Meed | Infrastructure carries Egypt construction

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

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Yasir Iqbal

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Abu Dhabi mends fences with Riyadh
9 October 2026

Ongoing political turmoil in the region may be prompting Abu Dhabi to review its approach to key diplomatic issues, not least its relations with its larger neighbour, Saudi Arabia.

In late September, UAE Vice-President Sheikh Mansour Bin Zayed Al-Nahyan travelled to Riyadh for talks with Crown Prince Mohammed Bin Salman and Defence Minister Prince Khalid Bin Salman. Such visits may have been commonplace in the past, but over the past year they have been relatively rare, given the friction between the two Gulf powers over issues such as the conflict zones of Yemen and Sudan, relations with Israel and economic rivalry.

At the start of the year, the UAE retreated from Yemen under pressure from Riyadh, after the UAE-backed Southern Transitional Council made rapid territorial gains at the expense of Saudi-backed groups and advanced close to the kingdom’s southern border.

Since then, against the backdrop of the Iran war, relations have shown further signs of strain, with cross-border financial transactions reportedly being blocked or delayed.

However, there have been intermittent attempts to present a more collegial relationship, such as in July, when a photo emerged on social media of Sheikh Mansour and Prince Khalid posing with their arms around each other, reportedly while on holiday in Europe.

Yemen dynamics

Gains by another group in Yemen may lie behind the latest rapprochement between Riyadh and Abu Dhabi. The visit by Sheikh Mansour on 29 September came in the wake of significant advances by the Houthis, who had recently captured Mokha port and strategically significant areas of land overlooking the Bab El-Mandeb Strait – heightening their ability to menace passing ships.

Saudi Arabia has been leaning on its allies – particularly Pakistan and Turkiye – to support its campaign against the Houthis. It is unclear whether the UAE would be willing to get involved militarily in Yemen again, or whether Riyadh would be happy for it to do so, but it could still be a useful ally in the fight. Analysts have noted that UAE-backed forces have, over the years, had a far greater record than anyone else of scoring battleground victories against the Houthis.

It is also notable that Mansour’s delegation to Riyadh included several senior security officials, including Ali Bin Hammad Al-Shamsi, secretary general of the Supreme Council for National Security; Ali Saeed Matar Al-Neyadi, chairman of the National Emergency, Crisis and Disaster Management Authority; and Nasser Humaid Al-Nuaimi, secretary general of the Tawazun Council for Defence Enablement.

The visit was a surprise, given the GCC states’ lack of unified action this year amid the crises in Yemen and Iran. Speaking at an event in Washington in mid-September, Bernard Haykel, professor of Near Eastern Studies at Princeton University, noted that: “Despite the fact that [the GCC states] all face a common threat in Iran and its proxies, you still don’t see real coordination between them. You still have these differences between the Saudis and the UAE, for instance; you have differences between the Qataris and the UAE. If anything would have united them, this would be it. And you don’t see that kind of unity.”

Writing for the Arab Gulf States Institute in early October, Kristian Coates Ulrichsen, a Baker Institute fellow for the Middle East at Rice University, said Mansour’s visit to Riyadh in late September was “likely meant to signal that the thaw [in bilateral relations] was real” and “designed to enable a more coordinated approach to managing the forces ranged against the Houthis in southern and central Yemen”.

Further signs of warming ties came on 8 October, when UAE Investment Minister Mohamed Hassan Alsuwaidi signed a memorandum of understanding with Saudi Industry and Mineral Resources Minister Prince Abdulaziz Bin Salman covering power grid interconnections, trade in electricity and freight rail connectivity.

On the same day, the Saudi ambassador to the UAE invited President Sheikh Mohamed Bin Zayed Al-Nahyan to attend a GCC-EU Summit in Saudi Arabia later in the month.

Sheikh Mansour was not the only senior Emirati on diplomatic manoeuvres in recent weeks. The day after the vice-president was in Riyadh, national security adviser Sheikh Tahnoun Bin Zayed Al-Nahyan was in Muscat for talks with Sultan Haitham Bin Tariq Al-Said.

