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How was the original Suez Canal financed?
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Suez Canal
Ships in the Suez Canal in Egypt. One of the world's most important shipping lanes, the Suez Canal connects the Mediterranean Sea and the Red Sea.
The Suez Canal was financed through the Suez Canal Company, which was incorporated as a joint-stock company with its headquarters in Paris.12
Ferdinand de Lesseps, the diplomat who spearheaded the project, sought international participation and successfully encouraged the French public to subscribe to more than half of the necessary capital. At the time of the company's organization in 1858, the share distribution was as follows:13
- France: Held 52 percent of the shares.12
- Egypt: Held 44 percent of the shares, taken up by Saʿīd Pasha.12
In 1875, facing financial difficulties, the Egyptian viceroy Ismāʿīl Pasha sold his country's entire holding of 176,602 shares. These were purchased by the British government at the instigation of Prime Minister Benjamin Disraeli, making Great Britain the largest shareholder in the company.132