Infrastructure carries Egypt construction
8 February 2024
This package on Egypt’s construction and transport sectors also includes:
> UK and Egypt sign infrastructure agreement
> Egyptian developer launches $974m mixed-use project
> China State tops out El Alamein towers
> AD Ports signs agreement to build terminal at Egypt port
> ADQ and Adnec invest in Egypt hospitality group
> Cairo monorail nears completion
> Egypt 2024 country profile and databank
After years of continuous growth, Egypt’s construction sector is showing signs of wobbling amid the country’s economic troubles.
The value of construction and transport contract awards in Egypt has grown every year since 2015 and rose to a record high in 2022, according to regional projects tracker MEED Projects. It grew by 57.7% to $20.5bn in 2021 – from $13.0bn in 2020 – before rising again by 42.9% to $29.3bn in 2022.
The surge in contract awards was driven by the Egyptian government’s efforts to further economic development through infrastructure expansion and construction sector stimulation.
Cairo has pursued ambitious national projects in multiple sectors, including energy, transport and urban development. Increased government spending as part of this public infrastructure investment and favourable market conditions played a pivotal role in driving project activity growth.
However, the abrupt decline in the value of construction and infrastructure contract awards in 2023 to $10.2bn raises questions about the sustainability of the dynamics at play in the sector.
The downturn in activity could indicate that budget constraints and shifting government priorities are leading to project pipelines being reworked or deprioritised. Egypt faces significant global economic headwinds and, amid plans for further reform under the latest IMF packages, there is the potential for further fiscal re-evaluation to impact the sector.
The stepped devaluation of the Egyptian pound over the past two years, in a series of moves towards a free-floating currency, has created additional uncertainty for the construction sector through soaring inflation, which reached a high of 36.8% in June 2023 – in turn stressing supply chains and inflating costs.
The IMF suggested last year that Egypt should curb its project spending. At the same time, the government has said its major projects are vital for the country’s development and a vehicle for GDP growth.
Egypt’s President Abdel Fattah El Sisi has also pledged that national projects and ongoing infrastructure schemes, including the high-speed railway network, roads and bridges, hospitals and several new cities, would continue.
El-Sisi secured a third term in office in December last year. Under his presidency, Egypt has seen repeated rounds of currency devaluation, rising inflation and a mounting debt burden – to which his proponents point to the improved security situation and the monumental infrastructure projects completed as emblematic of the achievements under his tenure.
Railway schemes
The standout feature of the country’s immediate project pipeline is a series of major railway projects that make up $4.2bn, or 91%, of the $4.6bn-worth of construction and transport projects under bid.
The two largest upcoming projects are for work on metro schemes: the $750m lot two phase one Alexandria Metro package and $750m of work on the modernisation of Cairo Metro Line 1's Helwan to El Marg Line.
Schemes on the Alexandria Metro are the next biggest pending awards. Egyptian National Railways has received bids for the $450m Cairo-Alexandria signalling systems scheme, and bidding is ongoing on lots one and two of the Alexandria Raml tram rehabilitation project.
With the ongoing currency and inflation crisis, Egypt is trying to use more local resources to further reduce its imports of construction materials. However, the demand for foreign expertise remains strong in sectors such as rail.
The country has recently awarded several significant rail contracts to consortiums of local and foreign players. In September, Egypt’s National Authority for Tunnels (NAT) and the French-Egyptian consortium of the local Orascom Construction and Colas Rail signed a $1.39bn contract to build the Alexandria metro system.
The contract award was for the first phase, which spans 21.7 kilometres and encompasses 20 stations connecting downtown Alexandria with Abu Qir.
Then in November last year, NAT and the local Orascom Construction signed agreements for the construction works on two metro projects.
The first contract covers the civil works for the Cairo Metro Line 4 package CP402. The underground line, which runs from Giza to Fustat, connects to existing lines 1 and 2.
