HELD UNDER THE PATRONAGE OF HIS EXCELLENCY DR. MOUSTAFA MADBOULY, PRIME MINISTER OF THE ARAB REPUBLIC OF EGYPT
www.thebig5constructegypt.com
EGYPT PROJECT MARKET OUTLOOK: 2021 IN PARTNERSHIP WITH MEED PROJECTS Projects Market Overview 2
With the only country in the whole MENA region whose economic growth is projected to be positive despite the Covid-19 impact in 2020 and a pipeline of more than $350bn of projects, Egypt’s projects market is well set to grow strongly over the coming years. In addition, the country’s economic robustness stems from its introduction of the most significant stimulus package outside of the GCC, relatively sustained project activity across sectors.
Historical Current Outlook
Egypt was the third largest projects market in the MENA There are currently about $435.9bn worth of The pipeline of known planned and un-awarded projects planned or under way in Egypt, making projects in Egypt is $354.8bn making it the third region, with about $14.9bn worth of contract awards in it the third largest in the MENA region biggest market in the MENA region 2020 The largest current sector in terms of work Of this total, $166.2bn is in construction, Between 2016 and 2020, a total of $91.2bn contracts under execution is construction with $35.1bn $64.3bn in transport and $59.1bn in oil and gas were awarded, with an annual average of $18.4bn worth of work underway, followed by transport The pipeline consists of $14.2bn projects in at $17.8bn The largest single sector has historically been construction bidding, $209.5bn in design or FEED, and followed by power and transport The largest single client is Egypt Ministry of $131.1bn under study Housing Utilities & Urban Communities with Project activity has been a bright spot for the The market hit its peak in 2018 with $26.2bn worth of $48bn worth of projects currently under Egyptian economy in recent years and spending contracts awarded construction is expected to continue with foreign funding in Though the impact of Covid-19 pandemic and low oil At $5.7bn of contracts under execution, China the future. Also, with strong demographic and prices resulted in a 2.3 per cent decline in 2020 but on the State Construction & Engineering Corporation is economic growth combined with being as a net the biggest contractor in terms of contracts in gas exporter, the outlook for the Egyptian whole, the projects market maintained the momentum hand projects market is rosy. Projects Market Size 3
As of the end of 2020, the Gulf Projects Index total value of projects in Egypt stood at about $468bn compared with a low of $153.2bn recorded in 2012 and a high of about $467.8bn in 2020
Fig. 5: Gulf Projects Index Value of all projects in Egypt ($m) 500,000
400,000
300,000
200,000
100,000
0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: MEED Gulf Projects Index Egypt Projects Market by Project Status 4
About $81bn, about 18.6 per cent, of projects planned or underway in Egypt are in execution. More than $200bn of projects are under design and about $14.1bn are in different stages of bidding
Fig. 6: Projects market by project status ($m) 240,000
203,420 200,000
160,000
131,138 120,000
81,098 80,000
40,000
6,064 14,191 0 Study Design FEED In Bidding Execution
Source: MEED Projects, 2021 Projects Market By Sector 5
The construction, transport and power sectors are far larger than other sectors in Egypt. They together account for more than 78 per cent of projects market. Though the total value of active oil and gas projects declined by nearly 18 per cent between the end of 2019 and 2020, the value of active chemicals projects on the other side has more than doubled in the last three years, as the volume of natural gas produced by the country has increased and policymakers have encouraged growth in the sector
Fig. 7: Projects market by sector ($m) 240,000
201,445 200,000
160,000
120,000
82,221 80,000 59,733 38,652 40,000 25,205 14,069 9,775 4,811 0 Chemical Construction Gas Industrial Oil Power Transport Water
Source: MEED Projects, 2021 Egypt Project Contract Awards By Year, 2010-20 ($m) 6
Despite the Covid-19 impact, Egypt fared relatively better than many other countries in the MENA region with nearly $15bn worth of contract awards being awarded in 2020. Contract awards in 2020 were down by just 2.3 per cent which was the lowest decline year-on-year in the last decade despite the country being hit by Covid-19 crisis. In contrast, contract awards in 2019 were down by nearly 42 per cent over 2018 which recorded the highest in the last decade due to the award of big projects such as Oil Refining and Petrochemical Complex in Suez Canal Economic Zone, 2400MW Hydropower Power Plant in Attaqa and Alexandria Refinery Expansion 2 project. Fig. 8: Value of contract awards by year ($m) 30,000
25,000
20,000
15,000
10,000
5,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: MEED Projects, 2021 Egypt Contract Awards by Sector, 2010-20 ($m) 7
Construction and power tend to vie for the position of most active sectors each year. These two sectors along with transport accounted for nearly 75 per cent of the contract awards in 2020. The most notable contracts that were awarded in 2020 were the Assuit Oil Refinery Upgrade: Hydrocracking Complex, Luxor IPP and Cairo Metro Network Line 4 Phase 1 Civil Package 1 (CP 401) project.
