Egypt’s construction and building sector remains a key driver of economic growth, reflecting its strong linkages with multiple productive activities. In FY 2024/2025, the sector ranked among the top ten contributors to gross domestic product (GDP) growth, accounting for 0.33 percentage points of the overall 4.4% growth rate, underscoring its role in supporting economic expansion and employment generation.

This factsheet provides an in-depth assessment of the sector’s economic significance, examining its contribution to growth and its interconnections with other sectors, while also presenting an outlook on expected performance trends over the coming years.

• The construction and building sector’s GDP reached EGP 1.8 trillion in FY2024/2025, accounting for 10.3% of the country’s GDP. During the same period, the construction sector grew by 4.1%. The government further targets a growth rate of 4.3% in the current fiscal year.
• Egypt’s construction sector is expected to strengthen over the coming fiscal years, driven by continued investment in large-scale infrastructure projects across the energy, utilities, and transport sectors. This reflects a sustained policy focus on expanding infrastructure capacity and improving economic efficiency through public and private investment, supporting service delivery, strengthening sectoral linkages, and reinforcing the sector’s role in medium-term economic growth.
• Real growth in the construction sector is anticipated by Fitch Solutions to increase steadily, rising to 5.6% in FY2026/2027 and reaching 6.6% by FY2027/2028, with an average growth rate of 6.3% projected between 2026 and 2035. This expansion is expected to be underpinned by continued progress in major urban development initiatives, including the New Capital and key coastal projects such as Ras El-Hekma and Alam El-Roum, in addition to other residential, commercial, and tourism developments that will contribute to sustaining demand for construction activities over the long term.
• According to recent data published by the Central Agency for Public Mobilization and Statistics (CAPMAS), the average daily wage rate in construction and building activities recorded EGP 267 at the end of 2025. The sector employs around 10.65% of the total employed population in Egypt. Due to the nature of the sector, the employment rate is higher among males as 13.3% of employed males work in the sector, while the percentage is 0.42% among females.
• Public investments implemented in the construction sector during FY2024/2025 hit EGP 38.8 billion, representing a remarkable year-on-year increase of 82%. The construction sector’s investments represented 4.2% of total public investments.
• The construction sector is one of the sectors attracting foreign direct investment (FDI). In FY 2024/2025, FDI inflows into the sector amounted to $979 million, representing 4.1% of total FDI inflows to Egypt.

By: Amina Hussein