Egypt Construction Market to Grow by 6.5% in 2025, Supported by Increase in FDI

Strategic Insights -

The Egyptian construction industry is poised for significant growth, with a projected increase of 6.5% in real terms in 2025. This growth is expected to be fueled by an increase in foreign direct investment (FDI), as well as investments in oil and gas, industrial, and housing construction. The country's average construction production index has been growing steadily, with a 9.2% year-on-year increase in the first two months of 2025. The government's fiscal year 2025-26 budget also allocates a significant amount for government expenditure, further boosting the industry.

Key Takeaways:

  • The Egyptian construction industry is expected to grow by 6.5% in real terms in 2025, driven by an increase in FDI and investments in oil and gas, industrial, and housing construction.
  • The average construction production index grew by 9.2% year-on-year in the first two months of 2025, indicating a positive trend in the industry.
  • The government's fiscal year 2025-26 budget allocates EGP4.6 trillion ($91.3 billion) for government expenditure, a significant increase from the previous year.
  • The Suez Canal Economic Zone (SCZone) has attracted and secured 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 investments 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) and increase the share of renewable energy in the electricity mix to 42% by 2040.
  • The government plans to develop 32 hydrogen plants with a combined investment of EGP5.4 trillion ($107.2 billion) by 2030, initially producing 3.2 million tonnes of hydrogen per year, increasing to 9.2 million tonnes by 2040.

Statistics:

  • The average construction production index grew by 9.2% year-on-year in the first two months of 2025.
  • The government's fiscal year 2025-26 budget allocates EGP4.6 trillion ($91.3 billion) for government expenditure.
  • The Suez Canal Economic Zone (SCZone) has attracted and secured 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.
  • The Egyptian government aims to develop 10GW of renewable energy projects by 2028.
  • The government plans to develop 32 hydrogen plants with a combined investment of EGP5.4 trillion ($107.2 billion) by 2030.

Sources:

  • Central Bank of Egypt (CBE)
  • Suez Canal Economic Zone (SCZone)
  • Egypt's Fiscal Year 2025-26 Budget
  • ResearchAndMarkets.com - "Egypt Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report