analysis of egypt’s construction projects market...nat - cairo metro network: line 6 4,000...

ANALYSIS OF

EGYPT’S

CONSTRUCTION

PROJECTS MARKET

Source: MEED Projects

Egypt in 2018 was the second biggest projects market in the MENA

region. In total, more than $20bn of real estate and civil infrastructure

projects worth $50m or above have been awarded in over the past two

years alone. Everywhere across Cairo, huge billboards advertise

dozens of new real estate developments demonstrating vividly the

scale of the opportunity.

2015 2016 2017 2018

Value of contracts awarded in Egypt all sectors,

2015-18 ($m)

30,000

20,000

10,000

0

MARKETSIZE

3Source: MEED Projects

The key and perhaps best-known active

construction project in Egypt is the new

Administrative Capital to the east of Cairo.

Involving the creation of totally new from the

ground-up city, the multi-billion-dollar project

will host the government when it is complete

as well as tens of thousands of new

residents. Work on the massive project is

well under way, with hundreds of individual

contracts already awarded.

Other significant active real estate and civil

infrastructure contracts include the huge

new New Alamein City on the North Coast,

the new Egyptian Grand Museum, a host of

new hotel and tourism developments, and

the expansion of the existing Cairo metro

network.

ACCUD - The Capital Cairo: Central BusinessDistrict 3,0002,800ACCUD- TheCapitalCairo:CentralBusinessDistrictPha se2 1,350NUCA - The New Mansoura City

NAT - Cairo Metro Network: Line 3 - Phase 3: El-

Thawra Line CivilWork1,2441,240

NAT - Light Rail Transit : LRT Line (66 kms)

NAT - Cairo Metro Network: Line 4: Phase 1:

Civil Package 1 (CP401) 950Hassan Allam Properties-ElMostakbal City HAPTown Residential Complex 800

MHUUD - Rod El Farag Highway 790Madaar Development - Azha Ain El-Sokhna (Phase I) 750745Almarasem Development - Fifth Square 600SCZONE - Al Sokhna Port Second Basin Developme nt 535NAT - Cairo Metro Network : Line 3 - Phase 4: Pack age 4B

NAT - Cairo Metro Network: Line 3 - Phase 3:

Electromechanical Works 530500Palm Hills / Madinet Nasr : Capital Garden

450MAF -Almaza City Centre 400Egypt National Cancer Institute - National Cancer Institute

PROJECT VALUE ($M)

2018 SELECTEDEGYPT CONTRACT AWARDS

4

Both local and international firms have been able to take advantage of the opportunity which again

demonstrates the openness of the local market. Chinese contractors which have been able to bring

financing have in particular been successful in the market.

Egypt selected top construction and infrastructure contractors by value of work under execution($m)

0 1,000 2,000 3,000 4,000 5,000 6,000

CHINA STATE CONSTRUCTION & ENGINEERING

CORPORATION

ORASCOM CONSTRUCTION

HASSAN ALLAM CONSTRUCTION

THE ARAB CONTRACTORS

PETROJET

CONCORD FOR ENGINEERING &

CONTRACTING

SIAC CONSTRUCTION

UI NASR HOUSING &

DEVELOPMENT

TOP CONTRACTORS

With the Arab world’s largest population of around 100

million people, Egypt already has a considerable

latent demand for housing and social infrastructure.

But add in population growth of more than 1 million

each year, a population density rate of 46,000 per

square kilometre in Cairo, and the fact that more than

50% of the population is below the age of 25, there

have the perfect ingredients for a sustainable

construction boom for years, if not decades, to come.

The market has been considered by strong economic

growth of more than 5% in 2018, and a construction-

focused government which is prioritising delivery of

projects and industrialisation strategy. Egypt’s rapid

repositioning from a net gas importer four years ago to

net exporter today thanks to the fast-tracked

development of the offshore Zohr gas field has helped

underpin this economic recovery and support the

state’s projects drive.

EGYPT ECONOMIC INDICATORS, 2018

Nominal GDP ($bn), 2017 299

Real GDP growth, 2017e (%) 4.2

Real GDP growth, 2018f (%) 5.2

Non-oil real GDP growth, 2018f (%) 4.2

Oil real GDP growth, 2018f (%) 22.8

Crude oil production (million b/d) 0.6

Natural gas production (billion cf/d) 5.1

Fiscal breakeven oil price ($/barrel) 55.0

Fiscal balance (% of GDP) -10.0

Government debt (% of GDP) 91.2

Current account balance (% of GDP) -4.4

Official reserves ($bn) 35.5

CPI inflation (%) 10.4

Unemployment rate (% of labour force) 11.1

KEY DRIVERS

Source: MEED Projects5

Chemical Construction Gas Oil Transport

Egypt has well over $300bn of known planned and un-awarded projects which gives it a project pipeline larger than

any other regional market bar Saudi Arabia and the UAE. Construction is by far the largest future market in the country

with more than $120bn worth of planned projects and growing.

