ANALYSIS OF EGYPT'S CONSTRUCTION PROJECTS MARKET Organized by - PowerPoint PPT Presentation

2 - 4 SEPTEMBER 2019 EGYPT INTERNATIONAL EXHIBITION CENTER www.thebig5constructegypt.com ANALYSIS OF EGYPT'S CONSTRUCTION PROJECTS MARKET Organized by

2015 2016 more than $33bn of contract awards . region as a whole, recording in 2018 largest single projects market in the overtaken Saudi Arabia as the second grown in the past two years, and it has where overall spending on projects has Middle East & North Africa (MENA) Egypt is in fact the only country in the incentives to stimulate the market. population growth, and government for new housing to back substantial from an improved economy, high demand The Egyptian real estate market benefjts scale of opportunity. developments demonstrating vividly the advertise dozens of new real estate 30,000 2017 2018 0 10,000 20,000 Value of contracts awarded in Egypt Everywhere across Cairo, huge billboards all sectors, 2015-18 ($m) Egypt is in the midst of a construction boom. In total, more than $20bn worth of real estate and civil infrastructure projects valued $50m or above have been awarded over the past two years alone. MARKET SIZE

population density rate of 46,000 per square kilometre in sustainable construction boom for years, if not decades, The market has benefjted from strong economic growth Current account balance (% of GDP) to come. Offjcial reserves ($bn) Nominal GDP ($bn), 2017 CPI infmation (%) Unemployment rate (% of labour force) of more than 5% in 2018, and a construction-focused is below the age of 25, are the perfect ingredients for a The drivers for this construction renaissance are clear. With the Arab world’s largest population of around 100 million people, Egypt already has a considerable latent demand for housing and social infrastructure. But population growth of more than 1 million each year, a Government debt (% of GDP) Fiscal balance (% of GDP) Cairo, and the fact that more than 50% of the population government which is prioritising the delivery of projects. Real GDP growth, 2017e (%) Real GDP growth, 2018f (%) state’s projects drive. Non-oil real GDP growth, 2018f (%) helped underpin this economic recovery and support the Oil real GDP growth, 2018f (%) tracked development of the offshore Zohr gas fjeld, has Crude oil production (million b/d) four years ago to net exporter today, thanks to the fast- Natural gas production (billion cf/d) Egypt’s rapid repositioning from a net gas importer Fiscal breakeven oil price ($/barrel) EGYPT ECONOMIC INDICATORS, 2018 KEY 299 DRIVERS 4.2 5.2 4.2 22.8 0.6 5.1 55.0 -10.0 91.2 -4.4 35.5 10.4 11.1

The key and perhaps best-known active construction project in Egypt Almarasem Development - Fifth Square NAT - Cairo Metro Network: Line 4: Phase 1: Civil Package 1 (CP 401) is the new Administrative Capital to the east of Cairo. Involving the El Mostakbal City HAPTown Residential Complex MHUUD - Rod El Farag Highway Madaar Development - Azha Ain El-Sokhna (Phase I) SCZONE - Al Sokhna Port Second Basin Development El-Thawra Line Civil Work NAT - Cairo Metro Network : Line 3 - Phase 4: Package 4B NAT - Cairo Metro Network: Line 3 - Phase 3: Electromechanical Works Palm Hills / Madinet Nasr : Capital Garden MAF - Almaza City Centre Egypt National Cancer Institute - National Cancer Institute NAT - Light Rail Transit : LRT Line (66 kms) Hassan Allam Properties - NAT - Cairo Metro Network: Line 3 - Phase 3: ACCUD - The Capital Cairo: Central Business District creation of a totally new from the ground-up city, the multi-billion- dollar project will host the government when it is complete as well as tens of thousands of new residents. Work on the massive project is well under way, with hundreds of individual contracts already awarded. Other signifjcant active real estate and civil infrastructure contracts include the huge new New Alamein City on the North Coast, the developments, and the expansion of the existing Cairo metro network. new Egyptian Grand Museum, a host of new hotel and tourism NUCA - The New Mansoura City PROJECT VALUE ($M) 2018 3,000 SELECTED ACCUD - The Capital Cairo: Central Business District Phase 2 2,800 1,350 EGYPT 1,244 1,240 CONTRACT 950 AWARDS 800 790 750 745 600 535 530 500 450 400

