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

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

Summary

The Tunisian construction industry is expected to contract by 2.2% in real terms in 2023, with the gloomy outlook reflecting wider economic challenges such as high unemployment, rising inflationary pressure, and unsustainable financial imbalances. According to the National Institute of Statistics (INS), the construction industry’s value add declined sharply by 12% year on year (YoY) in Q4 2022, preceded by Y-o-Y decline of 3.3% in Q3 and 11.6% in Q2 2022. The country is currently facing both political and financial crises, and banks in Tunisia are struggling with liquidity amid delays in reaching an agreement with the IMF over a 48-month program worth TND6.5 billion ($1.9 billion). However, the International Islamic Trade Finance Corporation signed three trade agreements in March 2023 worth TND895.3 million ($280million) with Tunisia to support the economy and major sectors such as gas, energy, and pharmaceuticals.

GlobalData expects the Tunisian construction industry to recover in 2024, expanding at an annual average rate of 3.3% between 2024 and 2027, supported by investment in energy and housing sector and an increase in foreign direct investment (FDI). According to the preliminary data published by the Foreign Investment Promotion Agency (FIPA), FDI in the country rose by 18.4% in 2022, increasing from TND1.9 billion ($547.5 million) in 2021 to TND2.2 billion ($648.3 million) that year. In January 2023, the government unveiled the 2023-25 Development Plan to support economic growth, particularly investment in industry, and enhancing phosphate production. Under the plan, the government is planning to allow farming land for production of solar and wind energy. In the energy and utility construction sector, output will continue to be supported by the government’s plan to increase renewable energy production. The government aims to generate 30% of electricity from renewable sources and reduce its carbon intensity by 41% by 2030. In January 2023, Tunisia’s Ministry of Energy, Mines and Renewable Energies launched two new tenders for the development of combine 1GW capacity of solar PV projects.

This report provides detailed market analysis, information and insights into the Tunisian construction industry, including -

• The Tunisian 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 Tunisian 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 Tunisia. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Tunisia, 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.