Value of Egypt planned and un-awarded contracts by sector ($m)

120,000

100,000

80,000

60,000

40,000

20,000

0

FUTURE PIPELINE


Narrowing down, the value of planned and un-awarded construction projects in Egypt is $186bn. To put it into context, this

makes it the third largest future market in the MENA region behind Saudi Arabia and the UAE. Given the high population

growth rate in the country, the market is going to continue to grow and at one point may well overtake itsneighbours

Egypt is in fact the only country in MENA where overall spending on projects has grown in the past two years, and it has

overtaken Saudi Arabia has the second largest single projects market in the region has a whole, recording in 2018 more

than $33bn of contract awards.

Value of planned and un-awarded construction projects in Egypt and other selected MENA markets($m)

250,000

200,000

150,000

100,000

50,000

0Bahrain Egypt Kuwait Oman

MARKET SIZE


MFTI - Golden Triangle Mining and Urban Development 29,000

MoHUUD – Egypt's Social Housing Program 16,600

Al Habtoor Group - Al Habtoor City inCairo 8,500

Palm Hills Developments - 6 October City : Badya 8,494

MOT - Alexandria-Aswan High Speed Railway Line: Cairo toLuxor 6,335

MOT - Luxor-Hurghada Railway Line 4,730

Saudi MOT / Egypt MOT JV - King Salman Causeway (TiranCauseway) 4,000

NAT - Cairo Metro Network: Line 6 4,000

Heliopolis For Housing & Development / SODIC - Mixed Use Project in Cairo 3,800

NAT - Cairo Metro Network: Line 5 3,500

Egypt MOT - Alexandria: Max New Port 3,378

NUCA - 6th October City ResidentialCommunity 3,000

NUCA / Mountain View / Sisban Holding JV - Mountain View I-City 6thOctober 2,000

Jumeirah Real Estate / Sakan Developments JV - Jumeirah Bay Ras El Hekma 1,680

MoH - JANNA Housing Project Egypt 1,500

Atraba Integrated Holding – Integrated Medical City Project inCairo 1,000

MoHUD – Alamein City Hotels Development Program atMatrouh 1,000

DPA - Second Container Terminal (DEPCO) 1,000

There are hundreds of future construction and civil infrastructure contracts across Egypt ranging from large-scale real

estate and tourism projects to high speed railway and metro schemes. In all, there has never been a better time to invest

in the Egyptian market opportunity

FUTURE SELECTEDEGYPT PROJECTS

Project Value ($m)


Commercial, 1584, 1% Education,1866, 1%

Healthcare, 4266, 2%

Hospitality, 3958, 2%

Leisure, 3330, 2%

Residential, 33969, 18%

Infrastructure, 59241, 32%

Mixed-Use, 71772, 38%

Terminal, 5739, 3%

Retail, 1125, 1%

Of the nearly $200bn worth of future construction projects in Egypt, more than $71bn are mixed-use comprising a

combination of residential, retail, leisure and commercial usage. Almost $60bn comprises infrastructure work to support

these developments, and more than $40bn consists of solely residential projects, highlighting the huge, rising demand

for more housing in the country where the population grows by almost 2 million everyyear

Breakdown of planned and un-awarded Egypt construction sector projects($m)

MARKET SIZE


Of the future total, just under $10bn worth of contracts are currently in bid where the main construction tender has been

issued and bids in some cases already submitted.

Of the remainder, more than $90bn of future projects are in design stage, indicating that they are due to come out to

contractors to bid over the next 24 months or so. Longer term, there are nearly $75bn worth of projects in the study

stage, highlighting the healthy pipeline of projectactivity.

