The Information and Decision Support Center of the Council of Ministers highlighted the report issued by the US agency Fitch Solutions, entitled “Prospects for the Construction Sector in Egypt,” which expected an acceleration in the growth of the construction sector in Egypt during the fiscal years 2025/2026 and 2026/2027, supported by strong activity in infrastructure projects. Especially in the energy, utilities and transportation sectors, indicating that this activity reflects the country’s continued trend towards developing infrastructure networks and enhancing its economic capabilities through investment in strategic sectors.
This is within the framework of the periodic follow-up of the Information and Decision Support Center in the Council of Ministers, for everything that is raised about the Egyptian issue or falls within the scope of its interest within international think-tanks and research, international classification institutions, and various news agencies, newspapers, and foreign periodicals around the world.
The agency’s forecasts indicated that the real growth of the construction sector in Egypt will accelerate in the coming years. It is expected to rise from 4.1% in the fiscal year 2024/2025 to 5.6% in the fiscal year 2026/2027, then to 6.6% in the fiscal year 2027/2028.
In the medium term, the construction sector in Egypt is expected to grow at an annual average of 6.3% during the period (2026-2035), as a result of the interaction of economic recovery factors with long-term structural factors such as urban expansion and the increasing need for transportation, energy and infrastructure networks.
The report indicated continued strong activity in the construction sector in Egypt, supported by extensive projects in the areas of industrial and urban development, including mixed-use projects, which contribute to expanding the scope of urban development and meeting the growing demand for residential, commercial and service spaces.
The outlook for the transport infrastructure sector also remains positive, supported by the implementation of continued investments in container terminals and port expansion projects on the Mediterranean and Red Sea coasts. With the aim of strengthening Egypt’s position as a regional center for transshipment and logistics services.
In the same context; Egypt continues to develop urban transport networks and connect cities through modern railway projects, including the high-speed railway network, which extends about 2,000 kilometers and connects about 60 cities at speeds of up to 230 kilometers per hour, which enhances transport efficiency and reduces travel times between different regions.
The Information Center explained that the Fitch report indicated the expansion of investment opportunities in the energy and utilities sector. The expansion of non-hydroelectric renewable energy and the increased participation of the private sector contribute to supporting the state’s goal of reaching the share of renewable energy in electricity generation to more than 60% by 2040. This is likely to prompt the launch of new projects in wind energy, solar energy, and green hydrogen, in addition to enhancing investments in water infrastructure, including water desalination and treatment.
The report expected that declining inflation rates and rising private sector investments would contribute to supporting construction activity. In the long term, demographic trends and government incentives to attract private investment, in addition to the large deficit in housing supply, will remain among the main drivers of construction activity.
In a related context, the report explained that strong activity in infrastructure, led by investments in the energy, utilities, and transportation sectors, represents the basis of the positive outlook for the construction sector in Egypt. Infrastructure projects worth more than $30 million represent about 34.5% of the total value of construction projects in Egypt, with a total amounting to about $166.6 billion, which reflects the central role of infrastructure in supporting the growth of the sector.
The Suez Canal Economic Zone also contributes to enhancing demand for construction by attracting industrial and logistical investments, taking advantage of Egypt’s strategic geographical location and the expansion of special economic zones. The region has witnessed the launch of a large number of industrial and logistics projects that support the continuing demand for industrial buildings and associated infrastructure.
At its conclusion, the report stressed that major urban development projects will remain among the main drivers of construction activity in Egypt in the long term, including the New Capital project, which continues to expand the scope of urban development in Egypt, and the “Alam al-Rum” and Ras al-Hikma Peninsula projects on the northwestern coast. In parallel with these huge coastal projects, other urban initiatives are expected to contribute to expanding the lines of residential, commercial and tourism projects, supporting the continued growth of the construction sector in Egypt in the coming years.
