Egypt’s construction sector is expected to maintain strong growth momentum through 2035, driven by major infrastructure investments and large-scale urban development projects, according to a report reviewed by the Information and Decision Support Centre (IDSC).
The IDSC cited projections from Fitch Solutions, which anticipate an acceleration in real growth across Egypt’s construction sector over the coming fiscal years.
According to the report, sector growth is projected to rise from 4.1 percent in the 2024/25 fiscal year to 5.6 percent in 2026/27, before reaching 6.6 percent in 2027/28.
Fitch attributes the positive outlook to sustained momentum in infrastructure projects, particularly in the energy, utilities and transport sectors.
These investments reflect Egypt’s strategy to strengthen its economic capacity through the expansion and modernisation of critical infrastructure.
Over the medium term, the construction sector is expected to grow at an average annual rate of 6.3 percent between 2026 and 2035.
This expansion will be driven by a combination of economic and structural factors,
including rapid urbanisation and rising demand for modern transport and energy systems.
The report also highlights continued dynamism in transport infrastructure, notably investments in container terminals and port expansion projects along the Mediterranean and Red Sea coasts.
These developments are aimed at reinforcing Egypt’s position as a regional logistics and transshipment hub.
Urban transport projects are also advancing, particularly the development of modern rail systems.
A planned high-speed rail network spanning approximately 2,000 kilometres and linking around 60 cities at speeds of up to 230 km/h is expected to enhance connectivity and reduce travel times nationwide.
In the energy sector, Fitch pointed to growing investment opportunities in renewables and utilities.
The expansion of non-hydropower renewable energy sources, combined with increased
private sector participation, is expected to help Egypt achieve its target of raising the share of renewables in electricity generation to over 60 percent by 2040.
This transition is set to drive new projects in wind and solar energy, green hydrogen and water infrastructure, including desalination and treatment facilities.
The report added that easing inflation and rising private investment could further support construction activity.
Over the longer term, population growth, government incentives to attract private capital, and a persistent housing deficit are expected to remain key drivers of sector expansion.
MK/AK/lb/jn/APA