Middle East and Africa Roads and Highways Infrastructure Construction Market Trends and Insights
Sovereign-Backed Transport Corridors and Giga Projects Drive Infrastructure Investment
State-backed transport spending remains the main driver of project flow in the Middle East and Africa roads and highways infrastructure construction market, as the largest programs still sit within formal national development plans. In Riyadh, the Royal Commission for Riyadh City launched the fourth group of the Main and Ring Road Axes Development Program, adding 40 kilometers of corridors, 33 bridges, and 5 tunnels with a capacity for more than 950,000 vehicles per day. In the United Arab Emirates, the Ministry of Energy and Infrastructure is administering a USD 46.2 billion roads and transport plan through 2030, which shows that highway works remain central to long-term federal mobility policy. These programs matter because they create a visible base level of demand for contractors, equipment suppliers, and engineering firms, even when project priorities shift between urban and intercity routes. The result is that the market is not relying on isolated road awards, but on multi-year public investment pipelines that continue to feed follow-on packages and related utility works across the region.Freight Corridor and Port Connectivity Upgrades Strengthen Regional Logistics
Freight corridor spending is strengthening the Middle East and Africa roads and highways infrastructure construction market, as more road projects are linked directly to trade access and border efficiency. Egypt activated 8 international logistics corridors under the United Nations Convention on International Road Transport in July 2026, tying roads more closely to dry ports, industrial zones, and the Suez Canal trade system. Egypt also moved ahead with the upgrade of the 800-kilometer International Coastal Road from Port Said to Salloum, including 6 lanes and dedicated concrete truck lanes that improve freight separation on a major port route. Tanzania set out a USD 985 million works budget for the fiscal year 2026 to 2027 that includes completing national roads to bitumen standard and advancing cross-border links with neighboring countries. These corridor projects tend to hold strategic value beyond a single city, so they are more likely to remain funded and phased over several years than short, standalone urban expansions.Fiscal Constraints and Foreign Exchange Volatility Limit Infrastructure Spending
Fiscal pressure is creating an uneven growth pattern across the Middle East and Africa roads and highways infrastructure construction market because countries with strong sovereign balance sheets are moving faster than those facing budget compression. In Egypt, the General Authority for Roads and Bridges operated with a fiscal year 2025 to 2026 budget of USD 484 million, and the funding gap led to the deferral of 46 road and bridge projects. In South Africa, the South African National Roads Agency Limited faced a budget cut in the current financial year while also taking on 3,099 kilometers of transferred provincial roads, further straining a system already short of maintenance funding. South Africa’s own planning documents also show that available funding covers less than 50% of road requirements, which makes prioritization unavoidable even when transport demand remains high. This means that outside the Gulf, project timing can still be slowed by fiscal limits even where the policy case for better highways remains clear.Other drivers and restraints analyzed in the detailed report include:
- Public-Private Partnership Concessions Accelerate Road Development
- Urban Expansion Increases Mobility Infrastructure Demand
- Limited Contractor Capacity and Imported Material Dependence Increase Project Risks
Segment Analysis
Roads held a 74.60% share in 2025, making them the largest component of the Middle East and Africa roads and highways infrastructure construction market and confirming that standard highway and corridor works still account for the majority of regional spending. This lead reflects the weight of national programs that continue to prioritize carriageway expansion, lane additions, and freight access over narrower standalone civil works. Egypt’s upgrade of the 800-kilometer International Coastal Road shows this clearly, as the project expands the route to 6 lanes and adds dedicated concrete truck lanes along a strategic Mediterranean freight corridor. Road packages also remain easier to phase across long corridors, which allows governments to split awards and keep progress visible over multiple budget cycles. That project structure aligns with the extensive road network across Saudi Arabia, Egypt, and South Africa, where long route continuity matters as much as city access.Bridges/overpass are forecast to grow at a 9.60% CAGR through 2031, making them the fastest-moving components as urban road systems become more layered and traffic management shifts toward grade-separated designs. The Latifa bint Hamdan Corridor in Dubai includes 7 bridges with a combined length of 2,300 meters and 8 tunnels with a combined length of 900 meters, all bundled into one USD 545 million contract, which shows how elevated structures are now being bundled into full corridor upgrades. Riyadh’s fourth group of the Main and Ring Road Axes Development Program also includes 33 bridges and 5 tunnels, reflecting the same shift in dense city corridors. Tunnels and other subsegments remain smaller in value terms, but they are appearing more often in standard road packages rather than remaining isolated specialties. This is pushing the Middle East and Africa roads and highways infrastructure construction market toward more technically demanding package design. It also highlights the advantage of contractors that can handle structural design, traffic staging, and utility coordination in a single delivery model.
