Tunisia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)
Summary
GlobalData expects the Tunisian construction industry to expand by 1.2% in real terms in 2025. This will be supported by increased flows of foreign direct investment (FDI), alongside greater investments in infrastructure and energy projects. According to the Tunisian Agency for the Promotion of Foreign Investments (FIPA), in 2024, FDI in Tunisia reached TND2.9 billion ($896.4 million), up by 21.4% from TND2.4 billion ($738.1 million) in 2023, reflecting growing investor interest. Manufacturing attracted TND1.8 billion ($548.2 million), rising over 20%, while energy FDI surged by 43% to TND689.4 million ($212.3 million). In March 2025, Tunisia’s Ministry of Energy announced that the Tunisian government granted licenses to four international firms to build solar farms with a total capacity of 500MW, amounting to TND1.3 billion ($386.3 million); these projects are expected to commence operations in 2027, upon which, it will be able to produce about 1.1 terawatt-hour (TWh) of clean power annually. Previously, in November 2024, the Tunisian government announced a plan to allocate TND7.1 billion ($2.2 billion) for the development of the country’s power sector in 2025, with a strong focus on renewable energy projects to address its ongoing power deficit.
The Tunisian construction industry is expected to record an annual average growth rate of 3.1% from 2026 to 2029, supported by the investments in the transport, renewable energy, and hydrogen projects. In January 2025, the African Development Bank (ADB) issued Tunisia a loan of TND283.6 million ($87.3 million) for phase 3 of the Road Infrastructure Modernization Programme, covering 92.98% of the total project cost of TND305 million ($93.9 million). The Tunisian government is contributing TND21.4 million ($6.6 million) to upgrade 188.9 km of classified roads across seven regions: Kef, Kasserine, Sousse, Sfax, Kairouan, Siliana, and Gafsa. Furthermore, the Ministry of Industry, Energy and Mines aims to produce 8.3 million tonnes of green hydrogen, with planned investments reaching up to TND424.5 billion ($130.8 billion) by 2050. The Ministry also aims to produce 8.3 million tonnes of green hydrogen, with planned investments reaching up to TND424.5 billion ($130.8 billion) by 2050.
GlobalData’s Construction in Tunisia - Key Trends and Opportunities to 2029 (H1 2025) report provides detailed market analysis, information and insights into the Tunisian construction industry, including -
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