Tunisia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (H2 2024)

The Construction in Tunisia - Country Briefing (H2 2024) 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.

The analyst estimates that the Tunisian construction industry will contract by 2.2% in real terms in 2024, owing to elevated inflation, high interest rates, and continued political unrest. According to the Central Bank of Tunisia (BCT) the interest rate stood at 8% in September 2024, the highest recorded level since 2006, thereby weighing upon the investors’ confidence and lowering project viability in the construction market. Moreover, the President of Tunisia sacked the Prime Minister of the country in August 2024 and replaced him with the social affairs minister, following allegations of widespread discontent over the continued water and electricity outages in the country. Further compounding Tunisia’s problems is that the government has been forced to turn to the central bank to help pay the country’s external debt. The state will likely need to borrow as much as TND7 billion ($2.2 billion) from the regulator in 2025, with most of that sum going towards servicing Tunisia’s debt. This includes a $1 billion Eurobond that matures in January 2025.

The North African country has struggled economically since 2010, following the pro-democracy uprising. While the country has failed to secure the necessary revenue from its key exports such as manufacturing and phosphates, causing a foreign currency gap. These problems have resulted in increased uncertainty in the country, significantly impacting the construction industry. According to the National Institute of Statistics of Tunisia (INS), the construction industry’s value-add declined by 3.5% year on year (YoY) in Q2 2024, this was preceded by a YoY decline of 5.1% in Q1 2024 and 4.2% in Q4 2023. The Tunisian construction industry is expected to record an annual average growth rate of 2.9% from 2025 to 2028, supported by the government’s aim to improve the country’s transport infrastructure and investment in renewable energy and hydrogen projects.

Scope

This report provides a comprehensive analysis of the construction industry in Tunisia. It provides:

• Historical (2019-2023) and forecast (2024-2028) 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 our 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 business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors