Egypt Construction Market Size, Trends and Forecast by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Construction, 2022-2026

Egypt Construction Market Size, Trends and Forecast by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Construction, 2022-2026

Summary

The Egyptian construction industry grew by an estimated 8% in real terms in 2021, compared to growth of 3% in 2020. The industry’s output in 2021 was supported by a recovery in the country’s economic conditions and ongoing construction of large infrastructure projects, such as the New Administrative Capital (NAC), New Alamein and New Galala. As a result, the Egyptian construction industry grew by 8.5% year on year (YoY) in the first three quarters of 2021, according to the Central Bank of Egypt (CBE), and positive growth momentum is expected to be maintained in the coming quarters, supported by a rapid vaccination program and the subsequent relaxation of restrictions.

GlobalData expects the industry to grow by 10.4% this year, supported by increased investments in infrastructure and energy projects. In the FY2021/2022 Budget, the government allocated EGP245 billion ($15.6 billion) towards the transport sector, including roads, bridges and river ports, as well as projects under the National Authority for Tunnels. In October 2021, Asian Infrastructure Investment Bank (AIIB) and OPEC Fund for International Development (OPEC Fund) provided a fund of EGP3.1 billion ($200 million) to the National Bank of Egypt (NBE) to help in the development of the country’s infrastructure. In addition to this, in October 2021, the World Bank approved a loan of EGP5.6 billion ($360 million) to support the country’s economy.

Over the remainder of the forecast period, the industry is expected to register an annual average growth rate of 10.6% between 2023-2026, supported by investments in the development of fourth-generation cities. In November 2020, the government allocated EGP90 billion ($5.2 billion) for the development of infrastructure of fourth-generation cities. Of the total, EGP57 billion ($3.3 billion) is allocated for the construction of electricity, roads, water and wastewater, and housing projects across 21 existing urban cities. The government also plans to invest EGP512 billion ($32 billion) on the Cairo metro expansion until 2024, and EGP325.5 billion ($19 billion) on the implementation of 11 new petrochemical projects until 2035. These projects will support investments in the infrastructure and petrochemical sectors, and are expected to drive growth across the construction value chain.

This 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 (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.

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