The report predicts that, in the medium term, the Egyptian government’s privatization drive will increase the scope for private sector participation in the country’s infrastructure sector
Photo by Ivan Henao, Unsplash
Fitch Solutions predicts that the Egyptian construction industry will increase by 6.8% year on year, followed by average annual growth of 7.4% between 2024 and 2027. These predictions were published in their Egypt Infrastructure Report.
The report predicts that, in the medium term, the Egyptian government’s privatization drive will increase the scope for private sector participation in the country’s infrastructure sector and support construction growth.
"We expect the conditions currently sustaining robust regional outperformance in Egypt's construction market - strong economic growth, ongoing political and macro-economic stability, and a young and growing population - to remain in place over the coming years," the Egypt Infrastructure report said.
The report also expected that Saudi and UAE-based investors will be key strategic partners for the Egyptian government throughout the early stages of the divestment program, likely creating significant opportunities for contractors and other infrastructure companies from those markets.
Earlier this month, Central Agency for Public Mobilization and Statistics (CAPMAS) data showed that UAE investments in Egypt reached $5.7 billion during the 2021/2022 fiscal year, a 300.8% increase from $1.4 billion in the previous fiscal year of 2020/2021.
