CAIRO, Mar 17 – Egypt’s construction sector is projected to accelerate steadily over the next three years, with growth expected to reach 6.6% by the 2027/2028 fiscal year, according to a new outlook by Fitch Solutions.
The sector is forecast to expand from 4.1% in FY2024/2025 to 5.6% by FY2026/2027, before climbing further, supported by sustained investment in infrastructure, urban development and energy projects. Over the longer term, growth is expected to average 6.3% annually between 2026 and 2035.
Infrastructure development remains a central driver. Projects valued above $30 million account for about 34.5% of the total construction pipeline, with an estimated value of $166.6 billion. Activity is particularly concentrated in transport, energy and utilities, reflecting government efforts to strengthen economic capacity through large-scale investments.
Transport infrastructure continues to attract funding, with ongoing expansion of ports along the Mediterranean and Red Sea coasts. At the same time, Egypt is advancing its high-speed rail network, a project spanning around 2,000 kilometres and linking roughly 60 cities at speeds of up to 230 kilometres per hour.
Urban expansion is also shaping demand, with large mixed-use developments driving construction across residential, commercial and industrial segments. The Suez Canal Economic Zone remains a key hub, drawing industrial and logistics investments that are supporting demand for new facilities.
In the energy sector, growing investment in renewable sources, including wind and solar, is expected to support the government’s target of raising renewable energy’s share in electricity generation to over 60% by 2040. This is expected to drive further construction activity across power and water infrastructure.
