Egypt currency crisis stokes project delay fears
17 January 2023
Concerns about widespread infrastructure project delays are worsening in Egypt as the country’s currency crisis escalates.
The North African country has $368bn of active infrastructure projects, all of which could potentially be impacted by the turmoil to varying degrees.
This includes $90bn in chemical projects, $123bn in construction projects, $24bn in industrial projects, and $18bn in oil and gas projects.
A total of $119bn of these projects are under execution, while $249bn are in pre-execution phases.
Egypt pound hits record low
The Egyptian pound plunged to 31.95 to the dollar in state banks on 11 January, hitting a record low, before settling at 29.7 in the afternoon, according to the country’s central bank.
On the same day, it was reported that the Egyptian pound was trading at around 35 to the dollar on the black market.
The decline in the value of the Egyptian pound came after the IMF released a report relating to its $3bn financial support package to Egypt.
The report, issued on 10 January, stated that the country had agreed to a “flexible exchange rate regime” for the pound in order to receive the assistance.
Egyptian authorities also told the IMF that they would only intervene in foreign currency markets in cases of “excessive volatility”.
Economic hardships
The Egyptian pound has lost half of its value since March, causing the price of basic foods to triple and prompting a wide range of severe economic challenges.
Inflation continues to rise, with Egypt’s annual headline inflation hitting 21.9 per cent in December, and billions of dollars in goods are backlogged in Egyptian ports.
Many people are struggling to feed their families and this is stoking resentment against the government
Source in Egypt
Financing and procurement problems mean that many infrastructure projects that have been announced and are either in a pre-execution or execution phase are already experiencing or preparing to face delays.
Optimism about the prospect of new projects being announced has also declined as the government has pushed to reduce public spending.
Earlier this month, Egypt’s government instructed ministries to cut non-essential spending until the end of the fiscal year in June as it tries to cope with continuing pressure on its currency and rising inflation.
The 4 January decision includes postponing any new national project reliant on foreign currency.
It also requires ministries to seek Finance Ministry approval on foreign currency expenditure.
The health, interior, foreign and defence ministries are exempted, as well as agencies tasked with expenditure on subsidised food products and energy.
According to the decision, which was announced in Egypt’s official gazette, activities listed as non-essential spending include travel, marketing and conferences, as well as grants and training for employees.
Ports backlog
As the Egyptian pound came under pressure in February 2022, the central bank implemented changes to the rules around import financing that led to a huge backlog of goods at ports.
The worsening currency crisis has compounded the problems relating to the changes to the rules around import financing. However, over recent weeks Egypt has taken several measures to try to release these goods.
The efforts to restore order at the ports have included reversing the letter of credit (LC) system introduced in February last year and restoring the previous documentary collections system.
The decision to enforce the LCs system, effective since March, required Egyptian banks to accept only LCs for imports to curb dollar outflows from the country.
On 11 January, Egypt’s cabinet issued a statement saying that goods worth $1.5bn had been released from Egyptian ports over the first 10 days of the year.
This makes the total value of released goods since the start of December $8.5bn.
The goods that have been released include items required for industrial purposes as well as spare parts, medicine and food.
“The government has prioritised restoring order at the ports,” said one industry source. “There has definitely been progress, but the economic impact is still likely to be felt for years to come.
“It isn’t easy to untangle the backlog of containers as many perishable goods are now worthless and, in some cases, companies that were meant to collect items have gone bankrupt.”
Political instability fears
Stakeholders watching Egypt are also concerned about the possibility of political instability related to the economic problems.
One source said: “Across the board, citizens that are earning money in Egyptian pounds are seeing their purchasing power decimated.
“Many people are struggling to feed their families and this is stoking resentment against the government.
“Egyptian police forces have a reputation for dealing with protests with a heavy hand – and this means that many people are likely to be reluctant to go to the streets to demonstrate because of this.
“However, as the situation continues to worsen, some people may start to feel like they are desperate for change and have no other options left open to them.”
Some projects are likely to get through these issues with minimal disruption while others could potentially experience delays that last for years or even cancellations
Source in Egypt
On 10 January, President Abdul Fattah al-Sisi directed the government to continue releasing all goods stuck at the country’s ports and simplify all customs clearance procedures.
One source said: “Project exposure to the current currency crisis in Egypt is going to vary considerably.
“Some projects are likely to get through these issues with minimal disruption while others could potentially experience delays that last for years or even cancellations.”
Industrial projects, energy projects and construction projects all have the potential to be impacted by the ongoing turmoil in Egypt’s economy.
It is likely to have severe implications for some stakeholders within Egypt as well as ramifications for regional partners and suppliers.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Algeria tenders 310km Tamanrasset railway16 October 2026
-
Joint venture wins $246m RCRC bridges contract16 October 2026
-
Humain tenders 100MW Riyadh AI data centre16 October 2026
-
Adnoc Onshore seeks bids for Bu Hasa field EOR project16 October 2026
-
OTTCO issues tender for Oman oil storage park expansion16 October 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Algeria tenders 310km Tamanrasset railway
16 October 2026
Algeria’s state railway project developer, Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has invited national and international contractors to bid for the construction of a 310-kilometre (km) railway line between Hotel Station and Moulay Lahcen Station.
The planned line is a key segment of the proposed railway corridor connecting El-Menea, In-Salah and Tamanrasset across the southern wilayas of In-Salah and Tamanrasset.
The tender notice was issued on 12 October, with bids due by 10 November.
The tender is open to single contractors and consortiums. To qualify, single firms must have executed at least 200km of new railway lines or track-doubling works since 2010, with accepted project certificates covering sections of at least 100km, along with a cumulative 800 metres of railway bridges with individual spans exceeding 30 metres.
Bidders must also provide at least two rail-tamping machines, two ballast regulators, and a project director with an engineering degree and at least five years of railway construction management experience.
From a commercial and classification perspective, single bidders and consortium leaders must hold a category-nine (IX) professional qualification in public works.
Bidders must also demonstrate an average annual turnover in construction of at least DZ260bn ($1.96bn) across the 2023-2025 financial period.
For joint ventures, the cumulative turnover of all members must meet the $1.96bn threshold, with the consortium leader accounting for at least $1.3bn.
Offers must be accompanied by a bid bond exceeding 1% of the total bid value for submissions exceeding $7.4m, with proposals remaining valid for 90 days beyond the submission date.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20665591/main.jpg -
Joint venture wins $246m RCRC bridges contract
16 October 2026
A joint venture of local contractor Mofarreh Group and Turkey-based Gulsan Holding has won an estimated SR923m ($246m) contract from the Royal Commission for Riyadh City (RCRC) to construct a series of grade-separated steel flyovers across the capital.
The contract, known as Package 2 (Groups 2 and 3), is part of RCRC’s urgent bridges programme under the wider project to build steel bridges at 10 junctions across Riyadh.
The works have a 12-month execution timeline to fast-track traffic decongestion across major arterial corridors.
The joint venture’s scope covers the engineering and construction of grade-separated steel bridge interchanges across seven key intersections:
- IC04: Al-Khair Road and King Salman Bin Abdulaziz Road
- IC05: Prince Turki Road and Imam Saud Road
- IC06: Al-Takhassosi Road and Saeed Al-Sulami Road
- IC07: Khurais Road and Al-Hareth Bin Abdullah Road
- IC08: Khurais Road and Ash-Sharq Road
- IC09: Khurais Road and Marmar Road
- IC10: Al-Kharj Road and Al-Hilla Road
The total length of the flyovers is 8.86 kilometres, excluding Junction IC10.
In addition to the structural steel superstructures, concrete bridge foundations, decks and approach ramps, the contract includes retaining walls, utility diversions, temporary phased traffic arrangements, associated roadworks, drainage networks, roadway lighting, intelligent transportation systems and landscaping.
The client received commercial proposals from several local and international contractors. Other bidders included:
- Masco
- Nesma & Partners
- Al-Omaier Trading & Contracting Company
- Yuksel Saudia
- Batco
- Modern Building Leaders
- Sapac
The urgent bridges initiative is part of Riyadh’s rapid transport infrastructure programme to improve traffic throughput, enhance safety and ease vehicular congestion across central and ring-road corridors ahead of major events, including Expo 2030 and the 2034 Fifa World Cup.
In July, Mofarreh Group and Turkiye’s Gulsan Holding formed a joint venture to bid for and deliver transport infrastructure projects in Riyadh for RCRC.
The joint venture said it will target road, bridge, viaduct and interchange projects.
Mofarreh will provide local market access and operational capacity, while Gulsan will contribute international experience in large-scale transport projects.
The companies said the new venture will support knowledge transfer and localisation, and promote the use of international engineering and construction standards aligned with Saudi Arabia’s Vision 2030 infrastructure and sustainability goals.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20663255/main.png -
Humain tenders 100MW Riyadh AI data centre
16 October 2026
Register for MEED’s 14-day trial access
Saudi artificial intelligence infrastructure developer Humain has issued a request for proposals for an engineering, procurement and construction (EPC) contract to deliver a 100MW artificial intelligence (AI) data centre facility in Riyadh’s Al-Saad area.
The tender was issued on 17 September, with bids due by 8 November.
The contract includes core-and-shell works; civil works; mechanical, electrical and plumbing installation; testing and commissioning; and site infrastructure across a 350,200-square-metre plot.
The project also includes an optional expansion phase that could raise total site capacity to 200MW.
The initial 100MW development is split into two equal 50MW phases, structured across two single-storey IT buildings housing four 25MW data halls.
Phase one targets a ready-for-service date by October 2028, followed by phase two in January 2029.
Under the optional phase three, an additional 100MW facility would be brought online by July 2029.
The data centre will be designed to support high-density graphics processing unit clusters and AI-compute workloads, with rack densities of 240kW to 250kW.
The facility will be built to Uptime Institute Tier III topology and LEED Silver standards as a baseline, targeting LEED Gold.
The operational design targets an annualised power usage effectiveness below 1.35.
Power will be delivered through four 33kV connections supplied by Saudi Electricity Company from two separate high-voltage/medium-voltage primary substations. The scope requires 15 transformers, 15 static 2,250kW IT uninterruptible power supply (UPS) units, and 450kW mechanical UPS systems with lithium-ion battery storage for each 25MW block.
Backup emergency diesel generators will be provided on an owner-furnished, contractor-installed basis, with the EPC contractor handling their installation, connection and testing. Fuel storage will provide 24 hours of autonomous run-time, split between on-site underground bulk tanks and generator belly tanks.
Thermal management combines air and liquid cooling. High-density server racks will be equipped with direct-to-chip liquid cooling loops using coolant distribution units and technical water distribution, paired with air-cooled chillers operating in dual high- and low-temperature loops, alongside fan-wall units.
The total construction timeline is capped at 25 months from site handover or contract signing, with pre-execution early mobilisation scheduled to start in January 2027.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20661045/main.jpg -
Adnoc Onshore seeks bids for Bu Hasa field EOR project
16 October 2026
Register for MEED’s 14-day trial access
The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has sought bids from contractors for a key project to increase the oil production capacity of the Bu Hasa oil field, primarily through enhanced oil recovery (EOR) techniques.
The main objective of the Bu Hasa-Shuaiba EOR Unit 1 (Phase 1) project is to achieve a targeted 70% increase in oil production, extend the Bu Hasa field development’s production plateau and maximise the field’s potential in an economical manner.
The project aims to confirm and validate the optimum EOR technology for the top-ranked reservoirs/units; assess incremental recovery on top of the improved oil recovery (IOR) wedge; extend the field plateau for as long as is economically feasible; and achieve an ultimate recovery factor of 70% from the Shuaiba reservoir. It will evaluate and execute the recommended EOR option through pattern phasing for any technology proven by Adnoc.
Adnoc Onshore is understood to have issued the tender for the project on 20 September, with an initial technical bid submission deadline of 8 October, according to sources. The client later extended the technical bid submission deadline to 17 October, sources told MEED.
The chosen contractor will execute the project under a hybrid contracting strategy comprising:
- A lump sum (turnkey) EPC scope covering the complete pipeline system from East Hub to the separation plant
- A call-out-based scope for execution of all WAG injector and WSW tie-in works
Unless otherwise specified, all activities defined under the contractor’s scope will be deemed included within the lump-sum contract price. This will cover engineering, procurement, construction, testing, pre-commissioning and support to commissioning for a complete and operable system.
At the Bu Hasa field development, three remote degassing stations (RDS-1/2/3) and two satellite stations, Bida Al-Qemzan and Huwaila, are currently in operation. Production from oil wells completed in Shuaiba, Thamama B, Thamama F, Bida Al-Qemzan and Huwaila is routed via individual flowlines to the three remote degassing stations and the Bida Al-Qemzan and Huwaila stations across different parts of the field.
Combined production from the wells at each of these stations is routed to the central degassing stations (CDS) via transfer lines ranging from 16 inches to 24 inches in diameter. In addition, some wells in the central part of the field are connected directly to the CDS.
Previous studies have identified carbon dioxide (CO2) flooding as a promising tertiary recovery mechanism in the Shuaiba reservoir, delivering incremental recovery on top of the IOR wedge (P5 project), extending the field plateau as long as economically feasible, and achieving an ultimate recovery factor of 70% from the Bu Hasa Shuaiba units.
Located 200 kilometres south of Abu Dhabi city, Bu Hasa is Adnoc Onshore’s westernmost producing field. It is one of Abu Dhabi's biggest onshore assets, with crude oil production capacity of 650,000 b/d. It is also one of the Adnoc Group’s oldest oil fields, having been discovered in 1962 and in production since May 1965.
As part of the ongoing Bu Hasa Integrated Field Development Project (BUIFDP), 13 new well pads and two pad hubs have been added to the field. Oil, gas and water produced at these sites will be collected at a central gathering facility, then sent through production headers and transfer lines to the CDS for processing.
Adnoc Onshore is the Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d of oil and about 7 billion cubic feet a day of associated gas production from four main onshore field developments in Abu Dhabi: Bab, Bu Hasa, North East Bab and South East.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20639750/main0548.jpg -
OTTCO issues tender for Oman oil storage park expansion
16 October 2026
Register for MEED’s 14-day trial access
Oman Tank Terminal Company (OTTCO) has issued the main tender for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.
The project, titled Trade Bridge, involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.
The project represents the next expansion phase (phase 1.4) of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).
State-owned OTTCO issued the prequalification notice for the project on 28 July, with contractors submitting initial responses by 4 August and final responses by 19 August, MEED previously reported.
According to sources, OTTCO issued the main tender for EPC works on Project Trade Bridge in the weeks following completion of the prequalification exercise.
The following contractors, among others, are understood to have been prequalified by OTTCO to bid for Project Trade Bridge:
- China Petroleum Pipeline Engineering Company (China)
- China Tianchen Engineering Corporation (China)
- Daqing Oilfield Construction Group Company (China)
- Enppi Muscat (local branch of Egypt-based Enppi)
- Gulf Petrochemical Services & Trading (Oman)
- Hualu Engineering & Technology Company (China)
- Rotary Engineering (Singapore)
- Sinopec Ningbo Engineering Company (China)
OTTCO commissioned the first phase of the Ras Markaz crude oil storage park, covering 10 square kilometres and with a capacity of 26.7 million barrels, in December 2022.
The storage facility has two parts. The first is a marine services area, which includes a floating station for crude imports and exports. This zone is about 7 kilometres offshore and is connected via two 42-inch pipelines and associated facilities.
In water depths of up to 42 metres, the floating station can accommodate very large crude carriers. It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.
The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.
Region’s largest oil storage park
OTTCO will build the Ras Markaz oil storage facility in five phases over several years across an area of about 40 square kilometres, for which it signed a land agreement with Sezad in July 2017.
It will be able to hold 200 million barrels of crude a year. Total investment in the scheme is understood to be $5.2bn.
The storage terminal in the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil-derivatives production plants at Sezad via a pipeline that will supply crude feedstock to the refinery when required.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20638090/main0749.jpg