Egypt is one of the few projects markets in the Middle East and North Africa (MENA) region to have continued to grow over the past three years during a period of lower oil prices. Driven by strong economic and demographic growth, and a self dependence on gas, the country is going through a real estate boom.
There’s no secret as to why this is. A population that grows by close to 2 million people a years creates massive demand for housing, education, healthcare and other associated social infrastructure. Whereas the GCC is facing a demand slump, the demand for new projects in Egypt has never been stronger.
As such, demand on contractors and for construction materials is unprecedented as the projects supply chain rushes to keep up the rapid pace of development. Megaprojects like the new administrative capital and New Alamein City are themselves triggering a societal shift given their huge size and political significance.
Added momentum is also given by the dramatic political and economic changes Egypt went through over the past decade. The two revolutions and the devaluation of the Egyptian Pound slowed project development, with the effect that that the country is now making up for this lost time.
Of course, the coronavirus pandemic could put a halt to this optimism. Despite its large size, the majority of the population live along a small strip of the Nile resulting in crowded cities susceptible to the fast spread of the virus. Already the government has announced a postponement of major projects and a delay in the opening of the new capital as a direct result of COVID-19. It remains to be seen how much damage the virus will have on the economy and projects market as a whole.
Egypt Projects H1 2020 is the update to last year’s H1 report. Focused on data, it is aimed at helping companies create strategies for targeting and growing the market. It uses almost exclusively data from MEED Projects, the region’s leading online projects tracking service. With 15,000 active projects tracked and more than 35,000 in total in the database, MEED Projects makes it possible to quantify current, historical and future trends in the projects market in the region.
All the MEED Insight reports are delivered via email in digital version.