The Egyptian construction industry is expected to grow by 5.5% in real terms in 2026, supported by an easing of interest rates in a bid to bring down the overall inflation rates, along with government efforts to boost the Foreign Direct Investment (FDI) in the country. In February 2026, the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) reduced the overnight deposit rate to 19%, the overnight lending rate to 20%, and the main operation and credit and discount rates to 19.5%, marking a 1% reduction across key policy rates. Additionally, the CBE announced that both headline and core annual inflation declined further in January 2026, reaching 11.9% and 11.2%, respectively, down from 12.3% and 11.8% in December 2025. This is well in line with the deceleration inflation trend observed throughout 2025, where average headline and core inflation fell sharply to 14.1% and 12.1% in 2025, compared with 28.3% and 27.2% respectively in 2024. In another development, in February 2026, the government reported that it aims to double its annual FDI inflow from the annual average level of around EGP611.5 billion ($12 billion). This will be done by reducing the time required for investors to obtain licenses, with plans to shorten the process from an average of 24 months to fewer than 90 days through the introduction of a unified digital platform. The government is also planning to prioritize foreign trade by reducing the time required for customs clearance of goods from 16 days to 5 days, with the aim of reducing it to two days in the future. These measures are intended to boost the overall investment in new projects in the country. However, the country may experience uncertainty amid higher government debt along with a rising trade deficit, coupled with a rise in energy prices amid the ongoing war between the Middle Eastern and the US.
Over the remainder of the forecast period, the construction industry’s output is expected to record an annual average growth of 6.7% between 2027 and 2030, supported by investments in energy projects, coupled with the government’s aim to significantly increase the contribution of solar and wind energy, targeting a total of 16.1GW of energy production from these sources by 2029. Previously, in December 2025, the Spanish infrastructure company, Abengoa announced that it plans to construct an integrated renewable energy complex in the country. This will be developed with an estimated cost of EGP764.4 billion ($15 billion) and will include the construction of solar and wind plants with a total installed capacity of 10GW.
Over the remainder of the forecast period, the construction industry’s output is expected to record an annual average growth of 6.7% between 2027 and 2030, supported by investments in energy projects, coupled with the government’s aim to significantly increase the contribution of solar and wind energy, targeting a total of 16.1GW of energy production from these sources by 2029. Previously, in December 2025, the Spanish infrastructure company, Abengoa announced that it plans to construct an integrated renewable energy complex in the country. This will be developed with an estimated cost of EGP764.4 billion ($15 billion) and will include the construction of solar and wind plants with a total installed capacity of 10GW.
The Construction in Egypt - Key Trends and Opportunities to 2030 (Q1 2026) 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.
Report Scope
This report provides a comprehensive analysis of the construction industry in Egypt. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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 our 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 business strategies using the analyst'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
