Egypt’s Construction Sector Poised for Rapid Growth Driven by Infrastructure and Urban Development, Fitch Solutions Report Highlights
The Information and Decision Support Center (IDSC) at the Egyptian Cabinet highlighted a report by Fitch Solutions titled “Egypt Construction Sector Outlook”, which projects accelerated growth in Egypt’s construction sector during fiscal years 2025/2026 and 2026/2027. The growth is expected to be supported by strong activity in infrastructure projects, particularly in energy, utilities, and transportation.
The report notes that this activity reflects Egypt’s continued focus on developing core infrastructure networks and enhancing economic capacity through strategic sector investments.
Fitch Solutions forecasts real growth in Egypt’s construction sector to rise from 4.1% in FY 2024/2025 to 5.6% in FY 2026/2027, and to 6.6% in FY 2027/2028. Over the medium term, the sector is expected to achieve an average annual growth rate of 6.3% between 2026 and 2035, driven by economic recovery, urban expansion, and ongoing demand for transport, energy, and general infrastructure.
The report highlights strong construction activity in industrial and urban development projects, including mixed-use developments that expand urban growth and meet increasing demand for residential, commercial, and service spaces.
Transportation infrastructure remains a key focus, with continuous investments in container terminals and port expansions on both the Mediterranean and Red Seas, reinforcing Egypt’s role as a regional logistics and transshipment hub.
Urban Transport Development
Egypt continues to enhance urban transport networks and intercity connectivity through modern railway projects, including the 2,000-kilometer high-speed electric train, connecting nearly 60 cities at speeds of up to 230 km/h. This is expected to improve transport efficiency and reduce travel times across the country.
The report also highlights expanding opportunities in the energy and utilities sector, as Egypt increases reliance on non-hydro renewable energy and encourages private sector participation, aiming for renewable energy to account for more than 60% of electricity generation by 2040. This is expected to drive new projects in wind, solar, and green hydrogen energy, along with investments in water infrastructure, including desalination and treatment.
Infrastructure Projects
Projects exceeding $30 million represent about 34.5% of total construction project value, totaling approximately $166.6 billion, underscoring the central role of infrastructure in sector growth. The Suez Canal Economic Zone also contributes to construction demand by attracting industrial and logistical investments.
The report concludes that major urban development projects, including the New Administrative Capital, Alamein Rom and Ras El Hekma on the northwestern coast, will continue to drive construction activity in the long term.