Breakdown of planned and un-awarded Egypt construction sector projects by status($m)

In bid, 9590, 5%

Study, 73546, 42%

Design, 93856, 53%

MARKET SIZE


12Source: MEED Projects

…

The two largest future clients in Egypt are the Ministry of Transport and the Ministry of Housing Utilities & Urban

Communities which are responsible for the country’s main infrastructure and public housing projects. The National

Authority for Tunnels (NAT), the main client on Cairo’s metro network, is ranked third in terms of future work. Several

private sector real estate developers also feature such as Emaar Misr, Palm Hills, Sakan Developments and Jumeirah

Real Estate

Egypt selected top construction and infrastructure clients by value of work planned($m)

0 5,000 10,000 15,000 20,000 25,000

Egypt Ministry of Transport

Egypt Ministry of Housing Utilities & Urban Communities

National Authority for Tunnels

Palm Hills Developments

Al Habtoor Group

New Urban Communities Authority

Heliopolis For Housing & Development / Six of October

Egypt Ministry of Investment and International Cooperation

NMC Healthcare

Saudi Arabia Ministry of Transport

Atraba Integrated Holding Co

Mountain View / Sisban Holding JV

General Organisation of Physical Planning

Emaar Misr

Jumeirah Real Estate Investment

Sakan Developments

Al Masryeen for Medical Care

Egyptian National Railways

Hyde Park Properties for Development

Al Ahly For Real Estate Development

TOPCLIENTS

SOME ACTIVE PROJECTS

New Grand Egyptian Museum

Scope:

One of the largest museum

development projects in the world.

Land area is 470,974 squaremeters

divided into main museum and

conference center building with

area of 133,282 square meters.

Developer: Ministry of Culture

Stage: Nearing completion

Estimated value: $810 million

13

New El-Alamein city

Scope:

A new mixed-use integrated city to

accommodate more than 3 million

people in phase 1. The development

calls for construction of 20,000

residential units and 25,000 hotel

rooms in the first phase alone.

Developer: Ministry of Housing

Stage: Construction

Estimated value: $5 billion

14

New administrative capital

Scope:

New administrative capital of Egypt.

725 square km of land

21 residential areas

650 km of roads

Capacity for 6.5 million people

Developer: Administrative Capital

for Urban Development

Stage: Construction

Estimated value: $45 billion (Phase 1)

15

High-speed rail plans

17

Scope:

500 km of high speed modern rail

network linking north and south Egypt

and linking the Mediterranean with

the Red Sea. The network consists of

three main lines.

Developer: Ministry of Transport

Stage: In bidding


Rod al-Farag Axis

Scope:

The Rod Al Farag Axis received

The Guinness World Record for the

widest suspension bridge in the world.

The bridge is 540 meters long and

67.3 meters wide.

It has 6 lanes in both direction. The

suspension towers are 92 meters high

with 160 cables each.

Developer: Ministry of Transport

Stage: Complete

Estimated value: $9.6 billion

17

Badya Palm Hills

Scope:

40,000 units residential development

in 6th October City. The project

Includes a shopping mall, schools,

hotels and commercial offices.

Developer: Palm Hills Developments

Stage: Design


18

Jumeirah Bay Ras el-Hekma

Scope:

1.1 million square meters waterfront

project with 3,500 residential units in

seven zones surrounding a 270,000

square metre lagoon. The project

features a 2 km beach, shopping mall

and a hotel.

Developer: Jumeirah Real Estate and

Sakan Developments

Stage: Design


19

Al Habtoor City Cairo

Scope:

Three 5 stars hotels, three luxury

residential towers, six mid-rise

residential buildings, 204 luxury villas,

An international school, shopping mall

and polo club with two polo fields.

Developer: Al Habtoor

Stage: Study


20

Mostakbal City

Scope:

Integrated mixed-use green city

on 11,000 acres along the Cairo-Suez

road. The development is divided into

five phases. 50% of the project land is

dedicated for open green spaces.

Developer: El Mostakbal Urban

Development

Stage: Construction


21

Hyde Park New Cairo

Scope:

An integrated 18,000 units residential

project in New Cairo

Developer: DP World

Stage: Construction


Scope:

3,000 villas and townhouses, and

88 residential buildings. The project

is built on 4.7 million square metersof

land and includes an office park, retail

complex, schools and healthcare

facilities.

Developer: Hyde Park Properties

Stage: Construction


22

Cairo Metro Lines 3 and 4

Scope:

Line 3 calls for the constructionof

47.87 km of track and 39 stationsand

is carried out in four phases. Line 3

links Cairo airport,Abbasiya,

Ataba, Cairo University and

Rod El Farag.

Line 4 Phase 1 is 18.8 km linking

Hadayek El Ashgar in Giza to

El Malek El Saleh station in Cairo.

It comprises 17 stations.

Developer: Egypt National Authority

for Tunnels

Stage: Construction


23

© 2013 MEED Insight

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Meryem Haddadi – Sales Manager

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E: [email protected]

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analysis of egypt’s construction projects market...nat - cairo metro network: line 6 4,000...

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