BMI View: Strong government support for PPPs reinforces our positive outlook for Egypt's construction industry in the short-to-medium term . Rising foreign investor interest in this market and a growing and increasingly diversified project pipeline bode well for infrastructure development in Egypt.
Foreign direct investment (FDI) as well as development assistance will continue to be fundamental for Egypt's infrastructure development. As political stability and policy clarity, as well as pent-up demand, entice investors back into the country, our Country Risk team expects a significant upswing in FDI inflows into Egypt over the coming quarters.
Key Trends And Developments
The Egyptian government has the announced that it will tender 12 public-private partnerships (PPP) in the next 15 months. According to the Egyptian Ministry of Finance's PPP Central Unit, the new PPPs will be worth around USD4bn and will cover projects across all sectors.
An unprecedented number of project announcements as well as financing deals to support infrastructure development in Egypt have prompted us to revise upwards our construction industry value forecasts from FY2016 (July 2015 to June 2016) to FY2020.
China will become an increasingly prominent player in the development of Egypt's infrastructure sector over the next decade. Attractive financing deals and significant expertise in the development of large-scale infrastructure projects - particularly in the transport sector - will allow China to gain market share, considerably altering the competitive landscape.
Given Egypt's large and growing project pipeline, we believe the country will face capacity constraints most acutely in the labour market - a significant risk to project implementation.
Economic growth in Egypt will pick up over coming quarters on the back of relative political stability. Fixed investment will be the primary driver of growth as a result of greater clarity on the economic policy front. Our Country...
The Egypt Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Egypt Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Egyptian infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Egypt to test other views - a key input for successful budgetary and planning in the Egyptian infrastructure market.
- Target business opportunities and risks in the Egyptian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Egypt.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.