Egypt’s infrastructure, construction and real estate sector is a major economic driver and a foundational component of national commerce, accounting for 20-23% of GDP and 8 million jobs. Prior to 2011, the sector had been growing rapidly since the 1980s, fuelled primarily by government-led investment initiatives to develop the country’s infrastructure as well as a substantial boom in the residential and commercial real estate markets. The Egyptian real estate industry has been one of the prime drivers of economic growth in the country over the last decades, achiev- ing signi cant milestones in the last few years, though the turmoil of the January 2011 revolution has had a nega- tive impact on the sector.
Following Egypt’s 2011 uprising and the ensuing economic instability, the sector took a major hit as funding dried up together with building pipelines, the land banks of major developers came under scrutiny, labour strikes persisted, and the government found itself unable to nance needed infrastructure projects. Shortages of essential construction materials led to increased costs and in ation and the devaluation of the Egyptian pound have been further obstacles to recovery in the sector in 2016. Despite this, increasing government support for PPPs and rising levels of foreign investment will support strong growth within the domestic infrastructure and construction sectors through 2016.