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
Exclusive from Meed
-
Saudi Arabia seeks firms for six renewable projects
17 September 2025
-
Qatar tenders Smaisma infrastructure contract
17 September 2025
-
Dragon Oil to boost exploration and production in Egypt
17 September 2025
-
Construction launched for final major projects of Iraq’s GGIP
17 September 2025
-
Saudi drilling firm raises acquisition offer for Dubai rival
16 September 2025
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 six renewable projects
17 September 2025
Register for MEED’s 14-day trial access
Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), has invited interested companies to prequalify for the contracts to develop and operate solar photovoltaic (PV) and wind independent power producer (IPP) projects with a total combined capacity of 5,300MW.
The following schemes comprise round seven of the kingdom's National Renewable Energy Programme (NREP):
- 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf Province)
- 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail Province)
- 600MW Tathleeth solar PV IPP (Tathleeth, Aseer Province)
- 500MW South Al-Ula solar PV IPP (Al-Ula, Medina Province)
- 1,300MW Bilgah wind IPP (Bilgah, Medina Province)
- 900MW Shagran wind IPP (Shagran, Medina Province)
These projects are part of the NREP, which aims to achieve an optimal energy mix and supply 50% of the kingdom's electricity from renewable energy by 2030.
Earlier rounds under the NREP have already put in place large capacities.
Round six solicited around 4,500MW of solar and wind projects:
- 1,500MW Dawadmi wind IPP (Riyadh)
- 1,400MW Najran solar PV IPP (Najran)
- 600MW Samtah solar PV IPP (Jizan)
- 600MW Al-Darb solar PV IPP (Jizan)
- 400MW Al-Sufun solar PV IPP (Hail)
In April, MEED reported that prequalified developers were forming teams to bid for the contracts to develop solar farms under the sixth round of the NREP.
A separate set of bidders were prequalified for the 1,500MW Dawadmi wind farm, with contracts due to be awarded before the end of the year.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14684103/main3708.jpg -
Qatar tenders Smaisma infrastructure contract
17 September 2025
Register for MEED’s 14-day trial access
Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting construction firms to bid for the remaining works on roads and infrastructure in the small seaside town of Smaisma.
The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.
The scope of work includes the completion of the remaining works and remedial works on three zones. Each zone is further divided into three sub-zones.
The scope also covers the remaining works on road C1017.
The contract duration is two years from the start of construction works.
The tender was floated on 15 September with a bid submission date of 28 October.
The latest notice follows the tendering for the construction of roads and infrastructure in Wadi Al-Banat North (Zone 70).
Market overview
After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.
In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.
Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.
There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14682452/main.jpg -
Dragon Oil to boost exploration and production in Egypt
17 September 2025
Register for MEED’s 14-day trial access
Dubai-based Dragon Oil has signed a deal with the state-owned national oil company Egyptian General Petroleum Corporation (EGPC), agreeing to increase exploration and production activities in the Gulf of Suez.
Under the terms of the agreement, Dragon Oil will make investments worth about $30m.
This will fund activities including a programme to drill at least two new wells in the East El-Hamd area.
Abdulkarim Ahmed Al-Mazmi, the acting chief executive of Dragon Oil, said: “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability.”
Dragon Oil is wholly owned by Emirates National Oil Company, which is fully owned by the Government of Dubai.
Al-Mamzi said that the new investments are part of Dragon Oil’s broader strategy to expand in regional markets and to strengthen its position in the oil and gas sector, in line with the directions of the government of the UAE, and in particular the Government of Dubai.
The agreement was signed at the EGPC headquarters in Cairo.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14680456/main.png -
Construction launched for final major projects of Iraq’s GGIP
17 September 2025
Register for MEED’s 14-day trial access
Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.
The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).
The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.
Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.
An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.
In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”
The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.
Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.
The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.
The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.
The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.
In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.
The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.
An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.
Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.
“In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.
“All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.
“Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”
Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14680455/main.png -
Saudi drilling firm raises acquisition offer for Dubai rival
16 September 2025
Register for MEED’s 14-day trial access
Saudi Arabia-based ADES International Holding has increased its offer to buy Dubai-based, Oslo-listed rival Shelf Drilling to 18.50 Norwegian Krone ($1.88) per share, representing a 6% increase in the acquisition’s enterprise value.
The offer was revised from an earlier deal of $1.42 per share or a total of $379.33m.
ADES International Holding, a subsidiary of ADES Holding Company, signed a transaction agreement to acquire all issued and outstanding shares of Shelf Drilling through a cash merger, with ADES International Cayman (BidCo) also participating in the proposed merger.
According to a joint statement, irrevocable commitments have now been provided by additional shareholders, including China Merchants, Anchorage Capital Group and Magallanes Value Investors, which, combined with ADES’ 17.9% stake in Shelf Drilling, represent 53.4% of the outstanding shares in the company.
ADES International Holding raised its offer for Shelf Drilling after reassessing the company’s current market performance and revising its estimated annual cost synergies upwards by $10m, bringing the total to $50m-$60m.
All other terms of the merger remain unchanged, along with the transaction timetable, with closing expected to occur in the last quarter of the year.
Shelf Drilling is incorporated under the laws of the Cayman Islands, with its corporate headquarters in Dubai.
In April this year, ADES International Holding secured a 10-year extension for one of its standard offshore jack-up rigs from Saudi Aramco, valued at approximately $290m.
The contract for the offshore jack-up marks the re-entry of ADES International Holding into the Saudi offshore oil and gas market. The rig was among six jack-ups whose charters were suspended by Aramco last April.
ADES International Holding has secured deployments for three of those jack-ups in Qatar, Thailand and Egypt, while the fourth was recently redeployed to Thailand.
ADES International Holding also said it has increased its footprint since the start of 2025 by securing an offshore drilling job off the coast of Nigeria, marking its entry into West Africa.
https://image.digitalinsightresearch.in/uploads/NewsArticle/14676037/main0952.jpg