Fig. 9: Value of contract awards by year and sector ($m) 30,000
25,000
20,000
15,000
10,000
5,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Chemical Construction Gas Industrial Oil Power Transport Water
Source: MEED Projects, 2021 Egypt project contract awards, July-December 2010-2020 8
The value of project contract awards in Egypt decreased by nearly 16 per cent in the last six months of 2020 compared to the same period in 2019. Although the second half of 2020 contracts awards value declined more than the first half in percentage terms, the value of the projects market on the whole in real terms is far better than many other countries in the MENA region considering the Covid-19 impact and low oil prices
Fig. 10: Value of contracts awarded in Egypt in July to December, 2010-20 ($m)
14,000
12,000
10,000 15.9%
8,000
6,000
4,000
2,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: MEED Projects, 2021 Egypt Project Contract Awards By Number, 2010-20 ($m) 9
Construction has seen the most number of contracts awarded between 2010-20 and also has the highest average annual total value
Average Annual Fig. 11: Contract Count Total ($m)
Water 69 415
Transport 146 2,050
Power 222 3,009
Oil 21 1,197
Industrial 55 707
Gas 46 1,088
Construction 625 4,819
Chemical 32 1,366
Source: MEED Projects, 2021 Biggest Clients 10
As the client on the multi-billon dollar One Million Homes in Egypt project, Egypt Ministry of Housing Utilities & Urban Communities, is the largest client by value of work under execution at more than $48bn. It is followed by the Rosatom State Corporation Engineering Division and Palm Hills Developments
Fig. 12: Biggest clients in Egypt by value of contracts in execution ($m)
Egypt Ministry of Housing Utilities & Urban Communities Rosatom State Corporation Engineering Division Palm Hills Developments Administrative Capital for Urban Development National Authority for Tunnels (NAT) New Urban Communities Authority Petro Shorouk El Mostakbal Urban Development Egypt Ministry of Petroleum Egypt Ministry of Transport Emaar Misr Tatweer Misr Suez Canal Authority Mountain View Ministry of Electricity and Energy, Egypt Egyptian Electricity Transmission Company Sixth of October Development & Investment Co. (SODIC) Capital Group Properties Al Futtaim Group Landmark Sabbour 0 10,000 20,000 30,000 40,000 50,000
Source: MEED Projects, 2021 Biggest Contractors 11
China-based China State Construction & Engineering Corporation, is first ranked with more $5.5bn worth of contracts in hand
Fig. 13: Biggest contractors in Egypt by contracts in execution ($m)
China State Construction & Engineering Corporation Orascom Construction Petrojet The Arab Contractors Sinohydro Hassan Allam Construction Concord for Engineering & Contracting Enppi SEPCOIII Electric Power Construction Corp Al Marasem International For Development Technip Redcon Construction SIAC Construction Construction & ReConstruction Engineering China Railway Group Limited AVIC International Bombardier Gama Construction Company Elsewedy Maire Tecnimont 0 1,000 2,000 3,000 4,000 5,000 6,000
Source: MEED Projects, 2021 Top Projects 12
Below is a list of the current largest projects under construction in Egypt
Table 1: Biggest projects under construction in Egypt
Project name Project owner Budget ($m) Completion Suez Oil Refining and Petrochemical Complex Egypt Ministry of Petroleum 4,880 2025 The Capital Cairo: Central Business District Administrative Capital for Urban Development (ACCUD) 3,210 2024 2400MW Hydropower Power Plant in Attaqa Egypt Ministry of Electricity & Energy 2,080 2022 Bloomfields Mixed-Use Development in El Mostakbal City Tatweer Misr 2,014 2024 Assuit Oil Refinery Upgrade: Hydrocracking Complex Egypt’s Assiut Oil Refining Company 2,000 2023 Ain Sokhna Petro-Refinery Ain Sokhna Refinery & Petrochemicals Company 1,990 2022 Luxor IPP Acwa Power 1,760 2024 Alexandria Refinery Expansion 2 Middle East Oil Refinery 1,700 2022 Cairo Metro Network: Line 4: Phase 1: Civil Package 1 (CP 401) National Authority for Tunnels 1,594 2026 Cairo Metro Network: Line 3 National Authority for Tunnels 1,441 2025 JANNA Housing Development Egypt Ministry of Housing Utilities & Urban Communities 1,420 2026 Greater Cairo Monorail: Phase 2 National Authority for Tunnels 1,360 2023 10th of Ramadan LRT Phase 1 National Authority for Tunnels 1,320 2021 Cairo Metro Network: Line 3: Phase 3 National Authority for Tunnels 1,060 2026 Greater Cairo Monorail: Phase 1 National Authority for Tunnels 1,040 2022 Cairo Metro Network: Line 3 - Phase 3: El-Thawra Line Civil Work National Authority for Tunnels 990 2022 El Mostakbal City HAPTown Residential Development Hassan Allam Holding 900 2024 PAPP: Main Site Establishment and Inside Battery Limits: Package 1 & 2 Abu Tartour for Phosphoric Acid 842 2022 Cairo Metro Network: Line 4: Phase 1: Critical Systems Package (CP 411) National Authority for Tunnels 800 2025 The Grand Egyptian Museum: Phase 3 Ministry of State for Antiquities 800 2021
