Egypt’s construction market is the most successful in the entire Middle East and North Africa (MENA) region despite its current economic conditions, according to HSBC’s MENA Construction report that was released last week, Daily News Egypt reported.
In spite of the pound devaluation and price increase, the success of Egypt’s construction sector is a result of several infrastructure projects that were launched and have generated good profit margins, according to the report.
The report predicted, this success is to grow further throughout 2017, with an estimate of a 95% increase in cash spending unlike those of GCC countries; the report has expected a shrink in performance. For example, Saudi Arabia is claimed to witness a 15% decrease in cash spending.
HSBC MENA Construction Report ranked Orascom Construction and El- Sewedy Electric the best in cash metrics with Orascom owning a geographical diversity in portfolio across the MENA region with 72.5% of backlog and 27.6% in the U.S. Furthermore, the report emphasized that the company has managed projects better than others in the construction sector with sales averaging 13%, achieved over the past five years, compared to an average of 49% across all the MENA contractors, stated Amwal EL Ghad.