For the second agreement, Orascom Construction, as part of the joint venture, will execute the mechanical, electrical and plumbing works for all stations on the first line of Egypt's new high-speed railway.
The consortium of Thales and Orascom Construction also won a $367m contract in September from Egyptian National Railways to modernise and upgrade the Cairo-Beni Suef railway corridor in Egypt.
With nearly $300bn of projects planned and under way across the construction and transport sectors, Egypt represents the third-largest projects market in the Middle East and North Africa region, after Saudi Arabia and the UAE.
The market prospects come with significant caveats, however. Although the pipeline of projects looks robust, the economic volatility presents a strong downside risk, at least in the short term.
Looking ahead, international contractors could be attracted by Egypt’s pitch to host the Olympic Games in 2036. If the bid is successful, the preparations and new infrastructure required will see Egypt’s construction sector moving from regional to international importance over the coming decade.
MEED’s March 2024 special report on Egypt also includes:
> Cairo beset by regional geopolitical storm
> More pain for more gain for Egypt
> Familiar realities threaten Egypt’s energy hub ambitions
> Egypt’s desalination projects inch forward
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
Read the April 2026 MEED Business Review2 April 2026
-
-
Construction to start for Egypt animal feed project2 April 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
-
Saudi Arabia seeks firms for food testing labs PPP project
2 April 2026
Saudi Arabia’s Ministry of Municipalities & Housing, in collaboration with the National Centre for Privatisation & PPP (NCP), has issued an expression of interest (EOI) notice for a contract to develop and operate municipal food safety laboratories under a public-private partnership (PPP) framework.
The project will be delivered on an equip, operate, maintain and transfer basis, with a contract duration of five years.
The EOI was issued on 1 April, with a submission deadline of 15 April.
The project scope covers the equipping, operation and maintenance of municipal food safety laboratories across five municipalities: Hafr Al-Batin, Northern Borders, Tabuk, Qassim and Al-Ahsa.
Key objectives include upgrading laboratory equipment, expanding chemical and microbiological testing capacity for food and water products, and enhancing testing accuracy to support laboratory compliance across the value chain. The project also aims to ensure effective knowledge transfer and a structured handover to the relevant municipalities at the end of the contract term.
NCP said in a statement: “The project is intended to strengthen public health and safety standards for citizens and residents of the kingdom in alignment with Saudi Vision 2030, while developing the municipal monitoring ecosystem, optimising food and water testing services, and enabling private sector participation in accordance with global best practices.”
In October last year, NCP highlighted the scale and diversity of opportunities in the kingdom’s PPP pipeline.
“At the moment, we have around 200 projects in the pipeline with a total value of roughly $190bn,” said Salman Badr, executive vice president – infrastructure advisory, NCP, during a MEED webinar.
The projects are spread across 17 sectors. “We have a very sizable programme, and it reflects the breadth of the kingdom’s transformation agenda,” he said.
NCP was established in 2017. It serves as the central authority and catalyst for designing and implementing privatisation and PPP projects across the kingdom.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16236864/main.gif -
Read the April 2026 MEED Business Review
2 April 2026
Download / Subscribe / 14-day trial access When the first missiles and drones were fired at the GCC on 28 February, the region’s economic story pivoted abruptly, from long-term vision-building to near-term resilience.
The conflict is now the Gulf’s most consequential economic stress test in a generation. It is challenging the safe haven premium that underpins capital inflows, while disrupting the physical networks that keep the region’s economies running, from energy exports and shipping lanes to airports and tourism.MEED editor Colin Foreman asks whether the GCC can sustain investor confidence as energy assets, trade routes, airports and banks absorb the shock. Read more here.
April’s market focus is on Saudi Arabia, where the Iran war is compounding the logic behind the kingdom’s strategic pivot in its investment plans.
This edition also includes MEED’s 2026 GCC contractor ranking, in which Chinese firms have surged to the top as Saudi spending cuts and geopolitical risks weigh on GCC construction activity.
