The construction sector in Egypt has always been considered the safe heaven for savings for Egyptians. The sector has witnessed a significant growth over the last 10 years. And, going forward, the sector is projected to grow 9% on average between 2020-2024 after a brief slowdown because of the COVID-19 outbreak. This growth will be driven mainly by active public-private partnerships and green building expansion to increase energy efficiency and high-end infrastructure. The real state sector has always been considered as a safe-haven investment for most Egyptians as it has maintained value and even increased. The Egyptian government is a massive investor in the construction sector. A high-profile example is the Government of Egypt’s building of a massive “New Administrative Capital” 30 miles east of Cairo. The first phase of the project, which includes all government cabinet ministries and authorities, is almost complete and the government is expected to move by the end of 2022. The government is also upgrading airports, ports, and transportation networks. In total, the Ministry of Transport has around 25 projects in the railway sector in the pipeline. The government’s top priority is to connect the cities with decent transportation means and to develop the roads and ports for industrial expansions.
Egypt has announced the construction of a High-Speed Train to connect the whole country through different phases. This project was contracted to Siemens as a main contractor with a value of $8.7 billion.
Egypt has a plan to build up to 14 new smart cities throughout the country. According to the Minister of Housing, Egypt completed infrastructure projects worth about LE 1.7 trillion (approximately US 106.25 billion) in less than two years.
The New Urban Communities Authority (NUCA) has plans to build additional new cities that incorporate schools, hospitals, shopping centers, and entertainment facilities. This authority is responsible for developing these new cities and connecting them to the already existing infrastructure.
NUCA is encouraging private investors to participate in the development of these new cities and by providing the basic infrastructure to make the cities attractive to investors.
Best sales prospects include, but are not limited, to the following categories:
- Project consulting
- Project Management
- Construction Equipment
- Construction material
- Construction Chemicals
Currently, both the residential and retail subsectors are witnessing significant growth. As a result, the sector is expected to offer many opportunities for companies. The government is also participating in this boom by building affordable houses for its citizens and reconstructing the slums that have widely spread around the different cities. One of President’s El-Sisi’s priorities is to re-build these unplanned, overpopulated neighborhoods. These projects are managed under the affordable housing program.
Similarly, high-end housing compounds have also expanded in new suburbs around the Greater Cairo and the Red Sea and Mediterranean coasts. These coastal developments with their luxury developments are attracting GCC investors.
The retail sector has also witnessed a boom as new malls are mushrooming around Egypt.
- U.S. Commercial Service in Egypt
- U.S. Embassy
- World Bank
- American Chamber of Commerce in Egypt
- Egyptian Government Web Portal
- Ministry of Housing, Utilities and Urban Communities
Contact for the Commercial Specialist in charge of the Architecture, Construction and Engineering Sector: Mrs. Rania Mekhail