on maritime trade routes for foreign exchange earnings, energy supplies, and economic growth. The Suez Canal, one of the world’s busiest shipping corridors, handles approximately 12% of global trade and serves as a major source of revenue for the Egyptian economy.
Recent security disruptions near the Bab el-Mandeb Strait negatively affected shipping traffic and forced many vessels to use longer routes around the Cape of Good Hope. These disruptions significantly reduced Suez Canal revenues, costing Egypt nearly $800 million per month and placing additional pressure on the country’s foreign currency reserves. Improved security conditions during late 2025 and early 2026 have contributed to a gradual recovery in shipping activity, with canal revenues showing signs of improvement.
Beyond shipping, Egypt is also focused on protecting its growing energy assets in the Mediterranean. The development of the Zohr offshore gas field has strengthened Egypt’s position in the regional energy market, making the security of offshore infrastructure increasingly important. To support these objectives, the country has continued investing in naval modernization and military infrastructure, including upgrades to key naval and military bases along both coastlines.
With this latest allocation, total EU support provided to Egypt through the European Peace Facility has reached €40 million since 2024, underscoring the expanding security partnership between Brussels and Cairo and the shared interest in protecting strategic trade and energy corridors.
