Egypt Construction Market - Growth, Trends, COVID-19 Impact, and Forecast (2023 - 2028)

The Egypt Construction Market is segmented by Sector (Residential, Commercial, Industrial, Transportation Infrastructure, and Energy and Utilities). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

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Egypt Construction Market Size

Egypt Construction Market Summary
Study Period: 2019 - 2028
CAGR: > 6 %

Major Players

Egypt Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Egypt Construction Market Analysis

The size of Egypt Construction Market is USD 68.5 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period.

  • Egyptians have always seen the building industry as a safe shelter for their wealth. The previous ten years have seen a considerable increase in the sector. Active public-private partnerships, the proliferation of green buildings, and the need for high-end infrastructure will be the key drivers of this growth. For most Egyptians, investing in real estate has long been seen as a haven due to its consistent value growth.
  • The Egyptian government has made significant investments in the building industry. Additionally, the government is modernizing transportation systems, ports, and airports. The Ministry of Transportation is currently working on about 25 projects related to the railroad industry. The development of roads and providing enough transit between the cities are the government's primary priorities.
  • The Covid-19 pandemic has changed the construction industry's visualization of digitalization. The health issue forced the sector to adopt more adaptable and team-based working practices. Tools like architectural information modeling (BIM) and shared data environments have made this possible. But according to experts, needs and supportive rules for adopting digital tools become a long-term shift. Additionally, project sponsors must function as change agents.
  • Egypt is the largest project market in Africa and the third largest in the Middle East and North Africa (Mena), after Saudi Arabia and the United Arab Emirates (USD 1.3 trillion and USD 519 billion, respectively).
  • Egypt has revealed plans to build a high-speed train connecting the entire nation. As the prime contractor, Siemens was given a contract for this project with a value of USD 8.7 billion. According to the country's plans, up to 14 new smart towns could be built in Egypt. The Ministry of Housing claims that in less than two years, Egypt finished infrastructure projects valued at about LE 1.7 trillion (about USD 106.25 billion).
  • The New Urban Communities Authority (NUCA) intends to construct more cities with integrated educational, medical, retail, and leisure services. This organization is in charge of creating these new cities and tying them to existing infrastructure.

Egypt Construction Industry Segmentation

Construction includes any on-site physical work that involves erecting a structure, cladding, external finish, formwork, fixtures, installing services, unloading equipment, supplies, or the like. A complete background analysis of the Egypt Construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

The Egypt Construction Market is segmented by Sector (Residential, Commercial, Industrial, Transportation Infrastructure, and Energy and Utilities). The report offers market size and forecasts for the Egypt Construction market in value (USD billion) for all the above segments.

By Sector
Residential
Commercial
Industrial
Transportation Infrastructure
Energy and Utilities

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Egypt Construction Market Trends

This section covers the major market trends shaping the Egypt Construction Market according to our research experts:

Increased investment in residential segment by government driving the market

The Central Agency documented residential units built in FY2020/2021 for Public Mobilization and Statistics (CAPMAS). There were 316,027 of them. Therefore 146,229 public housing units and 169,798 private housing units were built, respectively. Regarding the targeted demographics, 48 were constructed for low-income residents, 148,787 for low-middle-income residents, 123,705 for middle-middle-income residents, 17,144 for high-middle-income residents, and 26,343 for high-income residents.

In 2021, the government declared that it would construct 500,000 homes for people not qualified for subsidized social housing. This results from a lack of supply from the private sector, whose primary offerings are expensive homes worth millions of pounds each. However, the government has provided residents of slums with fully equipped cottages inside alternate housing developments.

According to the Slum Development Fund, developing slums will cost LE 44 billion (USD 1.79 Billion), compared to LE 318 billion (USD 12.95 Billion) for developing unplanned areas. The result is consistent with the government's focus on increasing urbanization so that it eventually makes up 14% rather than 7% of Egypt's land area.

