The Crisis Management Committee of the Egyptian Federation for Construction and Building Contractors (EFCBC) has proposed seven measures aimed at supporting the stability of Egypt’s real estate development and construction sectors amid the impact of successive global and regional crises since 2022.
The recommendations were outlined in a comprehensive study prepared by the committee, chaired by Daker Abdel Laah, Head of the Crisis Management Committee and a member of EFCBC’s Real Estate Development Division.
The study examines the impact of successive global and regional crises on Egypt’s construction and real estate sectors between 2022 and 2026, including the Russia-Ukraine war, global inflation, rising interest rates, the war in Gaza, disruptions to shipping in the Red Sea, and broader regional tensions.
Abdel Laah said these developments have led to sharp increases in the prices of building materials and energy, as well as financing and construction costs, placing growing pressure on contractors and real estate developers.
He added that extended project implementation periods and rising overall development costs have further intensified the financial challenges facing companies operating in the sector.
The committee noted that the Egyptian government has introduced a range of measures and incentives in recent years through the Cabinet, the Central Bank of Egypt, the Ministry of Housing, the New Urban Communities Authority, and the Administrative Capital for Urban Development (ACUD) to help mitigate the economic impact on the sector.
However, Abdel Laah said continued economic and geopolitical volatility requires additional measures to preserve market stability and ensure the sustainability of investments.
The study recommends updating the legislation governing the sector to reflect rapidly changing economic conditions while maintaining a balanced approach that protects the interests of all stakeholders across the real estate and construction industries.
It also calls for rebalancing the financial terms of contracts, particularly long-term contracts, to account for significant changes in the costs of building materials, energy, operations, and construction.
The committee further proposed introducing more flexible mechanisms to address price differences and reduce the impact of sharp fluctuations in construction input costs on companies and projects.
It also called for the launch of accessible financing programmes for contractors and real estate developers to help them complete projects despite higher interest rates and rising borrowing costs.
Another recommendation is the establishment of a permanent crisis management mechanism comprising representatives from government entities, the private sector, and relevant industry associations. According to the study, the mechanism would monitor economic and market developments and enable early intervention before the effects of future crises escalate.
The study also recommends developing proactive plans to secure the construction sector’s requirements for building materials, energy, and production inputs, while reducing the impact of external shocks and supply chain disruptions on the domestic market.
In addition, the committee called for stronger cooperation between the government and the private sector in formulating policies and regulations governing the industry to ensure faster responses to economic developments and support the sustainability of investments and projects.
Abdel Laah said the study is intended not only to address the impact of previous crises but also to establish a practical framework for responding to future economic and geopolitical developments in a way that supports market stability, protects investments, and strengthens companies’ ability to continue operating.
He revealed that the committee plans to submit the study to the Cabinet, the House of Representatives, the Senate, the Ministry of Housing and Utilities, the Administrative Capital for Urban Development (ACUD), the Central Bank of Egypt, the Egyptian Federation for Construction and Building Contractors, and other entities involved in real estate development to review the recommendations and assess their potential contribution to future sector policies.
Abdel Laah stressed that the real estate and construction sectors remain among the key drivers of the Egyptian economy because of their direct contribution to investment, employment, and a wide range of related industries.
He concluded that maintaining the stability of both sectors is essential to sustaining economic growth and supporting the continued implementation of Egypt’s urban expansion and development plans in line with the objectives of Egypt Vision 2030.
