Construction In Egypt – Key Trends And Opportunities To 2023

The Egyptian construction industry’s output registered a compound annual growth rate (CAGR) of 9.91% in real terms during the review period (2014–2018), mostly attributed to public and private sector investment in transport infrastructure, energy and housing construction projects, propelling an increase in demand for the Egyptian construction industry. Positive developments in economic conditions and improvement in investor confidence also provided growth momentum.

The industry is expected to continue to expand over the forecast period (2019–2023), driven by the government's focus on developing energy and transport infrastructure in the country. The government plans to invest EGP55 billion (US$3.1 billion) to develop the country’s rail infrastructure by 2022. Investments in residential buildings, electricity transmission, healthcare projects and the oil and gas sector are also expected to support the industry’s output. In June 2019, the government announced its plan to invest EGP19.6 billion (US$1.1 billion) to upgrade the country's transmission grid network during FY2019–2020. Furthermore, the government aims to enhance the sustainability of the tourism sector, with a special emphasis on developing the country as a medical and health tourism hub.

The industry’s output value in real terms is expected to grow at a CAGR of 11.30% over the forecast period.

GlobalData’s Construction in Egypt – Key Trends and Opportunities to 2023 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.

Key Highlights

– GlobalData expects the residential construction market to retain its leading position over the forecast period and account for 40.5% of the industry’s total value in 2023, driven by public and private sector investments in the construction of new residential buildings to meet the increasing demand for housing. In April 2019, the government announced plans to build 1.1 million affordable housing units in the country by 2024. In the 2019 budget, the government announced a plan to allocate EGP3.9 billion (US$218 million) to develop social housing in the country.

– Energy and utilities construction market’s growth over the forecast-period will be driven by the government aim to increase the share of renewable energy in the total energy mix from 3% in 2018 to 20% by 2022, and 40% by 2035. Egypt is preparing to open the 1.6GW Benban Solar Park in the southern city of Aswan – a project that indicates the country’s renewable energy plans. To encourage investments in the renewable energy sector, Egypt has enacted laws to allow the sale of electricity by individuals and companies to the national network; these laws also permit the flow of investments in renewable energy.

– GlobalData expects the infrastructure construction market to register a forecast-period CAGR of 27.54% in nominal terms, driven by the government’s effort to upgrade the country’s rail infrastructure, in order to enhance regional connectivity. The government aims to build an alliance with the private partners to invest EGP35.8 billion (US$2 billion) in rail projects in the country by 2020.

– Institutional construction market’s growth over the forecast-period will be driven by the government investments in educational and healthcare infrastructure in the country, with an aim to provide quality education and medical facilities to every citizen. In February 2019, the government announced that it plans to build eight international universities in the New Administrative City (NAC) by 2020, which includes universities from Europe and North America. Moreover, in the 2019 budget, the government increased the budget allocation for the healthcare sector by 22.2%, going from EGP62 billion (US$3.5 billion) in 2018 to EGP75.6 billion (US$4.2 billion) that year.

– The total construction project pipeline in Egypt – as tracked by GlobalData, and including all mega projects with a value above US$25 million – stands at EGP7 trillion (US$392.4 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage development projects, with 70% of the project pipeline by value in the pre-execution and execution stages as of August 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Egypt. It provides –

– Historical (2014–2018) and forecast (2019–2023) 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 GlobalData'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 GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 Construction Outlook

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 Key Industry Participants

6.1. Contractors

6.2. Consultants

7 Appendix

7.1. What is this Report About?

7.2. Definitions

8 About GlobalData

8.1. GlobalData at a Glance

8.2. GlobalData Construction

8.3. Disclaimer

8.4. Contact Us

List of Tables

List of Tables

Table 1: Construction Outlook

Table 2: Egypt, Key Economic Indicators

Table 3: Egypt, Construction Output Value (nominal, EGP Million)

Table 4: Egypt, Construction Output Value (nominal, US$ Million)

Table 5: Egypt, Top Commercial Construction Projects by Value

Table 6: Egypt, Top Industrial Construction Projects by Value

Table 7: Egypt, Top Infrastructure Construction Projects by Value

Table 8: Egypt, Top Energy and Utilities Construction Projects by Value

Table 9: Egypt, Top Institutional Construction Projects by Value

Table 10: Egypt, Top Residential and Mixed-Use Construction Projects by Value

Table 11: Egypt, Key Contractors

Table 12: Egypt, Key Consultants

Table 13: GlobalData Construction Market Definitions

Table 14: Construction Risk Index Ratings and Scores

List of Figures

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Egypt, Construction Projects Pipeline by Sector (EGP Billion)

Figure 3: Egypt, Risk Profile

Figure 4: Egypt, Risk Comparison

Figure 5: Egypt, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 6: Egypt, Construction Output Value, Growth Matrix

Figure 7: Egypt, Construction Output Value, by Sector (EGP Million), 2014–2023

Figure 8: Egypt, Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 9: Egypt, Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 10: Egypt, Commercial Construction Output by Project Type (EGP Million), 2014–2023

Figure 11: Egypt, Commercial Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 12: Egypt, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 13: Egypt, Industrial Construction Output by Project Type (EGP Million), 2014–2023

Figure 14: Egypt, Industrial Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 15: Egypt, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 16: Egypt, Infrastructure Construction Output by Project Type (EGP Million), 2014–2023

Figure 17: Egypt, Infrastructure Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 18: Egypt, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 19: Egypt, Energy and Utilities Construction Output by Project Type (EGP Million), 2014–2023

Figure 20: Egypt, Energy and Utilities Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 21: Egypt, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 22: Egypt, Institutional Construction Output by Project Type (EGP Million), 2014–2023

Figure 23: Egypt, Institutional Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 24: Egypt, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 25: Egypt, Residential Construction Output by Project Type (EGP Million), 2014–2023

Figure 26: Egypt, Residential Construction Projects Pipeline, Value by Stage (EGP Million)

Figure 27: Egypt, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (EGP Million), 2018–2023

Figure 28: Egypt, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 29: Egypt, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 30: Egypt, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 31: Egypt, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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