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Construction in Egypt - Key Trends and Opportunities to 2025

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    Report

  • 52 Pages
  • February 2021
  • Region: Egypt
  • GlobalData
  • ID: 5275102
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Summary

The outbreak of the Coronavirus (COVID-19) pandemic has weighed on the Egyptian construction industry, which is expected to have expanded by 2.7% in real terms in 2020. The Egyptian construction industry had been growing at a fast pace prior to the pandemic, growing at an annual average rate of 9.6% between 2016-2019, and driven by the construction of mega projects, which includes new cities, transport infrastructure and residential buildings.

The industry was temporarily affected in Q2 2020, due to the pandemic’s impact on construction progress and investor confidence, as well as the government’s decisions to temporarily suspend the issuance of new construction licenses for private buildings across most cities for six months. According to the Central Bank of Egypt (CBE), the industry ‘s value-add contracted by 5.7% year on year (YoY) in Q2 2020, before recovering slowly in Q3 2020 with growth of 2.6% YoY. Large infrastructure projects, including the New Administrative Capital (NAC), New Alamein and New Galala, which are highly labor intensive, avoided some of the disruptions experienced by other sectors in the economy, and continued to work on schedule. Without this ongoing work on public megaprojects, the slowdown would have been more severe. The government is focused on increasing public spending to implement new projects and provide better services. In November 2020, the government announced that it had increased the amount of planned public investments in FY2020/2021 (which started in July 2020) by 70%, to reach EGP595 billion (US$34.2 billion), with a large share of these investments belonging to the health and education sectors. The government is also focusing on several promising sectors such as agriculture, food industries, communications and information technology, construction, and manufacturing. Of the planned total investments, EGP47.1 billion (US$2.7 billion) will be directed towards the development of Upper Egypt governorates, marking an increase of 51% compared to the previous year.

The publisher expects the industry to rebound with growth of 12.7% in 2021, before registering average annual growth of 10.2% before 2022-2025. The industry’s growth over the forecast period will be supported by investments in the development of fourth generation cities. In November 2020, the government allocated EGP90 billion (US$5.2 billion) for the development of infrastructure of fourth-generation cities in the country. Of the total, EGP57 billion (US$3.3 billion) is allocated for the construction of electricity, roads, water and wastewater and housing projects across 21 existing urban cities. The government also plans to invest EGP512 billion (US$32 billion) on the Cairo metro expansion over the next four years, and EGP325.5 billion (US$19 billion) on the implementation of 11 new petrochemical projects until 2035. These projects will support investments in the infrastructure and petrochemical sectors and are expected to drive growth across the construction value chain.

This report provides detailed market analysis, information, and insights into the Egyptian construction industry, including -
  • The Egyptian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Egyptian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Egypt. It provides -
  • Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Egypt, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using the publisher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 Construction
List of Tables
Table 1: Construction Industry Key Data
Table 2: Egypt, Key Economic Indicators
Table 3: Egypt, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Egypt, Top Commercial Construction Projects by Value
Table 5: Egypt, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Egypt, Top Industrial Construction Projects by Value
Table 7: Egypt, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Egypt, Top Infrastructure Construction Projects by Value
Table 9: Egypt, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Egypt, Top Energy and Utilities Construction Projects by Value
Table 11: Egypt, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Egypt, Top Institutional Construction Projects by Value
Table 13: Egypt, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: Egypt, Top Residential Construction Projects by Value
Table 15: Egypt, Key Contractors
Table 16: Egypt, Key Consultants
Table 17: Egypt, Construction Output Value (Real, US$ Million)
Table 18: Egypt, Construction Output Value (Nominal, EGP Billion)
Table 19: Construction Market Definitions
List of Figures
Figure 1: Middle East and Africa, Construction Output (Real % Change), 2020 and 2021
Figure 2: Egypt, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Egypt, COVID-19 Confirmed Cases
Figure 4: Egypt, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 5: Egypt, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 6: Egypt, Construction Value-Add (EGP Billion, 2016-2017 Base Prices), % Change YoY
Figure 7: Egypt, Gross Capital Formation (EGP Billion, at Constant 2016-2017 Base Prices), % Change YoY
Figure 8: Egypt, Construction Projects Momentum Index
Figure 9: Egypt, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 10: Egypt, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 11: Egypt, Value-Add of Hotels and Restaurants (EGP Billion, 2016-2017 Base Prices), % Change YoY
Figure 12: Egypt, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 13: Egypt, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 14: Egypt, Manufacturing Value-Add (EGP Billion, 2016-2017 Base Prices), % Change YoY
Figure 15: Egypt, Total Exports (US$ Million), % Change YoY
Figure 16: Egypt, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 17: Egypt, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 18: Egypt, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 19: Egypt, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 20: Egypt, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 21: Egypt, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 22: Egypt, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 23: Egypt, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: Egypt, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 25: Egypt, Headquarters of Key Consultants (% of Total Project Pipeline)