Egypt Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 50.78 Billion |
| Market Size (2029) | USD 75.97 Billion |
| CAGR (2024 - 2029) | 8.39 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Egypt Construction Market Analysis
The Egypt Construction Market size is estimated at USD 50.78 billion in 2024, and is expected to reach USD 75.97 billion by 2029, growing at a CAGR of 8.39% during the forecast period (2024-2029).
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. However 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 Market Trends
Increased investment in residential segment by government driving the market
According to the Ministry of Planning and Economic Development, the Egyptian economy witnessed a robust economic performance during Q2 of the current fiscal year (FY) 2021-2022, which ends on June 30th, 2022.
Middle East Sovereign Wealth Funds have shown interest in investing up to USD 120 billion in Egypt in the upcoming years.
In 2022, the total real estate investments in Cairo increased to USD 20 billion, with USD 16 billion dedicated to the residential sector. Average residential property prices increased around 10 percent during the same year.
The government of Egypt is also working on several mechanisms to boost real estate exports, including the establishment of a real estate fund with administrative and commercial assets that generate income, as well as the trading of properties on the Egyptian Stock Exchange (EGX).
In December 2022, Egypt's Urban Development Fund (UDF) began a nationwide massive urban housing project of EGP 600 billion (USD 20.11 Billion). The project entails building 230 urban areas in governorate capitals and important cities around the nation, totaling more than 14,422 acres.
Thirty-five sites totaling 1,750 acres would be developed urgently, 60 sites totaling 2,600 acres would be developed on a priority basis, and the other 135 sites totaling 10,149 acres would be developed on a second priority basis. The whole project would be completed in five years.
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.
In March 2022, the government planned to implement 45 major national and strategic infrastructure projects in the financial year (FY) 2022/2023 (July 1, 2022-June 30, 2023), including the construction of 10 transverse axes on the Nile, the establishment of 18 overpasses, the completion of 1,000km of electrification of railway signals, the expansion of a metro network and the completion of 47 express train stations.
The projects cited included the USD 4.8bn Cairo Metro Line 3 project, which will span 17.7 km and comprise 15 stations; the USD 4.5bn East Cairo-NAC monorail, which will run 54 km and include 22 stations upon completion in 2023; and the USD 4.5bn, 50-km King Salman Bridge, also called the Saudi-Egypt Causeway.
Another major project is the expansion of Cairo Metro. Construction of the LE6.3bn (USD 400.3m) first phase of Line 4 will comprise laying 19 km of rail for 16 stations, and is set for completion in 2026.
Egypt Construction Industry Overview
The Egyptian 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, and 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
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H.A.Construction (H.A.C)
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DORRA Group
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AL-AHLY Development
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Palm Hills Developments
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The Arab Contractors
*Disclaimer: Major Players sorted in no particular order
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 was to be built in three phases and includes 34 residential structures with 1,063 units.
- November 2022: Orascom Construction PLC announced that it 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 were to get most of the partnership's attention: project completion, equipment sales, and operation and maintenance. The partnership was expected to also look into ways to use 3DPC technology to print whole buildings on the Egyptian market.
Egypt Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Method
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Increasing demand for green construction to reduce carbon footprint
4.2.1.2 Introduction of technology for manufactruing the of building construction material
4.2.2 Market Restraints
4.2.2.1 High cost of purchasing the equipment for development and manufacturing of various construction material
4.2.3 Market Opportunities
4.2.3.1 Rapid indutrialization, and urbanization leading to establisment for new construction projects
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Technological Innovations in the Construction Sector
4.6 Spotlight on the Construction Costs
4.7 Impact of Government Regulations and Initiatives on the Industry
4.8 Key Production, Consumption, Export and Import Statistics for Construction Materials
4.9 Spotlight on Prefabricated Buildings Market in Egypt
4.10 Insights on Key Distributors/Traders
4.11 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.1 Residential
5.1.2 Commercial
5.1.3 Industrial
5.1.4 Transportation Infrastructure
5.1.5 Energy and Utilities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 H.A.Construction (H.A.C)
6.2.2 AL-AHLY Development
6.2.3 Palm Hills Developments
6.2.4 DORRA Group
6.2.5 Construction & Reconstruction Engineering Company
6.2.6 Energya- PTS
6.2.7 The Arab Contractors
6.2.8 Osman Group
6.2.9 GAMA Constructions
6.2.10 RAYA Holdings*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)
8.2 Demographic Indicators
Egypt Construction Industry Segmentation
Construction includes any on-site physical work that involves erecting a structure, cladding, external finishing, 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, emerging trends in the market segments, market dynamics, 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 Egyptian construction market in value (USD) for all the above segments.
| By Sector | |
| Residential | |
| Commercial | |
| Industrial | |
| Transportation Infrastructure | |
| Energy and Utilities |
Egypt Construction Market Research Faqs
How big is the Egypt Construction Market?
The Egypt Construction Market size is expected to reach USD 50.78 billion in 2024 and grow at a CAGR of 8.39% to reach USD 75.97 billion by 2029.
What is the current Egypt Construction Market size?
In 2024, the Egypt Construction Market size is expected to reach USD 50.78 billion.
Who are the key players in Egypt Construction Market?
H.A.Construction (H.A.C), DORRA Group, AL-AHLY Development, Palm Hills Developments and The Arab Contractors are the major companies operating in the Egypt Construction Market.
What years does this Egypt Construction Market cover, and what was the market size in 2023?
In 2023, the Egypt Construction Market size was estimated at USD 46.85 billion. The report covers the Egypt Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Egypt Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the growth of the Egypt Construction Market?
The key factors driving the growth of the Egypt Construction Market are a) Rapid urbanization leading to a rise in demand for residential and commercial buildings b) Extensive infrastructure projects including new cities and major transportation developments c) Increased foreign investments in real estate and construction projects
Egypt Construction Industry Report
The Egypt construction market is experiencing significant growth across various sectors, driven by urbanization, government initiatives, and foreign investments. Segmented into residential, commercial, industrial, infrastructure (transportation), and energy and utilities sectors, each contributes to the overall expansion of the construction industry in Egypt. Urban migration is boosting the demand for residential and commercial constructions, with new cities being developed to accommodate the growing urban population and decongest existing centers. Sustainable construction practices are gaining traction among construction companies in Egypt, focusing on eco-friendly materials and renewable energy projects to minimize environmental impact and enhance energy efficiency. The market's competitive landscape is dynamic, with a focus on enhancing regional connectivity and modernizing critical infrastructure to support economic growth. The construction industry in Egypt is poised for robust growth, leveraging technological advancements and sustainability to meet the increasing demands of its urbanizing population. For detailed statistics, market share, size, and revenue growth rate, refer to Mordor Intelligence™ Industry Reports, which include a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
