Egypt Construction Market to Grow by 6.5% in 2025, Driven by Foreign Direct Investment and Infrastructure Projects

Strategic Insights -

The Egyptian construction industry is expected to witness significant growth in 2025, driven by increased foreign direct investment, investment in oil and gas, industrial, and housing construction. According to the Central Bank of Egypt, the country's average construction production index grew by 9.2% year on year in the first two months of 2025. The government has also announced a budget of EGP4.6 trillion ($91.3 billion) for the fiscal year 2025-26, representing an 18% increase compared to the previous year. The Suez Canal Economic Zone has attracted 272 projects across its industrial zones between 2022 and March 2025, totaling EGP418.2 billion ($8.3 billion).

Key Takeaways:

  • The Egyptian construction industry is expected to grow by 6.5% in real terms in 2025, driven by foreign direct investment, oil and gas, industrial, and housing construction.
  • The country's average construction production index grew by 9.2% year on year in the first two months of 2025.
  • The government has announced a budget of EGP4.6 trillion ($91.3 billion) for the fiscal year 2025-26, representing an 18% increase compared to the previous year.
  • The Suez Canal Economic Zone has attracted 272 projects across its industrial zones between 2022 and March 2025, totaling EGP418.2 billion ($8.3 billion).
  • The construction industry's output is expected to register an annual average growth rate of 7.6% between 2026 and 2029, supported by investment in commercial, renewable energy, and transport infrastructure projects.
  • The Egyptian government aims to develop 10GW of renewable energy projects by 2028 under the Nexus of Water, Food, and Energy Program (NWFE Program).
  • The government plans to increase the share of renewable energy in the electricity mix to 42% by 2040, compared to 11.5% in 2024.

Statistics:

  • 6.5% growth rate of the Egyptian construction industry in 2025.
  • 9.2% increase in the country's average construction production index in the first two months of 2025.
  • EGP4.6 trillion ($91.3 billion) budget for the fiscal year 2025-26.
  • 272 projects attracted by the Suez Canal Economic Zone between 2022 and March 2025, totaling EGP418.2 billion ($8.3 billion).
  • 7.6% annual average growth rate of the construction industry between 2026 and 2029.
  • 10GW of renewable energy projects to be developed by 2028 under the NWFE Program.
  • 42% share of renewable energy in the electricity mix by 2040.

Sources:

  • ResearchAndMarkets.com
  • Central Bank of Egypt (CBE)
  • Suez Canal Economic Zone (SCZone)
  • Nexus of Water, Food, and Energy Program (NWFE Program)
  • Government of Egypt