As part of the regular monitoring conducted by the Information and Decision Support Center (IDSC) of the Cabinet of all matters raised regarding Egyptian affairs or falling within its scope of interest across international think tanks, research centers, global rating institutions, and various foreign news agencies, newspapers, and periodicals worldwide, the Center highlighted the report issued by the U.S.-based Fitch Solutions titled “Egypt Construction Outlook.”, Invest-Gate reports.

The report expects an acceleration in the growth of Egypt’s construction sector during fiscal years 2025/2026 and 2026/2027, supported by strong activity in infrastructure projects, particularly in the energy, utilities, and transport sectors. This momentum reflects the state’s continued direction toward developing core infrastructure networks and strengthening its economic capabilities through investment in strategic sectors.

Expected Acceleration in Construction Sector Growth through 2028

The agency’s forecasts indicated an acceleration in the real growth of Egypt’s construction sector in the coming years, as it is expected to rise from 4.1% in fiscal year 2024/2025 to 5.6% in fiscal year 2026/2027, and then to 6.6% in fiscal year 2027/2028.

Over the medium term, Egypt’s construction sector is expected to grow at an average annual rate of 6.3% during the period (2026–2035), driven by the interaction between economic recovery factors and long-term structural drivers such as urban expansion and the growing need for transport, energy, and infrastructure networks.

The report pointed to continued strong activity in Egypt’s construction sector, supported by large-scale projects in industrial and urban development, including mixed-use developments that contribute to expanding urban development and meeting the growing demand for residential, commercial, and service spaces.

Rising Investments in Transport, Energy, and Infrastructure

Expectations for the transport infrastructure sector also remain positive, supported by the ongoing implementation of investments in container terminals and port expansion projects along the Mediterranean and Red Sea coasts, aimed at strengthening Egypt’s position as a regional hub for transshipment and logistics services.
In the same context, Egypt continues to develop urban transport networks and connectivity between cities through modern railway projects, including the high-speed rail network, which extends for about 2,000 kilometers and connects nearly 60 cities at speeds of up to 230 kilometers per hour, enhancing transport efficiency and reducing travel time between different regions.
The Information Center noted that Fitch’s report also pointed to expanding investment opportunities in the energy and utilities sectors.

The expansion of non-hydropower renewable energy and the increasing participation of the private sector support the state’s target of raising the share of renewable energy in electricity generation to more than 60% by 2040. This is expected to drive the launch of new projects in wind power, solar energy, and green hydrogen, in addition to boosting investments in water infrastructure, including desalination and water treatment.

Major Urban Projects Driving Construction Demand

The report also expects that declining inflation rates and rising private sector investments will support construction activity. Over the long term, demographic trends, government incentives to attract private investment, and the significant housing supply gap will remain key drivers of construction activity.

In this context, the report explained that strong infrastructure activity—led by investments in the energy, utilities, and transport sectors—forms the foundation of the positive outlook for Egypt’s construction sector. Infrastructure projects valued at more than $30 million represent about 34.5% of the total value of construction projects in Egypt, amounting to approximately $166.6 billion, reflecting the central role of infrastructure in supporting the sector’s growth.

The Suez Canal Economic Zone also contributes to strengthening demand for construction by attracting industrial and logistics investments, benefiting from Egypt’s strategic geographic location and the expansion of special economic zones. The zone has witnessed the launch of a large number of industrial and logistics projects that support continuous demand for industrial buildings and related infrastructure.

The report concluded by emphasizing that major urban development projects will remain key drivers of construction activity in Egypt over the long term, including the New Capital project, which continues to expand the scope of urban development in Egypt, as well as the Al-Alamein–Ras El Hekma coastal development initiatives, including the Al-Alamein–Al-Roum project and the Ras El Hekma Peninsula on the northwestern coast.

Alongside these large coastal developments, other urban initiatives are expected to expand the pipeline of residential, commercial, and tourism projects, supporting the continued growth of Egypt’s construction sector in the coming years.