Egypt’s construction resurgence
In light of Egypt’s economic landscape, the construction sector has emerged as a powerhouse, a dynamic force steering the nation toward economic growth. Over the last three years, infrastructure development has become a key growth engine, propelling economic prosperity, shaping the nation’s economic conditions, and a catalyst for job creation. The sector was arguably the country’s saving grace during the global economic downturn of the pandemic and has, of course, attracted significant investment from the GCC. Indeed, total inbound investment from the GCC has topped $115 billion over the last three years.
Egypt’s government has nurtured and fostered the resurgence of the construction sector, and its evolution is a central component of its Sustainable Development 2030 Vision. The goal of the 2030 vision revolves around a commitment to modernisation, resolving urban congestion, and adopting more sustainable urban development practices.
The government’s 2030 vision also sets forth the stage for a monumental transformation, which includes the development of 14 new urban communities, known as the fourth-generation cities, to an extensive road and transportation network. The largest fourth-generation city under development is the $45 billion New Administrative Capital, which emerged as the fourth most popular investment location in Egypt for GCC nationals in our recently published Destination Egypt report.
Other new mega-cities include New Alamein City, Galala City, and the Suez Canal Economic Zone. These endeavours not only redefine skylines but signify a national commitment to fostering economic development and sustainability through creating approximately six million new jobs and providing accommodation for 14 million citizens. The sector accounted for 14% of GDP in 2022, the largest contributor to economic growth. The construction sector is expected to grow by 7.4% per annum between 2024-2027.