Egypt Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Egypt Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Summary

GlobalData expects Egypt’s construction industry to expand by 4.3% in 2022, a relatively slow pace of growth compared to the average rate in recent years. This reflects headwinds caused by high energy and construction materials costs, supply chain disruption, and the devaluation of the Egyptian Pound. Assuming that there is an improvement in macroeconomic stability, growth in the industry is expected to pick up again from 2023, supported by investment in the transport, renewable energy, and housing sectors, as well as in major projects such as New Administrative Capital (NAC), New Alamein, and New Galala. In November 2022, Egypt's Suez Canal Economic Zone signed energy agreements and cooperation protocols worth EGP1.5 trillion ($83 billion) in the renewable energy sector, at the UN Conference of the Parties (COP27). Of the total, 20% is cash investment while the remaining 80% is technology transfer investment. At the COP27, the Asian Infrastructure Investment Bank (AIIB) signed a partnership agreement with Egypt’s Ministry of Electricity and Renewable Energy, Ministry of Environment, and the Ministry of International Cooperation, to support the country’s efforts to boost renewable energy and stimulate climate action, through the “Nexus on Water, Food and Energy (NFWE)” program. The AIIB reported that it will contribute to the energy pillar of the NFWE and mobilize at least EGP175.1 billion (USD10 billion) in investment, installing 10GW of solar and wind energy in the country by 2028.

Forecast-period growth in the industry will also be supported by the government’s focus on attracting foreign investment and enhancing the role of the private sector as a partner in various developments. In August 2022, the Central Bank of Egypt (CBE) reported that net Foreign Direct Investment (FDI) in Egypt rose by 53% year-on-year (YoY) in the first nine months of Financial Year (FY) 2021/2022 (July 2021 to March 2022), to reach EGP84.1 billion ($4.8 billion). Previously, in June 2022, the Minister of Finance reported that the government aims to attract EGP175.1 billion ($10 billion) in FDI annually in the next four years.

The 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 (2017-2021) and forecast (2022-2026) 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 GlobalData'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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.