Oman is a critical partner for the UAE in several areas. Omani ports have provided a trade lifeline for Emirati importers and exporters at a time when ports in Dubai and Abu Dhabi have been sidelined by Iran’s threats against shipping through the Strait of Hormuz. Muscat’s approach of maintaining dialogue with all actors means it is also able to mediate with both Iran and Yemen’s Houthis.

Strategic independence

The flurry of diplomatic activity may be a sign of closer coordination between the UAE and its neighbours on some critical issues, but that does not necessarily herald a sea change in its approach.

Speaking at the UN General Assembly in New York on 28 September, Minister of State Khalifa Shaheen Al-Marar reviewed the crises in Iran, Sudan, Gaza, Ukraine and elsewhere and said “the importance of developing and reforming regional and international multilateral institutions … remains paramount” – but while he name-checked the UN, he did not mention the GCC.

It is also notable that the UAE has not yet joined either of the two security initiatives launched by Saudi Arabia during the summer: a maritime defence alliance designed to protect shipping in the Red Sea, or a mutual defence pact that Riyadh signed with Turkiye and Pakistan.

In his speech to the UN, Al-Marar listed what he saw as the main pillars of the UAE’s national strength: “strategic independence” was the first item in his list.

https://image.digitalinsightresearch.in/uploads/NewsArticle/20435670/main.gif

Dominic Dudley
Abu Dhabi mends fences with Riyadh
9 October 2026

Ongoing political turmoil in the region may be prompting Abu Dhabi to review its approach to key diplomatic issues, not least its relations with its larger neighbour, Saudi Arabia.

In late September, UAE Vice-President Sheikh Mansour Bin Zayed Al-Nahyan travelled to Riyadh for talks with Crown Prince Mohammed Bin Salman and Defence Minister Prince Khalid Bin Salman. Such visits may have been commonplace in the past, but over the past year they have been relatively rare, given the friction between the two Gulf powers over issues such as the conflict zones of Yemen and Sudan, relations with Israel and economic rivalry.

At the start of the year, the UAE retreated from Yemen under pressure from Riyadh, after the UAE-backed Southern Transitional Council made rapid territorial gains at the expense of Saudi-backed groups and advanced close to the kingdom’s southern border.

Since then, against the backdrop of the Iran war, relations have shown further signs of strain, with cross-border financial transactions reportedly being blocked or delayed.

However, there have been intermittent attempts to present a more collegial relationship, such as in July, when a photo emerged on social media of Sheikh Mansour and Prince Khalid posing with their arms around each other, reportedly while on holiday in Europe.

Yemen dynamics

Gains by another group in Yemen may lie behind the latest rapprochement between Riyadh and Abu Dhabi. The visit by Sheikh Mansour on 29 September came in the wake of significant advances by the Houthis, who had recently captured Mokha port and strategically significant areas of land overlooking the Bab El-Mandeb Strait – heightening their ability to menace passing ships.

Saudi Arabia has been leaning on its allies – particularly Pakistan and Turkiye – to support its campaign against the Houthis. It is unclear whether the UAE would be willing to get involved militarily in Yemen again, or whether Riyadh would be happy for it to do so, but it could still be a useful ally in the fight. Analysts have noted that UAE-backed forces have, over the years, had a far greater record than anyone else of scoring battleground victories against the Houthis.

It is also notable that Mansour’s delegation to Riyadh included several senior security officials, including Ali Bin Hammad Al-Shamsi, secretary general of the Supreme Council for National Security; Ali Saeed Matar Al-Neyadi, chairman of the National Emergency, Crisis and Disaster Management Authority; and Nasser Humaid Al-Nuaimi, secretary general of the Tawazun Council for Defence Enablement.

The visit was a surprise, given the GCC states’ lack of unified action this year amid the crises in Yemen and Iran. Speaking at an event in Washington in mid-September, Bernard Haykel, professor of Near Eastern Studies at Princeton University, noted that: “Despite the fact that [the GCC states] all face a common threat in Iran and its proxies, you still don’t see real coordination between them. You still have these differences between the Saudis and the UAE, for instance; you have differences between the Qataris and the UAE. If anything would have united them, this would be it. And you don’t see that kind of unity.”