New construction accounted for 82.10% of the market in 2025, giving it the largest share in the Middle East and Africa roads and highways infrastructure construction market, and reflecting the strong greenfield bias of several current national road programs. Governments are still extending networks, adding missing links, and developing new toll or freight routes, rather than focusing solely on rehabilitation. Senegal’s Mbour to Fatick to Kaolack toll highway illustrates that pattern, with construction starting in April 2026 on a 100-kilometer greenfield route valued at USD 738 million. Greenfield activity also aligns with the policy direction in the Gulf, where corridor buildout is tied to industrial zones, new urban nodes, and federal transportation performance targets. This keeps new construction ahead because several countries are still expanding road capacity at the national network level rather than only optimizing existing pavement.
Renovation is projected to grow at an 8.90% CAGR through 2031, which shows that the asset base is aging enough to create a second line of demand in the Middle East and Africa roads and highways infrastructure construction market. Egypt’s International Coastal Road upgrade is one example of rehabilitation at major scale, since it reworks an existing route into a broader 6-lane freight corridor. In South Africa, government reporting showed that the South African National Roads Agency Limited's broader spending program included capital projects on non-toll roads and resurfacing across 2,000 kilometers of the national network. Renovation is therefore no longer a secondary activity tied solely to patching or maintenance, but an increasingly important response to traffic wear, deferred upkeep, and climate-related pavement stress. That makes rehabilitation demand more structural than cyclical in countries where large road networks were already built in earlier phases. It also means that contractors with experience in resurfacing, pavement strengthening, and staged traffic management can capture a growing share of future awards.
Complete Report Scope:
- By Component
- Road
- Bridges/Overpass
- Tunnels
- Others
- By Construction Type
- New Construction
- Renovation
- By Investment Source
- Public
- Private
- Public-Private Partnership
- By Type
- National
- State
- Local
- By Country
- United Arab Emirates
- Saudi Arabia
- South Africa
- Egypt
- Rest of Middle East and Africa
List of Companies Covered in this Report:
- Bechtel Corporation
- VINCI SA
- Orascom Construction PLC
- Larsen & Toubro Limited
- China State Construction Engineering Corporation Ltd.
- China Communications Construction Company Limited
- China Railway Construction Corporation Limited
- Fluor Corporation
- BESIX Group
- Eiffage SA
- Bouygues Travaux Publics
- Saudi Binladin Group
- Nesma & Partners Contracting Co.
- Al-Ayuni Investment & Contracting Company
- Arab Contractors
- Consolidated Contractors Company (CCC)
- Shikun & Binui Ltd.
- Raubex Group Limited
- Strabag SE
- Webuild S.p.A.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Bechtel Corporation
- VINCI SA
- Orascom Construction PLC
- Larsen & Toubro Limited
- China State Construction Engineering Corporation Ltd.
- China Communications Construction Company Limited
- China Railway Construction Corporation Limited
- Fluor Corporation
- BESIX Group
- Eiffage SA
- Bouygues Travaux Publics
- Saudi Binladin Group
- Nesma & Partners Contracting Co.
- Al-Ayuni Investment & Contracting Company
- Arab Contractors
- Consolidated Contractors Company (CCC)
- Shikun & Binui Ltd.
- Raubex Group Limited
- Strabag SE
- Webuild S.p.A.

