Egypt’s construction sector is expected to maintain strong growth momentum through 2035, supported by major infrastructure investments and large-scale urban development projects, according to a report reviewed by the Information and Decision Support Center (IDSC).
The IDSC cited forecasts by Fitch Solutions, which anticipate accelerating real growth in Egypt’s construction sector over the coming fiscal years.
According to the report, sector growth is projected to increase from 4.1% in FY 2024/2025 to 5.6% in FY 2026/2027, before rising further to 6.6% in FY 2027/2028.
Fitch attributed the positive outlook to sustained momentum in infrastructure projects, particularly in the energy, utilities, and transport sectors. These investments reflect Egypt’s ongoing strategy to strengthen its economic capabilities through the expansion and modernisation of core infrastructure networks.
Over the medium term, the construction sector is expected to grow at an average annual rate of 6.3% between 2026 and 2035. The projected expansion will be driven by a combination of economic recovery and structural factors, including rapid urbanisation and rising demand for modern transport and energy systems.
The report also highlighted continued momentum in transport infrastructure, including investments in container terminals and port expansion projects along the Mediterranean and Red Sea coasts. These developments aim to reinforce Egypt’s position as a regional logistics and transshipment hub.
Urban transport projects are also advancing, particularly the development of modern railway systems. The planned high-speed rail network, extending around 2,000 kilometres and linking approximately 60 cities at speeds of up to 230 kilometres per hour, is expected to enhance connectivity and reduce travel times across the country.
In the energy sector, Fitch pointed to expanding investment opportunities in renewable energy and utilities. Growth in non-hydropower renewable sources, alongside greater private-sector participation, is expected to support Egypt’s goal of increasing the share of renewable energy in electricity generation to more than 60% by 2040.
This transition is likely to drive new projects in wind and solar power, green hydrogen, and water infrastructure, including desalination and treatment facilities.
The report added that declining inflation and rising private-sector investment could further support construction activity. Over the longer term, demographic growth, government incentives aimed at attracting private capital, and the persistent gap in housing supply are expected to remain key drivers of the sector’s expansion.
Infrastructure projects valued at more than $30m currently account for about 34.5% of the total value of construction projects in Egypt, which is estimated at approximately $166.6bn. This highlights the central role of large-scale infrastructure initiatives in sustaining sector growth.
Industrial and logistics investments within the Suez Canal Economic Zone are also expected to support demand for industrial buildings and related infrastructure, benefiting from Egypt’s strategic geographic location and the expansion of special economic zones.
Meanwhile, large-scale urban developments, including the New Administrative Capital and coastal projects such as Ras El Hekma, are set to remain key growth engines for Egypt’s construction sector in the coming years.
Fitch concluded that continued infrastructure expansion, urban development initiatives, and increased private-sector participation will support the long-term growth trajectory of Egypt’s construction market.