Writing for the Arab Gulf States Institute in early October, Kristian Coates Ulrichsen, a Baker Institute fellow for the Middle East at Rice University, said Mansour’s visit to Riyadh in late September was “likely meant to signal that the thaw [in bilateral relations] was real” and “designed to enable a more coordinated approach to managing the forces ranged against the Houthis in southern and central Yemen”.

Further signs of warming ties came on 8 October, when UAE Investment Minister Mohamed Hassan Alsuwaidi signed a memorandum of understanding with Saudi Industry and Mineral Resources Minister Prince Abdulaziz Bin Salman covering power grid interconnections, trade in electricity and freight rail connectivity.

On the same day, the Saudi ambassador to the UAE invited President Sheikh Mohamed Bin Zayed Al-Nahyan to attend a GCC-EU Summit in Saudi Arabia later in the month.

Sheikh Mansour was not the only senior Emirati on diplomatic manoeuvres in recent weeks. The day after the vice-president was in Riyadh, national security adviser Sheikh Tahnoun Bin Zayed Al-Nahyan was in Muscat for talks with Sultan Haitham Bin Tariq Al-Said.

Oman is a critical partner for the UAE in several areas. Omani ports have provided a trade lifeline for Emirati importers and exporters at a time when ports in Dubai and Abu Dhabi have been sidelined by Iran’s threats against shipping through the Strait of Hormuz. Muscat’s approach of maintaining dialogue with all actors means it is also able to mediate with both Iran and Yemen’s Houthis.

Strategic independence

The flurry of diplomatic activity may be a sign of closer coordination between the UAE and its neighbours on some critical issues, but that does not necessarily herald a sea change in its approach.

Speaking at the UN General Assembly in New York on 28 September, Minister of State Khalifa Shaheen Al-Marar reviewed the crises in Iran, Sudan, Gaza, Ukraine and elsewhere and said “the importance of developing and reforming regional and international multilateral institutions … remains paramount” – but while he name-checked the UN, he did not mention the GCC.

It is also notable that the UAE has not yet joined either of the two security initiatives launched by Saudi Arabia during the summer: a maritime defence alliance designed to protect shipping in the Red Sea, or a mutual defence pact that Riyadh signed with Turkiye and Pakistan.

In his speech to the UN, Al-Marar listed what he saw as the main pillars of the UAE’s national strength: “strategic independence” was the first item in his list.

https://image.digitalinsightresearch.in/uploads/NewsArticle/20432716/main.gif

Dominic Dudley
Adnoc secures Thailand LNG supply deal
9 October 2026

Abu Dhabi National Oil Company (Adnoc) has secured a deal with Thailand-based energy and infrastructure company Gulf Group to supply 2 million tonnes a year of liquefied natural gas (LNG), with deliveries starting in 2027.

The multi-year sale and purchase agreement (SPA), whose exact duration Adnoc did not disclose, builds on an initial LNG supply deal agreed between the two companies last year. The transaction was arranged through Adnoc’s integrated LNG marketing and trading platform, which was established in July within Abu Dhabi Global Market.

The hub integrates the marketing operations of Adnoc subsidiaries Adnoc Gas and XRG with the trading activities of Adnoc Trading. It targets a combined portfolio of 47 million t/y of marketable LNG by 2035. Adnoc Trading has developed an active third-party trading portfolio over the past four years, operating from commercial offices in Abu Dhabi, Singapore and Geneva.

ALSO READ: Adnoc signs energy agreements with Japan and South Korea

Separately, Adnoc has secured offtake commitments covering approximately 90% of the 9.6 million-t/y capacity planned for its low-carbon Ruwais LNG project.

In July, Adnoc signed a 15-year SPA with Japan’s Inpex Corporation for the supply of up to 1 million t/y from Ruwais. That contract marked Adnoc’s third long-term Ruwais supply agreement with a Japanese buyer, following deals with Osaka Gas and Mitsui & Co in March and April 2025, respectively. Together, the agreements with the three Japanese firms account for 2.4 million t/y – one-quarter of the terminal’s total capacity, which will be delivered across two 4.8 million-t/y liquefaction trains.

Adnoc has also secured long-term Ruwais LNG supply agreements with Malaysia’s Petronas, Germany’s EnBW Energie Baden-Wurttemberg and SEFE (Securing Energy for Europe), China’s ENN Natural Gas, UK-based Shell and Indian Oil Corporation.

