Pre-Construction Consultancy & Building Materials Supply for New Administrative Capital and New Alamein City Pipeline

Egypt has solidified its position as Africa's premier FDI destination in 2025, attracting an estimated $11 billion in inflows per UNCTAD, outpacing all other African economies despite a continent-wide slowdown. Net FDI surged to $9.3 billion in just the first half of FY2025/26, driven by Gulf, European, and Asian capital flowing into construction, green energy, and ICT. The government is executing an $8 billion IMF Extended Fund Facility (four reviews completed), has adopted a flexible exchange rate, and is targeting $12 billion in FDI by end-2025 through a GAFI-World Bank National FDI Strategy covering 2025–2030. Three structural catalysts are firing simultaneously: (1) a green hydrogen and renewable energy boom anchored by EU-backed projects at Ain Sokhna and a new $17 billion GAFI green hydrogen megaproject in South Sinai; (2) a digital payments and fintech acceleration illustrated by Fawry's $12 billion in FY2024 cashless transactions (+73% YoY); and (3) a $565.5 billion construction pipeline with 51% of projects still in the study/design phase, offering pre-construction and supply-chain entry points. Risks include residual EGP currency volatility, Red Sea disruption depressing Suez Canal revenues, elevated public debt, and geopolitical spillover from Gaza. The EU remains Egypt's largest trading partner (24.6% of total trade in 2025), making European-affiliated investors structurally well-positioned.

Egypt's construction pipeline stands at $565.5 billion in future projects, with 51% still in the study phase and 39% in the design phase as of H1 2025—representing the highest-margin, lowest-capex entry point before main contract awards. Residential prices rose 16.5% year-on-year in Q2 2025, and the Egyptian government has issued General Tenders for rehabilitation of 300 technical education schools and multiple public infrastructure substation upgrades, signalling a broad public procurement wave.

Market drivers:

- New Administrative Capital and New Alamein City mega-projects continue to attract Gulf and European capital, requiring European-standard architectural, structural, and MEP design consultancy that local firms cannot fully supply

- Egypt's construction market is the third-largest in MENA and projected to reach USD 20.4 billion by 2030 at a 6.1% CAGR, underpinned by population growth and rapid urbanisation

- PwC-reported 2025 amendments to Egypt's Customs Law (Decision 548/2025) expand AEO eligibility and extend warehousing periods, lowering logistics costs for imported building materials and prefabricated components

Risks:

- Government procurement rules require a minimum 40% Egyptian local content in project bids, limiting the margin available to foreign suppliers and consultants unless structured through a local JV

- Foreign equity in construction and transport services is capped at 49% under GATS commitments, requiring careful JV structuring and minority-position governance protections