The analyst projects the construction industry in Tunisia to register a real term growth of 4.6% in 2025, and 3.2% in 2026, supported by the government’s emphasis on developing partnerships with neighboring countries to boost external demand, alongside an increase in Foreign Direct Investment (FDI), easing inflationary pressures, coupled with investment in energy infrastructure. According to the National Institute of Statistics (INS), the construction industry’s value-add grew by 3.9% year-on-year (YoY) in Q3 2025, this was preceded by YoY growths of 9% in Q2 and 2.9% in Q1 2025. According to the Tunisian Agency for the Promotion of Foreign Investments (FIPA), the total FDI in the country grew by 27.7% YoY in the first nine months of 2025, reaching TND2.5 billion ($781.1 million) that period. The industrial sector accounted for 63.6% of the total FDI, aligning with the government's objective to double FDI and achieve TND4 billion ($1.2 billion) by 2026. Furthermore, the Tunisia Investment Authority (TIA) reported that the total amount of declared investments in the country reached TND6 billion ($1.8 billion) in the first nine months of 2025, representing a 41.5% rise compared to the same period of 2024. Of the total, the industrial sector attracted investments of TND1.7 billion ($511.4 million), while the renewable energy sector received TND1.1 billion ($333.8 million) during the same period.
Over the remainder of the forecast period, the Tunisian construction industry is projected to record an annual average growth rate of 2.6% between 2027 and 2029, bolstered by investments in transport, industrial, and renewable energy projects. This aligns with the government's goal of producing 35% of electricity from renewable sources by 2030 and 50% by 2050. To facilitate this, in mid-December 2025, the Ministry of Energy granted 190 preliminary approvals for small and medium-scale projects ranging from 1MW to 10MW, which together represent a total capacity of 290MW and a cumulative investment of TND600 million ($184.8 million). Additionally, in November 2025, the World Bank sanctioned a funding package of TND1.4 billion ($430 million) for Tunisia to enhance its energy sector through the Tunisian Energy Reliability, Efficiency and Governance Enhancement Program (TEREG). This five-year initiative aims to create a sustainable, reliable, and affordable electricity supply, while reducing carbon emissions. It is anticipated that this program will draw in an extra investment of TND9.1 billion ($2.8 billion) to support the construction of 2.8GW of new solar and wind capacity by 2028. Furthermore, in October 2025, the France-based energy developer Qair announced its intention to seek TND204.2 million ($62.9 million) in funding from the European Bank for Reconstruction and Development (EBRD) for the development of two solar projects in Tunisia, which will have a combined installed capacity of 298MW, these projects are expected to be completed by 2027. Also, in October 2025, the Italian cable manufacturer Prysmian revealed plans to construct a power cable project connecting Tunisia to Italy. This contract, valued at TND1.6 billion ($501.2 million), will involve the installation of a 220km transmission line with a capacity of 600MW, linking Tunisia’s Cap Bon peninsula to the Partanna station in Sicily, Italy.
Over the remainder of the forecast period, the Tunisian construction industry is projected to record an annual average growth rate of 2.6% between 2027 and 2029, bolstered by investments in transport, industrial, and renewable energy projects. This aligns with the government's goal of producing 35% of electricity from renewable sources by 2030 and 50% by 2050. To facilitate this, in mid-December 2025, the Ministry of Energy granted 190 preliminary approvals for small and medium-scale projects ranging from 1MW to 10MW, which together represent a total capacity of 290MW and a cumulative investment of TND600 million ($184.8 million). Additionally, in November 2025, the World Bank sanctioned a funding package of TND1.4 billion ($430 million) for Tunisia to enhance its energy sector through the Tunisian Energy Reliability, Efficiency and Governance Enhancement Program (TEREG). This five-year initiative aims to create a sustainable, reliable, and affordable electricity supply, while reducing carbon emissions. It is anticipated that this program will draw in an extra investment of TND9.1 billion ($2.8 billion) to support the construction of 2.8GW of new solar and wind capacity by 2028. Furthermore, in October 2025, the France-based energy developer Qair announced its intention to seek TND204.2 million ($62.9 million) in funding from the European Bank for Reconstruction and Development (EBRD) for the development of two solar projects in Tunisia, which will have a combined installed capacity of 298MW, these projects are expected to be completed by 2027. Also, in October 2025, the Italian cable manufacturer Prysmian revealed plans to construct a power cable project connecting Tunisia to Italy. This contract, valued at TND1.6 billion ($501.2 million), will involve the installation of a 220km transmission line with a capacity of 600MW, linking Tunisia’s Cap Bon peninsula to the Partanna station in Sicily, Italy.
The Construction in Tunisia - Country Briefing (H2 2025) 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.
Report Scope
This report provides a comprehensive analysis of the construction industry in Tunisia. It provides:
- Historical (2020-2024) and forecast (2025-2029) 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
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
