Fitch International: Positive expectations for the urban development sector in Egypt until 2035

Urban development plays a pivotal role in promoting economic growth and raising the quality of life in various countries, as infrastructure and urban projects represent a major engine for providing job opportunities, stimulating investment, and developing cities and industrial areas. Urban development plans contribute to regulating population expansion and meeting the needs of growing communities, ensuring the sustainability of resources and achieving a balance between economic and social development.

In Egypt, ongoing urban expansion and construction programs are part of a comprehensive strategy aimed at developing infrastructure networks, enhancing the country’s economic capacity, and supporting major projects in the transportation, energy, and utilities sectors. These efforts allow enhancing private and public investment, and expanding the scope of urban development to include residential, commercial and industrial projects, thus contributing to achieving sustainable growth in the medium and long term.

This urban expansion reflects the state’s commitment to achieving the eleventh goal of the Sustainable Development Goals (SDGs), which is to build sustainable cities and communities, by providing advanced infrastructure and urban spaces that meet the needs of the population and achieve a balance between urban development and the environment.

Prospects of the construction sector in Egypt

In the context of following up on everything that is raised about the Egyptian issue or within the scope of its interest within international think tanks and research, international classification institutions, and various foreign news agencies, newspapers and periodicals around the world, the article highlights the report issued by Fitch Solutions International under the title “Prospects of the Construction Sector in Egypt.”

According to the report, the construction sector in Egypt witnessed a significant acceleration during the fiscal years 2025/2026 and 2026/2027, supported by strong activity in infrastructure projects. Especially in the energy, utilities and transportation sectors, noting that this activity reflects the country’s continued trend towards developing infrastructure networks and enhancing its economic capabilities through investment in strategic sectors.

The agency’s expectations indicated an acceleration of the real growth of the construction sector in Egypt during the coming years. It is expected to rise from 4.1% in the fiscal year 2024/2025 to 5.6% in the fiscal year 2026/2027, then to 6.6% in the fiscal year 2027/2028.

The report also indicated continued strong activity in the construction sector in Egypt, supported by extensive projects in the areas of urban and industrial development, including projects that contribute to expanding the scope of urban development and meeting the growing demand for residential, commercial and service spaces.

Transportation infrastructure

In the medium term, the construction sector in Egypt is expected to grow at an annual average of 6.3% during the period (2026-2035), as a result of the interaction of economic recovery factors with long-term structural factors, such as urban expansion and the increasing need for transportation, energy and infrastructure networks.

As for the expectations of the transport infrastructure sector, they remain positive, supported by continued investments in container terminals and port expansion projects on the Red and Mediterranean coasts of Bahrain. To enhance Egypt’s position as a regional center for transshipment and logistics services.

In the same context; Egypt continues the process of developing urban transport networks and linking cities through modern railway projects, including the high-speed railway network, which connects about 60 cities at speeds of up to 230 kilometers per hour with an extension of 2,000 kilometers, which enhances transport efficiency and reduces travel times between different regions.

Investing in transport infrastructure enhances the achievement of the ninth goal of the Sustainable Development Goals (SDGs) related to industry, innovation and infrastructure, by developing effective and sustainable transport networks that support the national economy and link cities and industrial regions together.

Expanding investment opportunities in the energy and utilities sector

The Information Center explained that the Fitch report indicated the expansion of investment opportunities in the energy and utilities sector; The expansion of non-hydroelectric renewable energy and the increase in private sector participation will contribute to supporting the state’s goal of having the share of renewable energy in electricity generation reach more than 60% by 2040, and this is likely to prompt the launch of new projects in wind energy, solar energy, and green hydrogen, in addition to enhancing investments in water infrastructure, including water desalination and treatment.

The report expected that declining inflation rates and rising private sector investments would contribute to supporting construction activity, and in the long term, demographic trends and government incentives to attract private investment, in addition to the large deficit in housing supply, will remain among the main drivers of construction activity.

The expansion of renewable energy also contributes to achieving the seventh goal of the Sustainable Development Goals (SDGs), by providing clean energy, and the thirteenth goal by supporting efforts to adapt to the effects of climate change and transition towards a low-carbon economy.

The report stressed at its conclusion that major urban development projects will remain among the main drivers of construction activity in Egypt in the long term, and it is expected that other urban initiatives will contribute to expanding the lines of residential, commercial and tourism projects, in a way that supports the continued growth of the construction sector in Egypt during the coming years.

In conclusion, Egypt is proceeding with the implementation of extensive urban development and infrastructure projects that are reshaping the map of urban development, supporting the economy’s ability to absorb population expansion and enhancing investment activity in the transportation, energy and utility sectors.

Estimates also indicate an upward trajectory for the urban development sector in the coming years, driven by growing investments in infrastructure and the continuation of major urban projects, which enhances opportunities for long-term economic growth and supports the shift towards more sustainable development patterns.The Earth Guards Foundationbelieves that the continuation of major urban projects and increasing private sector participation contribute to forming a supportive environment for long-term economic growth that keeps pace with urban transformations and sustainability requirements.