Egypt Construction Market - Minimum and maximum average area of residential villas

Rising demand for infrastructure projects is driving the market

Despite high inflation, currency depreciation, and rising energy and material costs, Egypt's construction industry is predicted to grow by 9.7% in real terms by the end of 2022. Constructions account for 14% of Egypt's GDP, which is the biggest sectoral percentage. As reported in May 2022, about USD 93 billion worth of projects were being worked on in Egypt, while there is more than USD 425 billion worth of projects in various pre-execution stages. Project activity has been a bright spot for the Egyptian economy in recent years despite the impact of Covid-19, and foreign governments have been clamoring to fund project development in the nation through export credit financing agreements.

Projects in the residential and institutional sectors are probably going to grow at the fastest rate. Public-private partnership (PPP) ventures may also be a major factor in the growth of Egypt's healthcare industry. Additional areas of opportunity for investors and contractors include plans for sizable grid connectivity projects and a persistent need to increase water treatment capacity to improve water security.

Egypt Construction market - GDP from construction

Egypt Construction Industry Overview

The Egypt construction market is fragmented in nature, with many global, regional, and local players in the market. Some of the key players in the market include H.A.Construction (H.A.C), DORRA Group, AL-AHLY Development, Palm Hills Developments, The Arab Contractors. The market is highly competitive, with many opportunities for private firms. The government is taking necessary steps to support the sector by collaborating with private firms to pursue various low-income housing schemes.

Egypt Construction Market Leaders

  1. H.A.Construction (H.A.C)

  2. DORRA Group

  3. AL-AHLY Development

  4. Palm Hills Developments

  5. The Arab Contractors

*Disclaimer: Major Players sorted in no particular order

Egypt Construction Market Concentration

Egypt Construction Market News

  • October 2022: ERG Developments in the New Administrative Capital (NAC) has begun construction on the residential complex Ri8 for an estimated 3.5 billion Egyptian pounds. The 25-acre Ri8 Compound is part of Zawya Projects, which will be built in three phases and includes 34 residential structures with 1,063 units.
  • November 2022: Orascom Construction PLC announced that it had joined forces exclusively with COBOD, a Denmark-based company, to introduce cutting-edge 3D Printing Construction ("3DPC") technology to Egypt for the first time. Three business areas will get most of the partnership's attention: project completion, equipment sales, and operation and maintenance. The partnership will also look into ways to use 3DPC technology to print whole buildings on the Egyptian market.

Egypt Construction Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Method

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Market Drivers

      2. 4.2.2 Market Restraints

      3. 4.2.3 Market Opportunities

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Technological Innovations in the Construction Sector

    6. 4.6 Spotlight on the Construction Costs

    7. 4.7 Impact of Government Regulations and Initiatives on the Industry

    8. 4.8 Key Production, Consumption, Export and Import Statistics for Construction Materials

    9. 4.9 Spotlight on Prefabricated Buildings Market in Egypt

    10. 4.10 Insights on Key Distributors/Traders

    11. 4.11 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Sector

      1. 5.1.1 Residential

      2. 5.1.2 Commercial

      3. 5.1.3 Industrial

      4. 5.1.4 Transportation Infrastructure

      5. 5.1.5 Energy and Utilities

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 H.A.Construction (H.A.C)

      2. 6.2.2 AL-AHLY Development

      3. 6.2.3 Palm Hills Developments

      4. 6.2.4 DORRA Group

      5. 6.2.5 Construction & Reconstruction Engineering Company

      6. 6.2.6 Energya- PTS

      7. 6.2.7 The Arab Contractors

      8. 6.2.8 Osman Group

      9. 6.2.9 GAMA Constructions

      10. 6.2.10 RAYA Holdings*

      3. *List Not Exhaustive

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

    1. 8.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)

    2. 8.2 Demographic Indicators

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Egypt Construction Market Research FAQs

The Egypt Construction Market is studied from 2019 - 2028.

The Egypt Construction Market is growing at a CAGR of >6% over the next 5 years.

H.A.Construction (H.A.C), DORRA Group, AL-AHLY Development, Palm Hills Developments, The Arab Contractors are the major companies operating in Egypt Construction Market.

Egypt Construction Industry Report

Statistics for the 2023 Egypt Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Egypt Construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Egypt Construction Report Snapshots

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