Prior to the Coronavirus (COVID-19) outbreak, the construction industry in Egypt was growing at a robust pace. Although the country was not immune to the COVID-19 crisis, the construction industry was not affected to the same extent as other markets in Middle East and North Africa (MENA) region. Egypt’s construction industry expanded by 3% in 2020 - although positive, it was a marked slowdown compared to recent years, reflecting the disruption caused by the COVID-19 pandemic and the six-month suspension of the issuance of new construction licenses for private buildings across most cities. Thus, the industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$33.7 billion in 2019 to US$34.7 billion in 2020.
Work on large infrastructure projects, including the New Administrative Capital (NAC), New Alamein and New Galala, which are highly labor intensive, ensured that construction 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.
The publisher expects the industry to rebound with growth of 10.7% in 2021, before registering an average annual growth of 10.2% between 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.
Work on large infrastructure projects, including the New Administrative Capital (NAC), New Alamein and New Galala, which are highly labor intensive, ensured that construction 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.
The publisher expects the industry to rebound with growth of 10.7% in 2021, before registering an average annual growth of 10.2% between 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.
the publisher's Construction in Egypt - Key Trends and Opportunities to 2025 (H2 2021) report provides detailed market analysis, information and insights into Egypt’s construction industry, including:
- Egypt’s 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 Egypt’s 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.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
