The economic output of Egypt's construction industry is poised for significant expansion, with an expected annual average growth rate of 7.6% between 2025 and 2028, according to a recent report by GlobalData.

Substantial investments in transport, power, housing, and hydrogen infrastructure projects, as well as the government's ambitious renewable energy targets, are anticipated to drive the growth.

One of the key projects that will drive future growth is the $35bn 170 million-square-metre Ras El-Hekma project announced by Abu Dhabi-based holding company ADQ in early 2024. ADQ has appointed its subsidiary Modon Holding as the project master developer for the first phase, which will cover 50 million sq m. The remaining 120 million sq m will be developed in partnership with private developers.

Another key project contributing to this growth is the Egyptian Electricity Transmission Company's (EETC) plan to construct a 10GW wind farm in West Suhag. The £E423.1bn ($10bn) project is expected to generate 47,790GWh of clean energy annually, reducing Egypt's carbon emissions by 9% or 23.8 million tons of CO2 a-year by 2030.

The government is also focusing on water desalination projects in addition to renewable energy. In September 2024, Egypt invited bids for the first phase of a large-scale water desalination project, aiming to build renewable energy-powered plants with a total capacity of 8.85 million m/day by 2050. The first phase will include 15 plants with a combined capacity of 3.35 million m/day by 2025, attracting £E126.9bn ($3bn) in investment.

Significant developments in the commercial and residential sectors are also expected to bolster the construction industry's growth. For instance, Magnom Properties plans to start construction on the £E42.3bn Forbes International Tower in Egypt's New Administrative Capital in 2025.

In the residential sector, Gates Developments announced four new projects in September 2024, including the £E40bn Lyv Caesar project, to be completed by 2026. Furthermore, the government's efforts to provide affordable housing and improve living conditions for citizens are also contributing to the industry's growth.

The Social Housing and Mortgage Finance Fund reported that the government disbursed £E74bn in mortgage loans to over one million residents as of September 2024. These developments and the government's renewable energy targets are expected to boost Egypt's construction industry in the coming years significantly.