Currently under construction in Ruwais Industrial City, Abu Dhabi, the facility is scheduled to begin commercial operations in 2028. Its commissioning will more than double Adnoc’s LNG production capacity to approximately 15 million t/y.

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Indrajit Sen

Fibrex wins $217m Abu Dhabi Seamont residences contract

9 October 2026

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Abu Dhabi-based contractor Fibrex Construction Group has won an AED800m ($217m) contract to build the Seamont Autograph Collection Residences project, located on Al-Reem Island in the UAE capital.

Abu Dhabi-based real estate developer Royal Development Holding, a subsidiary of Emirates Stallion Group, and local firm Saas Properties awarded the contract.

The development comprises two 22-storey towers offering 497 residences, ranging from one- to four-bedroom apartments.

The construction programme is scheduled to run for 27 months, with completion due in December 2028.

Fibrex will begin mobilisation immediately, following the completion of enabling works this month, which were undertaken by Sharjah-based Swiss Pro Foundations.

Dubai-based architectural firm Dewan Architects & Engineers is the project consultant.

The contract marks another major win for the contractor. Last year, Dubai-based developer Nakheel awarded Fibrex a AED2.6bn ($708m) contract to build the Bay Villas project at Dubai Islands.

That contract includes the construction of 636 villas.

READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

> AGENDA: Oxagon takes centre stage at Neom

> MARKET FOCUS: Saudi projects hold steady

> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking

> POWER: AI is creating a grid capacity problem

> LEGAL: What IFAD’s wind-down means for Gulf commodity markets

> OIL: Oil companies focus on North Africa amid Hormuz crisis

> LEADERSHIP: The future city does not need to hang above the ground

To see previous issues of MEED Business Review, please click here

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Yasir Iqbal

Dubai picks contractor for Al-Maktoum airport terminal

9 October 2026

Dubai Aviation Engineering Projects (DAEP) has selected a contractor for an estimated AED10bn ($2.7bn) substructure package for the West Terminal, as part of the first phase of the $35bn expansion of Al-Maktoum International airport.

A joint venture of Beijing-headquartered China Civil Engineering Construction Corporation (CCECC) and Abu Dhabi-based Tristar Engineering & Construction will execute the contract.

According to a description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level facility spanning 800,000 square metres, with annual capacity for 45 million passengers.

The terminal will be the second of three planned terminals at Al-Maktoum International airport. It will connect to the airside via a 14-station automated people-mover (APM) system.

In July, MEED exclusively reported that DAEP had awarded an estimated $1.5bn contract to a joint venture of Japan’s Mitsubishi Corporation and Indian contractor Larsen & Toubro for the APM system.

The APM will run beneath the apron and terminal areas, using multiple tracks to transport passengers between terminals and concourses. Four underground stations are planned in the first phase, while the full airport development is expected to include 14 stations.

The latest awards form part of a wider programme of contracts recently signed by DAEP, covering enabling works, the second runway, initial structural foundations for passenger terminals and concourse substructures.

Upcoming awards

In June 2026, DAEP said it will award construction contracts worth over AED55bn ($15bn) for Al-Maktoum International airport by the end of the year.

At the time, DAEP said the planned awards included substructure works for the West Terminal, the fourth aircraft concourse and the baggage-handling system. The programme also included superstructure works for the West Terminal and the first, second and third aircraft concourses.

The packages are expected to include long-span structural frameworks for buildings covering about 1.5 million square metres, infrastructure works for the southern airfield area, and power-generation and district-cooling plants supporting the construction programme.

DAEP also plans to award façade and roofing packages in 2026.

The Dubai Government approved updated designs and timelines for its largest construction project in April 2024. In September 2024, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as lead masterplanning and design consultants for the Al-Maktoum International airport expansion.

Construction of the airport is planned in three phases. Once complete, the airport will cover 70 square kilometres south of Dubai and include five parallel runways and 430 aircraft gates.

It will be five times the size of Dubai International airport and is planned to have a passenger-handling capacity of 260 million passengers a year – the largest in the world. For cargo, it is planned to have the capacity to handle 12 million tonnes a year.