Fitch Solutions expects Egypt’s real construction sector to accelerate in the coming years, supported by major infrastructure investments, urban expansion, and increasing private sector participation.

The Egyptian Cabinet’s Information and Decision Support Center highlighted a report by the U.S.-based Fitch Solutions titled “Egypt Construction Outlook,” which projects stronger growth for Egypt’s construction and building sector during fiscal years 2025/2026 and 2026/2027.

According to the report, the sector’s growth is forecast to rise from 4.1% in FY2024/2025 to 5.6% in FY2026/2027, before reaching 6.6% in FY2027/2028.

Over the medium term, the construction sector in Egypt is expected to expand at an average annual rate of 6.3% between 2026 and 2035, driven by economic recovery alongside long-term structural factors such as rapid urbanization and the increasing need for transportation networks, energy infrastructure, and other public utilities.

The report noted that construction activity in Egypt continues to be supported by large-scale projects in industrial and urban development, including mixed-use developments that are expanding urban areas and meeting growing demand for residential, commercial, and service spaces.

Expectations for the transport infrastructure sector also remain positive, backed by ongoing investments in container terminals and port expansion projects along both the Mediterranean and Red Sea coasts. These projects aim to strengthen Egypt’s position as a regional hub for transshipment and logistics services.

In parallel, Egypt is continuing to expand urban transport networks and intercity connectivity through modern railway projects, including the high-speed rail network that will extend approximately 2,000 kilometers and connect nearly 60 cities at speeds reaching 230 kilometers per hour, improving transport efficiency and reducing travel times between different regions.

Fitch’s report also pointed to expanding investment opportunities in the energy and utilities sector, as the rapid growth of non-hydropower renewable energy and the increasing role of the private sector support Egypt’s target of raising the share of renewable energy in electricity generation to over 60% by 2040.

This trend is expected to drive the launch of new projects in wind energy, solar power, and green hydrogen, while also boosting investments in water infrastructure, including desalination and water treatment facilities.

The report further indicated that declining inflation rates and increasing private sector investment are likely to support construction activity in the coming years. Over the long term, demographic growth, government incentives aimed at attracting private investment, and the persistent housing supply gap will remain key drivers of construction demand.

In the same context, the report noted that strong infrastructure activity, particularly in energy, utilities, and transport, underpins the positive outlook for Egypt’s construction sector. Infrastructure projects valued at over $30 million account for about 34.5% of the total value of construction projects in Egypt, with a combined value of approximately $166.6 billion, highlighting the central role of infrastructure in driving sector growth.

The Suez Canal Economic Zone is also playing a significant role in boosting construction demand by attracting industrial and logistics investments, leveraging Egypt’s strategic geographic location and the expansion of special economic zones. The zone has witnessed the launch of numerous industrial and logistics projects, creating sustained demand for industrial facilities and related infrastructure.