Source: MEED Projects, 2021 Future Pipeline 13
There are about $355bn worth of planned and un-awarded projects in Egypt, with projects in design being the biggest segment, followed by those in study. Both these stages constitute for more 90 per cent of the planned projects
Fig. 14: Projects planned but unawarded by status ($m) Main Contract PQ, 1,050 FEED, 6,064 Main Contract Bid, 365
Bid Evaluation, 12,776
Study, 131,138
Design, 203,420
Source: MEED Projects, 2021 Future Pipeline by Sector 14
Of these, construction, transport and power are the three single largest sectors in the pipeline. Multi-billon dollar projects such as the Ministry of Housing’s One Million Homes, AtomStroyExport’s El Dabaa Nuclear Power Plant, Administrative Capital for Urban Development’s Entertainment District and the planned construction of Trans-African Highway connecting Cairo to Cape Town project takes the centre stage of Egypt’s project pipeline
Fig. 15: Projects planned but unawarded by sector ($m)
180,000 166,282
150,000
120,000
90,000
64,342 60,000 50,399
31,127 24,223 30,000 12,359 3,845 2,236 0 Chemical Construction Gas Industrial Oil Power Transport Water
Source: MEED Projects, 2021 Top Future Projects 15
Below is the list of the largest planned and un-awarded projects in Egypt
Table 2: Biggest planned and un-awarded projects in Egypt Project name Project owner Budget ($m) Completion One Million Homes in Egypt Egypt Ministry of Housing Utilities & Urban Communities 32,001 2030 El Dabaa Nuclear Power Plant 4800MW AtomStroyExport 29,418 2028 Entertainment District in Egypt Administrative Capital for Urban Development (ACCUD) 20,000 2029 United Nations Economic Commission for Africa/The African Trans-African Highway: Cairo to Cape Town 15,100 2030 Union Commission The Capital Cairo Administrative Capital for Urban Development (ACCUD) 11,280 2030 Salamat Field Egypt Ministry of Petroleum 10,200 2026 Ain Sokhna to Al Alamein High-Speed Railway (East with Northwest) Egypt Ministry of Transport 9,000 2030 Al Habtoor City Mixed-Use Development Al Habtoor Group 8,500 2028 Alamein Petrochemical Complex Egyptian Petrochemicals Holding Company 8,500 2024 Zohr Gas Field Development Project PETROBEL 7,547 2021 Crude Oil Refining and Petrochemical Complex in Suez Egyptian Petrochemicals Holding Company 7,500 2025 New Garden City Egypt Ministry of Housing Utilities & Urban Communities 5,028 2026 Cairo Metro Network: Line 6 National Authority for Tunnels 5,000 2029 Future City El Mostakbal Company for Urban Development 4,900 2030 Ain Sokhna Economic Zone Development DP World/SCZone 4,800 2028 Luxor-Hurghada Railway Line Egypt Ministry of Transport 4,730 2028 West Port Said Port to Abu Qir Port Railway Line National Authority for Tunnels 4,700 2025 King Salman Causeway (Tiran Causeway) Saudi Arabia Ministry of Transport/Egypt Ministry of Transport 4,000 2028 New Al Alamein City Egypt Ministry of Housing Utilities & Urban Communities 3,976 2025 Cairo Metro Network: Line 5 National Authority for Tunnels 3,500 2028
Source: MEED Projects, 2021 Biggest Future Clients 16
Egypt Ministry of Transport is the largest client by value of work planned thanks to its multi-billion Ain Sokhna to Al Alamein High-Speed Railway (East with Northwest), Luxor-Hurghada Railway Line and Alexandria: Max New Port projects. It is closely followed by the Administrative Capital for Urban Development Fig. 16: Biggest future clients in Egypt by value of contracts planned ($m)
Egypt Ministry of Transport Administrative Capital for Urban Development Egyptian Petrochemicals Holding Company National Authority for Tunnels (NAT) Egypt Ministry of Petroleum Palm Hills Developments Al Habtoor Group New Urban Communities Authority Pharaonic Petroleum Company Al-Wadi for Phosphate and Fertilizer Industries Egyptian Electricity Transmission Company Arabia Holding Egypt Ministry of Investment and International Cooperation Egypt Ministry of Housing Utilities & Urban Communities Alliance Global Suez Canal Economic Zone Egyptian Electricity Holding Company Sidi Krier Petrochemicals Company (Sidpec) Egypt Ministry of Defense DP World 0 5,000 10,000 15,000 20,000 25,000
Source: MEED Projects, 2021 www.thebig5constructegypt.com
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