The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The Egyptian construction industry’s output registered a compound annual growth rate (CAGR) of 9.91% in real terms during the review period (2014-2018), mostly attributed to public and private sector investment in transport infrastructure, energy and housing construction projects, propelling an increase in demand for the Egyptian construction industry. Positive developments in economic conditions and improvement in investor confidence also provided growth momentum.
According to the country’s Transport Ministry, the government invested EGP75 billion (US$4.2 billion) to construct 4,500km of new roads under the National Roads Project during the period of August 2014-June 2018. Moreover, 326,300 residential units were built with an investment of EGP106.9 billion (US$6 billion) in the financial year (FY) 2017-2018, compared to 317,200 units with an investment of EGP91.8 billion (US$5.1 billion) in the preceding period of FY2016-2017. The industry is expected to continue to expand over the forecast period (2019-2023), driven by the government’s focus on developing energy and transport infrastructure in the country.
The industry’s output value in real terms is expected to grow at a CAGR of 11.30% over the forecast period. The industry is expected to grow from a value of US$30.9 billion in 2018 to US$52.7 billion in 2023, measured at constant 2017 US dollar exchange rates.
Accounting for 41.1% of the industry’s total value in 2018, residential construction was the largest market in the Egyptian construction industry during the review period. The market is expected to retain its position over the forecast period, with a market share of 40.5% of the industry’s total value in 2023. Energy and utilities construction accounted for 20.3% of the industry’s total output in 2018, followed by infrastructure construction with 17.8%, commercial construction with 13.8%, industrial construction with 3.8% and institutional construction with 3.2%.
The total construction project pipeline in Egypt including all mega projects with a value above US$25 million - stands at EGP7 trillion (US$392.4 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage development projects, with 70% of the project pipeline by value in the pre-execution and execution stages as of August 2019.
This report provides a comprehensive analysis of the construction industry in Egypt. It provides -
- Historical (2014-2018) and forecast (2019-2023) 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
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