Construction sector in Egypt

Construction site in Cairo Egypt

Construction is one of the most active sectors of the Egyptian economy accounting for 15% of GDP with investment expected reach US$ 21bn by 2017.

Market overview

  • Egypt has the largest population in the Arab world (approximately 90 million) and is the fourth-largest economy.

  • Egypt is signatory to many regional and international Free Trade agreements which reduce or wave completely the custom duties on exported / imported goods.

  • The individual taxes are limited to 20% for annual income less than 250,000 EGP and 25% for exceeding values.

  • The corporate taxes are 20% over profits under 10,000,000 EGP and 25% over exceeding value.

  • Egypt is a leading manufacturer of reinforced steel in the Middle East. The Egyptian steel annual production has grown by 4% in 2012 to reach 6.75 million tons.

  • After regaining confidence in construction materials sector, Egyptian banks announced the provision of EGP 1.7 billion loans in 2012 to finance two new Steel manufacturing plants.

  • The Cement industry is witnessing a booming expansion since 2005 with around 19 factories scattered all over Egypt. The annual production of grey cement reached 56 million tons in 2012.

Key opportunities

  • The sector is starving for innovation, sustainable and smart design where UK excellence is internationally recognised.

  • There are a glut of major and diverse new projects, including high-end real estate, tourist and leisure developments, infrastructure projects, and social housing. There is an increasing demand for housing to cope with the increasing population.

  • The Egyptian government is planning to establish 44 new cities in all Egyptian governorates until 2052 with an annual budget of US$ 850 million which is considered part of the National Strategic Plan for urban development in Egypt.

  • The government is planning to establish “Airport City” beside the Cairo airport on a space of 410,000 meters with investments worth 20 Bn USD.

  • The government has planned to establish several conventional and renewable energy projects (Solar & Wind) including 3 new power stations and 10 new solar stations in several Egyptian governorates with investments worth 50 Bn EGP to generate additional capacity of 7,000 Megawatt as part of the government’s five-year electricity plan for 2012/2017.

  • The government has also planned to establish four nuclear power stations to generate electricity with a total capacity of 4000 MW by the end of 2025.

  • The Suez Canal corridor project is considered one of the most important projects on the Egyptian government’s plans to develop the East side of the Suez Canal. The project worth an estimated £20 billion over 15 years which will include; ports and logistics development; new industrial zones, and urban areas; and new transport infrastructure including railways and tunnels under the Suez Canal, power generation, water desalination and waste water treatment plants.

  • PPP is being encouraged to finance public sector projects, though it can be a slow process. Schools, public hospitals, water plants, roads and bridges are all current or potential PPP projects.

  • The government has dedicated 19.6 billion EGP in its budget for 2013-2014 for National Social Housing Project.

Latest export opportunities in the Construction sector

Latest export opportunities in Egypt

Getting into the market

The best business approach to the market is through finding local agent, distributor or partner. Having a local partner can be vital to successful penetration of the market. There are several reasons for this. Firstly, given the continuing bureaucracy, a local partner can shepherd the foreign business through the delays and obstacles. Secondly, foreign companies require a local agent to bid for government tenders. Thirdly, as the Egyptian market becomes more sophisticated there is a growing demand for after sales service, which a local agent can convincingly provide.

More about doing business in Egypt

Contacts

Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).

To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.

  • Sonia El-Kattan, British Embassy Cairo, Egypt; Tel: +202 27916000; Email: sonia.elkattan@fco.gov.uk

  • Yasmin Montasser, British Embassy Cairo, Egypt; Tel: +202 27916000; Email: yasmin.montasser@fco.gov.uk

UKTI Events

UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.

Major Events

Interbuild

www.agd-exhibitions.net

Metal & Steel

www.metalsteeleg.com

Latest events in the Construction sector

Useful links

More about OMIS and other UKTI services for exporters

Sectors: Construction
Countries: Egypt
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