BMI's Executive Summary

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The Arab Republic of Egypt in northeastern Africa is home to a vibrant construction industry. The sector has witnessed strong growth in the recent past on account of growing investments from the Gulf countries and state-led programmes of economic reform. With major privatisation and investment activity expected in the Egyptian infrastructure sector during 2007-2008, this uptrend is likely to continue. This report forecasts Egypt's domestic construction industry to log an average growth rate of 5.71% over the 2008- 2012 period.

Recent state initiatives to evolve an integrated transport strategy, construct 14 new cement plants and implement eight new oil and natural gas projects have added impetus to the rising infrastructure investments. Other major infrastructure projects span across tourism, transport, development of airports and ports, and industrial construction. Growing tourism into Egypt – expected to reach 15mn visitors per annum by 2010 – has made the local hotels and resorts industry a hotbed for foreign investment. Further, investments in development projects under the State Development Plan 2007-2012 are soon expected to top US$2bn.

All, however, is not well with Egypt's construction industry. Though most construction requirements are satisfied locally, rising fuel costs and removal of subsidies have resulted in soaring costs and irregular supplies. Its other negatives stem from rising real estate costs making housing unaffordable for a large portion of the Egyptian population. Moreover, with past attacks such as the one on the Red Sea resort of Sharm el-Shaikh in July 2005, the threat of terrorism continues to impact tourism revenues.

Notwithstanding these factors however, a mix of right policies and state-led infrastructure projects will continue to drive the Egyptian construction sector and also encourage foreign investment in the country. BMI forecasts the industry to rise from an estimated US$4.83bn in the year 2007 to over US$5.01bn by 2008 and further to near US$9bn by the year 2012.

Chapter 1 - Executive Summary

Chapter 2 - Industry Trends and Development

Market Overview

Egypt’s Economy in 2005-2006

Egypt’s Construction Sector in 2005-2006

Major Companies

Some Recent Investment Initiatives

Key Projects

Transport

Tourism

Residential and Commercial Construction

Table: Egypt Major Infrastructure Projects

Chapter 3 - Business Environment

Table: Middle East/Africa Business Environment Ranking

Business Attractiveness Rankings – Methodology

Middle East/North Africa Region

Egypt: Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 - SWOT Analysis

Egypt Infrastructure Industry SWOT

Egypt Economic SWOT

Egypt Political SWOT

Egypt Business Environment SWOT

Chapter 5 - Industry Forecast Scenario

Table: Construction Industry – Historical Data And Forecasts

Risks

Chapter 6 - Macroeconomic Outlook

Broad-Based Growth Looks Sustainable

Risks To Outlook

Table: Economic Indicators

Chapter 7 - Country Snapshot: Egypt Demographic Data

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages per year

Chapter 8 - Competitive Landscape

Company Monitor

Arab Contractors

Orascom Construction Industries

Hassan Allam Sons Group

Arab International Constructors (AIC)

Chapter 9 - BMI Forecast Modelling

How we generate our industry forecasts

Construction Industry

Sources

Chapter 10 - Appendix: Regional Demographic Data

The Long View: Data Over The Economic Cycle (2000-2007)

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Competitive Landscape for Middle East & Africa Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Middle Eastern & African Infrastructure Sources

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BMI's Middle Eastern & African Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: