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

Exclusive from Meed

Saudi Arabia raises electricity tariffs
26 October 2026
Dubai Municipality confirms AED3bn Tasreef drainage awards
26 October 2026
Nakheel awards $259m Dubai Islands buildings contract
26 October 2026
Morocco plans second high-speed rail phase to Agadir
26 October 2026
Riyadh tenders King Salman Stadium works
26 October 2026

Saudi Arabia raises electricity tariffs
26 October 2026

Saudi Energy, formerly Saudi Electricity Company, has announced revised electricity tariffs, with the new rates scheduled to take effect on 1 January 2027.

The revised tariff schedule, published on the company’s official website, covers residential, commercial, industrial, agricultural, charitable and government customers.

The largest percentage increase in consumption rates is 16.7%, for residential customers using up to 6,000 kilowatt-hours (kWh) a month. Residential customers will pay 21 halalas/kWh for monthly consumption of up to 6,000kWh, up from 18 halalas. For consumption above 6,000kWh, the rate will rise from 30 to 33 halalas/kWh, a 10% increase.

The industrial tariff will increase by 15%, from 20 to 23 halalas/kWh. Commercial customers, private healthcare facilities and private educational facilities will pay 25 halalas/kWh (up from 22 halalas) for consumption up to 6,000kWh a month, and 35 halalas/kWh above that level, up from 32 halalas.

Tariffs for charities and government customers will also increase. In addition to charges based on electricity consumption, customers will pay a fixed monthly fee determined by the capacity of their electricity metre. This replaces the previous separate charge for meter reading, maintenance and billing, with VAT applied to the revised tariffs.

Electricity investment

The new tariffs coincide with changes to water consumption tariffs announced by the National Water Company, also effective from 1 January 2027.

King Salman Bin Abdulaziz Al-Saud directed support measures following a proposal presented by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

This includes raising the minimum wage required for Saudi nationals to count as full employees towards private sector localisation quotas under the Nitaqat programme.

The tariff changes come as Saudi Arabia plans substantial investment in its electricity infrastructure. In September 2025, Saudi Energy announced plans to invest SR220bn ($58.7bn) in power infrastructure projects between 2025 and 2030.

A June 2025 report by Fitch Ratings forecast negative free cash flow of about SR16bn a year over the period and rising leverage, reflecting the financial demands of the programme.

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Mark Dowdall
Dubai Municipality confirms AED3bn Tasreef drainage awards
26 October 2026

Dubai Municipality has confirmed it has awarded four contracts worth AED3bn ($817m) to expand the emirate’s stormwater drainage network by about 100 square kilometres under phase three of the Tasreef programme.

The projects will cover Jumeirah, Umm Suqeim, Al-Quoz, Al-Barsha, Al-Wasl and Al-Marmoom. The works include constructing and extending main stormwater drainage lines with diameters of up to three metres.

The four packages are part of Dubai’s AED30bn Tasreef programme, which aims to increase the emirate’s stormwater drainage capacity by 700% and reduce costs associated with pumping stations, network operations and maintenance by 20%.

The contracts have been awarded to China State Construction Engineering Corporation (CSCEC) and three local firms: Arifco Group, Nael Construction & Contracting (NCC) and Detech Contracting. Dubai Municipality did not state which projects the awards relate to.

According to sources, the contract awards include packages TF-15-C1, TF-15-C2 and TF-13-C1.

The first package, TF-15-C1, involves the construction of 21 kilometres of main and secondary drainage lines along Al-Wasl Road and in surrounding areas. It will cover Za’abeel 2, Al-Wasl, Jumeirah 1 and 2, Al-Bada’a, Al-Satwa and Dubai World Trade Centre. The estimated $100m contract was awarded to Detech in July, as exclusively reported by MEED.

The second package, TF-15-C2, covers the corridor between Sheikh Zayed Road and Al-Khail Road. It includes about 14km of main drainage lines serving Al-Quoz Industrial Areas 1, 3 and 4, and Al-Barsha 1. In July, MEED reported that CSCEC had won the engineering, procurement and construction contract for this project.

The third package, TF-13-C1, covers Al-Marmoom, where 23km of drainage infrastructure will be developed. According to a source, Arifco has been awarded this contract.

The final package covers Jumeirah and Umm Suqeim, where about 42km of main drainage lines will serve Umm Suqeim 1, 2 and 3; Umm Al-Sheif; Jumeirah 3; Al-Safa 1 and 2; and Al-Manara.

In May, MEED reported that NCC had been awarded a contract to build a sewage and stormwater drainage system, DS-204. However, it is unconfirmed whether this relates to the same project.

Earlier, in February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

These included two contracts awarded to Detech and one to CSCEC for stormwater drainage infrastructure. In addition, two consultancy contracts were awarded for the study and design of drainage systems in selected areas across the emirate.

Cumulatively valued at AED2.5bn, the new projects will serve 30 vital areas, spanning approximately 430 million square metres and supporting an estimated population of three million residents by 2040.

Previously, in April 2025, an earlier package of awards was announced under phase one of the Tasreef programme. The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033.

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Mark Dowdall
Nakheel awards $259m Dubai Islands buildings contract
26 October 2026

Dubai-based master developer Nakheel, part of Dubai Holding Real Estate, has awarded local firm Parkway International Contracting a construction contract valued at about AED950m ($259m) for phases two and four of Bay Grove Residences on Dubai Islands.

The package covers 617 residential units across eight buildings, ranging from one to four bedrooms, together with basement structures, infrastructure and community amenities including swimming pools, sports courts and fitness centres.

Phase two comprises 360 homes across four buildings, with main construction scheduled for completion in late 2028.

Phase four includes 257 homes across four buildings, with completion targeted for the second quarter of 2029.

The award follows an earlier contract valued at about AED800m ($218m) awarded to local contractor Metac General Contracting Company for phases one and three, covering 537 homes across seven buildings.

Together, the two contracts total more than AED1.75bn ($476m) and account for all 1,154 planned homes across the 15 buildings of Bay Grove Residences.

Project activity on Dubai Islands has gathered pace in recent months. Earlier this month, Nakheel awarded local firm Mar Marine & Building Contracting a contract for marine and coastal works on Island B. The scope includes constructing breakwaters, removing existing rock revetments and creating a new 320-metre beach near the Bay Villas development, as well as remedial and refurbishment works along approximately 3 kilometres of the island’s western shoreline.

In August 2025, Nakheel awarded Fibrex Contracting a AED2.6bn ($708m) construction contract for the Bay Villas residential project. That followed a AED527m ($143m) contract awarded to Al-Nasr Contracting Company in April 2026 for primary infrastructure and utilities on Island B.

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Yasir Iqbal
Morocco plans second high-speed rail phase to Agadir
26 October 2026

Morocco has outlined a second rail investment cycle for 2030-35, which includes beginning construction of a high-speed rail extension from Marrakech to Agadir and connecting Essaouira to the national rail network.

The pipeline forms part of the government’s 2026-31 programme, presented to parliament last week.

The Marrakech-Agadir link is estimated to cost close to MD55bn ($5.5bn) and will cover a 240-kilometre (km) route through the High Atlas Mountains via Chichaoua. Civil engineering structures, including tunnels and viaducts, are expected to account for nearly 70% of the alignment.

In September, the government issued a decree declaring the Marrakech-Agadir and Chichaoua-Essaouira rail corridors to be of public utility, paving the way for land acquisition and expropriation procedures.

Under the long-term masterplan Plan Rail Maroc 2040, Essaouira is expected to connect to the network via a separate line branching off at Chichaoua, designed for operating speeds of up to 200km an hour. The mainline to Agadir is designed for speeds of up to 320km/h.

The 2030-35 cycle also includes rehabilitating the Casablanca-Khouribga-Oued Zem line; constructing a new line between Oued Zem and Beni Mellal via Bejaad, with a branch to Fquih Ben Salah; doubling and upgrading the 140km Benguerir-Safi line; expanding capacity on the Fez-Oujda corridor; and building new-generation passenger stations.

The plans follow Morocco’s ongoing MD134bn ($13.4bn) 2024-30 rail investment programme, which focuses on completing the Kenitra-Marrakech high-speed line ahead of the 2030 Fifa World Cup.

The programme also includes developing regional express network services across five regions, electrifying the Fez-Oujda line and completing a freight rail link to the Nador West Med port.

Work on the Kenitra-Marrakech line had reached about 30% by May 2026, with commercial services targeted to begin in September 2029.

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Yasir Iqbal

Riyadh tenders King Salman Stadium works

26 October 2026

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Saudi Arabia’s Sports Ministry has tendered a contract covering early works at King Salman International Stadium in Riyadh.

The scope includes enabling works, site preparation and initial construction activities.

The tender was issued on 11 October, with a submission deadline of 19 November.

The stadium will cover about 660,000 square metres (sq m) and seat 92,000. Facilities will include a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

The wider development will include sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

The stadium is set to host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main base.

US-based architectural firm Populous is the lead architect for the stadium.

Construction of the stadium is expected to be completed by 2029.

The stadium will be located next to King Abdulaziz Park.

Firms submitted prequalification statements for the main design-and-build contract in February.

Saudi stadium plans

In August 2024, MEED reported that Saudi Arabia planned to build 11 new stadiums and refurbish four facilities for the 2034 Fifa World Cup.

Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

A further 10 cities will host training bases: Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

There are expected to be 134 training sites in the kingdom, including 61 existing facilities and 73 new venues.

Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

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