Overview
Egypt’s construction sector remains the cornerstone of national development and a resilient destination for domestic capital. Over the past decade, the industry has shown robust growth, and projections indicate a continued annual expansion rate of approximately seven percent between 2024 and 2027. A combination of government-led mega projects are undergoing, where they are contributing to sustained growth across infrastructure, residential, and commercial developments. Investors from Saudi Arabia, the United Arab Emirates and Qatar are expected to be central to these efforts, especially in early divestment stages. These partnerships have unlocked new projects and introduce efficiency and innovation to public-private cooperation models.
The ports sector presents an additional opportunity for American companies, with international players—particularly from Asia, Europe, and the Arab Gulf—seeking to expand their logistics and transshipment presence in Egypt’s strategic locations.
Transportation and Connectivity
The Ministry of Transport has a pipeline of approximately 25 railway projects, focused on intercity transport and logistics. A major initiative is the High-Speed Rail Network project, with Siemens as the lead contractor for an $8.7 billion national system linking key urban and economic hubs.
Smart Cities Development
The Ministry of Housing’s New Urban Communities Authority (NUCA) will be the primary developer for 14 new smart cities, with a mandate to create sustainable urban environments and facilitate private sector entry through pre-developed infrastructure.
Reported infrastructure investments have totaled approximately EGP 1.7 trillion (approx. $106.25 billion) from 2023-2025.
Leading Sub-sectors
Best sales prospects include, but are not limited, to the following categories:
- Design Services
- Project Consulting
- Project Management
- Construction Equipment
- Construction Materials
- Construction Chemicals
Opportunities
Both the residential and retail subsectors are witnessing strong growth: the residential market was valued at $20.0 billion in 2025 and is growing at a 10.96 percent compound annual growth rate (CAGR) through 2033, while the broader commercial sector (including retail) is expanding at about 10.2 percent CAGR, reaching roughly $9.4 billion by 2025. The sector is expected to offer opportunities for companies in construction, modular housing, mortgage financing, smart‑metering, and retail‑commercial development. President El‑Sisi’s affordable housing program aims to rebuild unplanned, overpopulated neighborhoods by helping deliver 500,000–600,000 new homes per year (70 percent aimed at low‑income segments) to alleviate the persistent housing shortage.
Similarly, high-end housing compounds have expanded into new suburbs around Cairo and the Red Sea and Mediterranean coasts. These coastal developments with their luxury developments are attracting Gulf country investors.
The retail sector has also witnessed a boom as new, high-end indoor malls are mushrooming around Egypt.
Residential Sector
The Egyptian government is actively addressing informal housing challenges via the Affordable Housing Program, which includes:
- Reconstruction of impoverished areas and unplanned urban areas.
- Construction of low-to-middle income housing units.
Simultaneously, high-end residential developments are gaining traction in suburban areas around Greater Cairo and coastal zones along the Red Sea and Mediterranean Sea, appealing to high-net-worth individuals and Gulf investors.
Retail and Commercial Growth
The retail sector is experiencing rapid expansion, characterized by the development of modern malls and commercial centers in both traditional urban areas and new smart cities. Consumer demand, population growth, and improved infrastructure are driving this trend.
Resources
For more information on the Infrastructure Sector, contact:
Rania Mekhail
Senior Commercial Specialist
U.S. Embassy Cairo