Sunday 5 July 2020

Egypt construction sector 'riding on $348bn projects'

CAIRO, August 12, 2018

With more than 1,400 active construction projects worth $348.2 billion in Egypt, the country is going through a phase of economic prosperity across the board and especially in the construction sector, said a report ahead of The Big 5 Construct Egypt expo.

To be held from September 18 to 21 at the Egypt International Exhibition Centre (EIEC), The Big 5 Construct Egypt will help connect industry experts, buyers and manufacturers of construction products from all over the world.

The Big 5 is a series of construction trade fairs originating in Dubai aimed at connecting international suppliers of construction products and services with buyers from the Mena region.

Last year, Egypt’s construction market output recorded a 10 per cent growth, as opposed to an average annual growth rate of 5.3 per cent over the previous four years, stated the report by BNC.

The report entitled “Urban Construction in Egypt” complements the arrival of The Big 5 Construct Egypt event in the country.

Of the $348 billion worth of projects coming up in Egypt, the most notable are $3.8 billion-Mountain View iCity in New Cairo and $3.7 billion-Citadel Refinery in Cairo, it stated.

Over 68 per cent of projects, with a combined value of $142 billion are in their advanced stages of development, while an estimated $178.4 worth of projects are in their early stages highlighting the projected growth of construction in Egypt, the report added.

Commenting on the event, Josine Heijmans, the portfolio director of The Big 5 Construct Egypt, said: "The steps taken by the Egyptian government since 2016, especially the launch of the reform programme, have been very encouraging and set the stage for a new era."

"Egypt’s GDP growth is steady, inflation is declining, tourism and remittances are on the rise and foreign reserves are increasing. All of that and more are driving the economy in general, and the construction market specifically towards new frontiers," she remarked.
"Coming to Egypt now, The Big 5 Construct Egypt will bring with it a wealth of knowledge to industry professionals, business development opportunities and will help drive FDI into the sector through the participation of some of the world’s most renowned names in construction," she added.

Heijmans said the urban construction sector, which comprises buildings, mega urban developments, religious buildings, hospitality buildings, healthcare facilities, retail facilities and leisure facilities, was helping to drive economic growth in the overall construction sector in Egypt and the economy as a whole.

Most project investments in the urban construction sector are residential/commercial buildings and mega urban developments valued at $90.5 billion, making up 79 per cent of all project values in the urban construction sector.

The hospitality industry plays a major role as well, comprising 86 active projects with an estimated value of $8 billion, making up 13 per cent of all project values in the urban construction sector, stated Heijmans.

The Big 5 Construct Egypt could not have come at a better time for the country, with an overall positive market wide outlook, said the BNC report.

Growing confidence indicates a positive year ahead for the construction sector in Egypt, which is expected to continue in the coming years, it added.

The Big 5 Construct Egypt is a free for all event, offering 360-degree solutions for the Egyptian built environment, connecting industry experts, buyers and manufacturers of construction products from all over the world, said the organisers.

More than just an exhibition, the event will also feature free-to-attend CPD (continuing professional development) certified workshops. It will host 15 country pavilions, including Germany, Italy and Spain. Greece has also secured a prominent space, becoming the official country partner for the launch edition of the event.

The Big 5 Construct Egypt is supported by the Egyptian Federation for Construction and Building Contractors (EFCBC), the African Federation for Construction Contractors Associations (AFCCA), the Egyptian Chamber of Building Material, and the Arab water council.

Some of the largest industry players have partnered up with the event, including the international Underwriters Laboratories (UL), the Saudi-based Al Bawani Company, the Egyptian companies Sphinx Glass, Ezzsteel, Kandil Steel and Al Sherif Group.-TradeArabia News Service

Tags: Cairo projects |

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