Tuesday 18/March/2025 – 12:18 PM
The Information and Decision Support Center in the Council of Ministers highlights the expectations of the BMI company, affiliated with the Fitch Solichins, which indicates that the construction sector in Egypt will witness strong growth in 2025, with this positive view continuing in the long term, due to the urbanization trends, population growth, and efforts to develop strong infrastructure by the government and the private sector, where you expect the construction sector grow in Egypt in the two years. Malians 2024/2025 and 2025/2026, with 6.8% and 6.9%, respectively, compared to a growth of 5.7% in the fiscal year 2023/2024.
The construction sector in Egypt will witness strong growth in 2025
These positive expectations enhance the increased demand for infrastructure and housing as a result of urbanization and population growth, in addition to the fact that the strategic location of Egypt in global trade will contribute to attracting investments in industrial infrastructure, and will support government initiatives to diversify the economy and attract foreign investment, new projects in the energy sector, tourism growth, the growth of the construction sector in the long term.
The report pointed out that despite the economic challenges taking place in Egypt, such as regional tensions and the decline in revenues as a result of the decline in the transit movement rates in the Suez Canal, the construction sector in Egypt achieved a relatively good performance, as it recorded a real growth of 5.7% in 2023/2024, despite its slowing compared to 7% in the fiscal year 2022/2023.
The report stated that in the long run, the construction sector is expected to witness a powerful growth of 6.1 % on an annual basis between 2025 and 2034, which reflects the impact of strategic investments on infrastructure. Nevertheless, growth will remain less than the historical growth rates of the sector, which amounted to 9.9% between 2015 and 2019, and there is a possibility to achieve higher growth if the Egyptian government succeeds in implementing its ambitious projects to develop infrastructure and urban development.
Also, the successful implementation of the reforms aimed at enhancing the participation of private sector and increasing competitiveness will lead to improving the business environment, which will have a positive impact on private infrastructure investments.