In the latest issue, we explore the region’s evolving arbitration landscape; present exclusive leadership insight from Jacobs on the future of passenger rail in the Middle East; and talk to Leyla Abdimomunova, head of real estate and construction at the Public Investment Fund’s National Development Division, about remaking Saudi construction.
We hope our valued subscribers enjoy the April 2026 issue of MEED Business Review.
Must-read sections in the April 2026 issue of MEED Business Review include:
> AGENDA: Gulf economies under fireINDUSTRY REPORT:
GCC contractor ranking
> Construction guard undergoes a shift> LEGAL: Redefining the region’s arbitration landscape
> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race
> INTERVIEW: Leyla Abdimomunova, National Development Division, PIF
> LEADERSHIP: Shaping the future of passenger rail in the Middle East
> SAUDI MARKET FOCUS:
> COMMENT: Risk accelerates Saudi spending shift
> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
> DOWNSTREAM: Saudi downstream projects market enters lean period
> POWER: Wind power gathers pace in Saudi Arabia
> WATER: Sharakat plan signals next phase of Saudi water expansion
> CONSTRUCTION: Saudi construction enters a period of strategic readjustment
> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push> MEED COMMENTS:
> Iran war erodes LNG’s image of reliability
> Dubai's real estate faces a hard test
> Energy resilience matters as much as capacity
> Drawn-out conflict may shift planning priorities> GULF PROJECTS INDEX: Gulf index rises amid tensions
> FEBRUARY 2025 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The end of the republic and the end of times
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16222272/main.gif -
Consultants submit bids for Al-Maktoum airport metro link
2 April 2026
French firm Egis has emerged as the lowest bidder for the design contract for the Route 2020 extension, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.
Egis submitted the lowest bid, priced at AED232.6m ($63.3m).
The other bidders are:
- Halcrow International (UK): $66.4m
- Parsons (US): $71.3m
- Aecom (US): $82.6m
- Surbana Jurong (Singapore): $106m
The extension to the line will run for about 3 kilometres (km) and will feature two stations.
MEED understands that the invitation to bid was issued in January with a submission deadline of mid-March.
The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
The Roads & Transport Authority (RTA) awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.
Dubai’s plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to Al-Maktoum International airport. There are long-term plans for further extensions.
Other metro projects
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.
The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.
The other metro lines in the pipeline are the Purple Line and the Pink Line, both of which are in the early stages of development.
Firms are also bidding to update the emirate’s rail masterplan. In October 2025, MEED reported that 10 firms had submitted offers to undertake the project.
The rail masterplan study will update and modify the RTA’s rail network, which includes the Dubai Metro and Dubai Tram. These plans will support Dubai’s 2040 urban masterplan, which aims for all residents to be within a 30-minute metro or light-rail trip to their place of work.
The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.
There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services as well as a high-speed rail connection.
In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.
The Blue Line consists of 14 stations, including three interchange stations at Al-Jaddaf, Al-Rashidiya and International City 1, as well as a station in Dubai Creek Harbour. By 2040, daily ridership on the Blue Line is projected to reach 320,000 passengers. It will be the first Dubai Metro line to cross Dubai Creek, doing so on a 1,300-metre viaduct.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16233295/main.jpg -
Construction to start for Egypt animal feed project
2 April 2026
Egypt’s Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, expects to start construction for its planned animal feed manufacturing plant within three months, according to industry sources.
The facility is due to be developed at Industria Asher in Egypt’s 10 Ramadan City, on a site covering around 34,000 square metres.
On 13 March, Elsewedy Industrial Development announced that it had signed a land agreement with New Hope Egypt, part of China’s New Hope Liuhe Group, to establish the new facility.
The plant is expected to have an annual production capacity of 400,000 tonnes of poultry and aquaculture feed products.
Approximately 50,000 tonnes a year of output is expected to be exported.
The project is projected to create around 500 direct jobs and up to 10,000 indirect jobs across supply chains and supporting services, according to Elsewedy Industrial Development.
