Fitch: Egypt to Be MENA's Largest Construction Market by 2029

Fitch Ratings issued a report on the future expectations of the construction sector in the MENA region after the repercussions of the spread of the coronavirus, where Egypt is expected to surpass the rest of the markets in the long term.

The report included expectations that the construction sector in Egypt will continue its strong growth over the next ten years, so that the average annual growth rate will be 9% between 2020-24, after being affected in the near term by the corona pandemic.

As Egypt ranks fourth in the current stage as the largest construction market in the region, the Fitch report expects that by 2029, Egypt will have the largest construction and building market in the entire region, noting in the same context that Egypt has reported close rank with the United Arab Emirates (UAE), the strongest market in the region, and considered  higher than the global and regional average.

The report pointed out that Egypt registered the second strongest economy in the MENA region, and this was driven by a relative improvement in the economic outlook, after the country continued to score strong points in terms of short-term political and operational risks.

Fitch: Egypt's construction growth  is expected to record 9%

According to the Fitch report, the construction sector growth in Egypt is expected to reach the level of  9%, with expectations for expansion of 7.5% during 2020, less than Fitch's previous growth forecast by 9.7% before the corona pandemic.

Egypt would move during the forecast period from the fourth position as the largest construction market by industry value to the first position in the region as a whole by 2029.

Moreover, the value of the current construction industry in Egypt is about $ 25 billion, and it is expected that sustainable growth in the sector will push this value to reach more than $ 89 billion by 2029, which will make Egypt represent about 30% of the value of the construction industry in the entire region.

The report also praises the role of public-private partnerships run by the Ministry of Finance, which succeeded in improving transparency during the bidding process, translated into more confidence on the part of Investors and companies, as opportunities available in Egypt for green projects will continue in a way that exceeds its peers at the regional level, which is evident through the establishment of the new administrative capital.