On 26 July 1956, Nasser gave a speech in Alexandria announcing the nationalization of the Suez Canal Company as a means to fund the Aswan Dam project in light of the British–American withdrawal. In the speech, he denounced British imperialism in Egypt and British control over the canal company's profits, and upheld that the Egyptian people had a right to sovereignty over the waterway, especially since "120,000 Egyptians had died (sic)" building it. The motion was technically in breach of the international agreement he had signed with the UK on 19 October 1954, although he ensured that all existing stockholders would be paid off.

What did Nasser propose to do with funds from the nationalized Suez Canal?