Egypt Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Egypt Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects the Egyptian construction industry to grow by 4.8% in 2023 - slightly down from the growth of 5.5% recorded in 2022, due to high energy and construction materials costs and the devaluation of the Egyptian Pound. According to the Ministry of Planning and Economic Development (MPED), the construction industry’s value add grew by 5.3% year-on-year (YoY) in Q4 2022, preceded by Y-o-Y growth of 6.7% in Q3 and 3.9% in Q2 2022.

Assuming that there is an improvement in macroeconomic stability, activity in the industry is expected to pick up over the remainder of the forecast period. Between 2024 and 2027, the Egyptian construction industry is expected to register an annual average growth of 9.2%, supported by investment in transport, renewable energy, housing, water and sewage infrastructure projects. Under the First Phase of Egypt’s water desalination program, the Sovereign Fund of Egypt (TSFE) prequalified 17 consortia in May 2023 to be invited for the tendering process of the development of a number of seawater desalination plants powered by renewable energy sources in locations across Egypt. This is part of Egypt’s water desalination program that entails the launch of several water desalination projects covering a total planned capacity of 8.85 million m3 per day by 2050 of which the first phase is expected to reach its completion by 2025 that will cover a planned capacity of 3.35 million m3 per day.

In another positive development, the construction industry will be supported by investment in slum redevelopment, in line with the government’s target of making the country slum-free by 2030. To achieve this, in December 2022, Egypt's Urban Development Fund (UDF) launched a nation-wide mega urban housing project that involves an investment of EGP600 billion ($26.6 billion) on a nationwide slum redevelopment program until 2027. Further developments as part of the program include the New Urban Communities Authority (NUCA) construction of a mega residential development on 31ha of land in Nasser City, west of Asyut, Egypt. With an investment of EGP18 billion ($800 million), the project is expected to be completed in 2025

This report provides detailed market analysis, information and insights into the Egypt 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 (2018-2022) and forecast (2023-2027) 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.