Summary
The outbreak of the Coronavirus (COVID-19) pandemic has weighed on the Egyptian construction industry, which is expected to have expanded by 2.7% in real terms in 2020. The Egyptian construction industry had been growing at a fast pace prior to the pandemic, growing at an annual average rate of 9.6% between 2016-2019, and driven by the construction of mega projects, which includes new cities, transport infrastructure and residential buildings.
The industry was temporarily affected in Q2 2020, due to the pandemic’s impact on construction progress and investor confidence, as well as the government’s decisions to temporarily suspend the issuance of new construction licenses for private buildings across most cities for six months. According to the Central Bank of Egypt (CBE), the industry ‘s value-add contracted by 5.7% year on year (YoY) in Q2 2020, before recovering slowly in Q3 2020 with growth of 2.6% YoY. Large infrastructure projects, including the New Administrative Capital (NAC), New Alamein and New Galala, which are highly labor intensive, avoided some of the disruptions experienced by other sectors in the economy, and continued to work on schedule. Without this ongoing work on public megaprojects, the slowdown would have been more severe. The government is focused on increasing public spending to implement new projects and provide better services. In November 2020, the government announced that it had increased the amount of planned public investments in FY2020/2021 (which started in July 2020) by 70%, to reach EGP595 billion (US$34.2 billion), with a large share of these investments belonging to the health and education sectors. The government is also focusing on several promising sectors such as agriculture, food industries, communications and information technology, construction, and manufacturing. Of the planned total investments, EGP47.1 billion (US$2.7 billion) will be directed towards the development of Upper Egypt governorates, marking an increase of 51% compared to the previous year.
The publisher expects the industry to rebound with growth of 12.7% in 2021, before registering average annual growth of 10.2% before 2022-2025. The industry’s growth over the forecast period will be supported by investments in the development of fourth generation cities. In November 2020, the government allocated EGP90 billion (US$5.2 billion) for the development of infrastructure of fourth-generation cities in the country. Of the total, EGP57 billion (US$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 (US$32 billion) on the Cairo metro expansion over the next four years, and EGP325.5 billion (US$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 -
Scope
This report provides a comprehensive analysis of the construction industry in Egypt. It provides -
Reasons to Buy
The outbreak of the Coronavirus (COVID-19) pandemic has weighed on the Egyptian construction industry, which is expected to have expanded by 2.7% in real terms in 2020. The Egyptian construction industry had been growing at a fast pace prior to the pandemic, growing at an annual average rate of 9.6% between 2016-2019, and driven by the construction of mega projects, which includes new cities, transport infrastructure and residential buildings.
The industry was temporarily affected in Q2 2020, due to the pandemic’s impact on construction progress and investor confidence, as well as the government’s decisions to temporarily suspend the issuance of new construction licenses for private buildings across most cities for six months. According to the Central Bank of Egypt (CBE), the industry ‘s value-add contracted by 5.7% year on year (YoY) in Q2 2020, before recovering slowly in Q3 2020 with growth of 2.6% YoY. Large infrastructure projects, including the New Administrative Capital (NAC), New Alamein and New Galala, which are highly labor intensive, avoided some of the disruptions experienced by other sectors in the economy, and continued to work on schedule. Without this ongoing work on public megaprojects, the slowdown would have been more severe. The government is focused on increasing public spending to implement new projects and provide better services. In November 2020, the government announced that it had increased the amount of planned public investments in FY2020/2021 (which started in July 2020) by 70%, to reach EGP595 billion (US$34.2 billion), with a large share of these investments belonging to the health and education sectors. The government is also focusing on several promising sectors such as agriculture, food industries, communications and information technology, construction, and manufacturing. Of the planned total investments, EGP47.1 billion (US$2.7 billion) will be directed towards the development of Upper Egypt governorates, marking an increase of 51% compared to the previous year.
The publisher expects the industry to rebound with growth of 12.7% in 2021, before registering average annual growth of 10.2% before 2022-2025. The industry’s growth over the forecast period will be supported by investments in the development of fourth generation cities. In November 2020, the government allocated EGP90 billion (US$5.2 billion) for the development of infrastructure of fourth-generation cities in the country. Of the total, EGP57 billion (US$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 (US$32 billion) on the Cairo metro expansion over the next four years, and EGP325.5 billion (US$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 (2016-2020) and forecast (2021-2025) 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 the publisher'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 the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
