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Fitch Solutions Predicts Accelerated Growth in Egypt’s Construction Sector

Egypt: Egypt's construction sector growth is expected to accelerate in the fiscal years 2025/2026 and 2026/2027, driven by strong activity in infrastructure projects, particularly in the energy, utilities, and transport sectors. According to a report by Fitch Solutions reviewed by the Cabinet's Information and Decision Support Center (IDSC), the momentum reflects the government's continued focus on expanding infrastructure networks and strengthening economic capacity through investment in strategic sectors.

According to State Information Service Egypt, Real growth in Egypt's construction sector is forecast to rise from 4.1% in the fiscal year 2024/2025 to 5.6% in 2026/2027, and further to 6.6% in 2027/2028. Over the medium term, the sector is expected to grow at an average annual rate of 6.3% between 2026 and 2035. This growth will be supported by economic recovery and long-term structural factors such as urban expansion and rising demand for transport, energy, and infrastructure networks.

Major urban development projects are anticipated to remain key drivers of construction activity over the long term. These include the New Administrative Capital, as well as the coastal developments of Ras El-Hekma and Alam El-Roum. Additionally, other initiatives aimed at expanding residential, commercial, and tourism projects are expected to contribute significantly to the sector's growth in the coming years.

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