The planned facility will be New Hope’s fifth production plant in Egypt, where the group has been operating since 2011.
Financial details for the new investment were not disclosed.
New Hope has said that its total investments in Egypt have reached about E£2.7bn ($51.5m), including four existing feed production plants and a chick-hatching company.
The company added that sales in the Egyptian market reached nearly 800,000 tonnes in 2025.
MEED’s March 2026 report on Egypt includes:
> COMMENT: Egypt’s crisis mode gives way to cautious revival
> GOVERNMENT: Egypt adapts its foreign policy approach
> ECONOMY & BANKING: Egypt nears return to economic stability
> OIL & GAS: Egypt’s oil and gas sector shows bright spots
> POWER & WATER: Egypt utility contracts hit $5bn decade peak
> CONSTRUCTION: Coastal destinations are a boon to Egyptian constructionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16226686/main.jpg -
Saudi Arabia prepares to tender 2GW battery storage project
2 April 2026
Saudi Power Procurement Company (SPPC) is preparing to begin procurement for the long-awaited 2,000MW first phase of a major battery energy storage system (bess) project catering to the grid.
The project, first mooted in 2023, is likely to be tendered this quarter, according to an industry source.
SPPC plans to procure up to 10GW, equivalent to 40 gigawatt-hours (GWh), of bess capacity by 2030.
As MEED understands, the bess project will be developed using an independent power producer (IPP) model.
MEED previously reported that the principal buyer conducted a market-sounding event for the project in December 2023, in line with a plan to launch the procurement process for one-fifth of that capacity the following year.
Since then, SPPC has procured and awarded developer contracts for four solar IPP projects and one wind IPP under round six of the kingdom’s National Renewable Energy Programme (NREP).
However, the bess IPP project has yet to advance to the next stage.
The 2GW first phase of the project involves building multiple battery energy storage systems across multiple locations, with individual capacities ranging from 50MW to 300MW.
The planned bess facilities are to be built near demand centres. They will boost the electricity grid’s spinning reserves as more renewable energy enters its electricity production mix.
Bess comprises rechargeable batteries that can store and discharge energy from various sources when needed. It is one of the key solutions being considered to address the intermittency of renewable energy sources.
US/India-based Synergy Consulting is advising SPPC on the planned bess IPP.
Growing renewable capacity
In 2023, Saudi Arabia raised its renewable energy target to 130GW by 2030. To achieve this, the kingdom needs to add approximately 20GW of capacity a year.
Since then, momentum for wind and solar projects has gathered pace as Saudi Arabia advances successive procurement rounds under the NREP.
In October 2025, SPPC awarded contracts to develop and operate five renewable energy projects under round six of the NREP.
These comprise four solar PV IPP projects and one wind IPP project, with a total combined capacity of 4,500MW.
By the end of 2025, the total renewable energy capacity tendered by SPPC under the NREP had reached 64GW, with the total signed capacity, following the signing of round six contracts, standing at 43.2GW.
The renewable energy programme aims to supply 50% of the kingdom’s electricity from renewable energy by 2030.
Developers are currently preparing bids for the seventh round of the NREP, which was tendered in January and will add 5,300MW of capacity.
The round includes four solar projects – Tabarjal 2 (1,400MW), Mawqqaq (600MW), Tathleeth (600MW) and South Al-Ula (500MW) – and two wind schemes: Bilgah (1,300MW) and Shagran (900MW).
Bids for the Bilgah and Shagra wind projects are due by 14 May, while the submission deadline for the remaining projects is 30 April.
MEED’s April 2026 report on Saudi Arabia includes:
> COMMENT: Risk accelerates Saudi spending shift
> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
> DOWNSTREAM: Saudi downstream projects market enters lean period
> POWER: Wind power gathers pace in Saudi Arabia
> WATER: Sharakat plan signals next phase of Saudi water expansion
> CONSTRUCTION: Saudi construction enters a period of strategic readjustment
> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure pushTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16219505/main.jpg