Egypt Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Egypt Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Summary

GlobalData expects the Egyptian construction industry to grow by 4.8% in 2023 - down from annual growth of 5.5% in 2022, due to elevated energy and construction materials costs, supply chain disruption, and the devaluation of the Egyptian Pound. Moreover, the falling public investment in construction industry is expected to weigh on growth momentum. According to the Ministry of Planning and Economic Development (MPED), total public investment in the construction industry fell by 18% in Q1 2023, falling from EGP9.3 billion ($412.3 million) in Q1 2022 to EGP7.6 billion ($336.9 million) in Q1 2023; this was preceded by a year-on-year (Y-o-Y) decline of 26.2% in 2022. However, the government expects an increase in foreign direct investment (FDI) will provide support to growth. In July 2023, the Central Bank of Egypt (CBE), announced that FDI in Egypt rose by 51.8% in 2022. The government’s goal is to attract FDI of EGP225.6 billion ($10 billion) annually by 2026.

Over the remainder of the forecast period, the Egyptian construction industry is expected to register an annual average growth of 9.2% during 2024-27, supported by investment in transportation, renewable energy, housing, water and sewage infrastructure projects. In March 2023, China-based port operator, Hutchison Ports, announced it plans to construct two container terminals - one in Ain Sokhna Port and the other one in Port of Alexandria. For the construction of each terminal, the investment required is EGP15.8 billion ($700 million), bringing the total project investment to EGP31.6 billion ($1.4 billion). Moreover, under Egypt Vision 2030, the government plans to reduce greenhouse gases (GHGs) by 10% from the energy sector, including oil and gas, by 2030 compared to 2016 levels. The forecast period growth in the infrastructure construction sector will be supported by the government’s aim of investing EGP232.3 billion ($10.3 billion) on the expansion of the road network from 23,500km in 2014 to about 30,500km by 2024, and the investment of EGP189.5 billion ($8.4 billion) on increasing the rail network from 9,570km in 2020 to 10,200km by 2024 and subsequently to 11,530km by 2030.

The 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.

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.