Egypt is deemed one of the region’s “brightest spots,” where construction is expected to expand by an annual average of 11.3% between 2019 and 2023, Invest-Gate reports.
This is owed to building over 23 new cities and adopting Egypt’s National Strategic Plan for Urban Development 2052, according to UK-based data analytics and consulting company GlobalData’s latest report, called “Global Construction Outlook to 2023 – Q3 2019 Update.”
“Egypt’s economy is forecast to expand at a relatively rapid rate over the next two years, driven by sustained growth in natural gas production and a recovery in tourism. Delivering an ambitious renewable energy program is also a priority for the government,” Yasmine Ghozzi, an economist at GlobalData, was quoted as saying.
However, the report revealed that Saudi Arabia will lead the boom as it remains the largest regional construction market in the Middle East, following a recent recovery in oil prices.
“The construction market started on a positive note in Saudi Arabia in 2019, growing by 1.3% year-on-year (YoY) in Q1 in real value-add terms, attributed to rising oil prices and a surge in the non-crude sector. The significance of construction in Saudi Arabia is accentuated by key transport and mobility schemes such as Riyadh Metro, social infrastructure developments such as the Ministry of Housing’s ‘Sakani’ program, and energy megaprojects such as the state-owned Aramco’s Berri and Marjan oil fields,” Ghozzi further stated.
GlobalData noted that construction in the Middle East and North Africa (MENA) region is generally enduring a relative lackluster growth in 2019, with a growth rate of 3.3%, yet the pace projected to accelerate throughout the forecast period to reach 4.9% by 2022-23.
Ethiopia is also on the right track and is set to be Africa’s star performer, with its construction industry continuing to improve in line with the country’s economic expansion plans. However, the pace of development is anticipated to ease back to single-digits, according to GlobalData’s latest report.