Due to the strategic geographical location, Egypt has excellent access to the Mediterranean Sea on one side and the Red Sea on the other. This makes the maritime sector of the country the most important in Africa. Almost 90% of the country’s international trade flow (in terms of volume) occurs through sea transport, which is a significant contribution to the country’s economy. Egypt, under the plan ‘Vision 2030’, aims to increase the handling capacity of ports to 370 million metric ton by 2030, from 120 million metric ton. Major developments include the construction of port terminals by Red Sea Ports Authority and the development of Port Said.
Moreover, the Suez Canal, which is the artificial waterway, connects the Mediterranean Sea with the Red Sea. More than 10% of world trade volume happens through the Suez Canal. The Suez Canal tolls are a significant source of revenue. Furthermore, Suez Canal Zone is expected to attract approximately USD 30 billion through FDI.

In the 2016-17 period, construction accounted for the highest share of implemented investments in the country. Of the EGP 391.7 billion (USD 25.8 billion) invested in the first three-quarters of FY 2016/17, 18.5% was directed toward construction activities. 
As this suggests, there are significant demand drivers for continued construction expenditure. At the same time, the population of Egypt has crossed 100 million. Urban areas are under particular strain, causing significant construction investment. As of early 2018, just over 43% of the population lives in urban areas, but this is growing at 1.8% each year, and this is likely to be further boosted by plans for new cities. The capital, Cairo, has nearly 19 million residents, while Alexandria, the country’s second-largest city, is approaching 5 million. With such growth, there is a substantial demand for housing.
The growth in the construction industry is a reliable driver for the freight and logistics sector in Egypt.