In terms of the leading clients, the Egypt has considerable long-term 8,000 6,000 4,000 2,000 0 rankings highlight that the market Egypt selected top construction and infrastructure potential. clients by value of work under execution ($m) GCC market slows and because Emaar and Al-Futtaim, as the is comprised of both government and private sector developers, unlike other markets where state bodies dominate. The local projects market has 10,000 Gulf real estate developers, like become increasingly attractive to TOP CLIENTS SUEZ CANAL AUTHORITY EGYPT MINISTRY OF HOUSING UTILITIES & URBAN COMMUNITIES EL MOSTAKBAL URBAN DEVELOPMENT EMAAR MISR EGYPT MINISTRY OF TRANSPORT CITYSTARS AL FUTTAIM GROUP CAPITAL GROUP PROPERTIES

It is a similar story among the leading 0 Egypt selected top construction and infrastructure 6,000 contractors. Both local and international 4,000 3,000 2,000 1,000 5,000 contractors by value of work under execution ($m) successful in the market. fjnancing have in particular been contractors which have been able to bring the openness of the local market. Chinese the opportunity which again demonstrates fjrms have been able to take advantage of TOP CONTRACTORS CHINA STATE CONSTRUCTION & ENGINEERING CORPORATION ORASCOM CONSTRUCTION HASSAN ALLAM CONSTRUCTION THE ARAB CONTRACTORS PETROJET CONCORD FOR ENGINEERING & CONTRACTING SIAC CONSTRUCTION UI NASR HOUSING & DEVELOPMENT

With a pipeline of known and un- Chemical 100,000 80,000 60,000 40,000 20,000 0 Transport Oil Gas Construction awarded projects worth more than contracts by sector ($m) Value of Egypt planned and un-awarded planned projects and growing. with more than $120bn worth of largest future market in the country and the UAE. Construction is by far the regional market after Saudi Arabia $300bn , Egypt is larger than any other 120,000 FUTURE PIPELINE

There are hundreds of future MoHUUD – Egypt’s Social Housing Program NUCA - 6th October City Residential Community Egypt MOT - Alexandria: Max New Port NAT - Cairo Metro Network: Line 5 Mixed Use Project in Cairo NAT - Cairo Metro Network: Line 6 King Salman Causeway (Tiran Causeway) Saudi MOT / Egypt MOT JV - MOT - Luxor-Hurghada Railway Line Cairo to Luxor construction and civil infrastructure Al Habtoor Group - Al Habtoor City in Cairo Palm Hills Developments - 6 October City: Badya MFTI - Golden Triangle Mining and Urban Development the Egyptian market. contracts across Egypt ranging from large-scale real estate and tourism projects to high speed railway and metro schemes. In all, there has never been a better time to invest in PROJECT VALUE ($M) FUTURE 29,000 SELECTED 16,600 EGYPT 8,500 8,494 PROJECTS MOT - Alexandria-Aswan High Speed Railway Line: 6,335 4,730 4,000 4,000 Heliopolis For Housing & Development / SODIC - 3,800 3,500 3,378 3,000

Atraba Integrated Holding – DPA - Second Container Terminal (DEPCO) Program at Matrouh MoHUD – Alamein City Hotels Development NUCA / Mountain View / Sisban Holding JV - Mountain View I-City 6th October Jumeirah Real Estate / Sakan Developments JV - Jumeirah Bay Ras El Hekma MoH - JANNA Housing Project Egypt Integrated Medical City Project in Cairo PROJECT VALUE ($M) FUTURE 2,000 SELECTED 1,680 EGYPT 1,500 PROJECTS 1,000 1,000 (CONTINUED) 1,000

SOME ACTIVE PROJECTS

New Grand Egyptian Museum Scope: One of the largest museum development projects in the world. Land area is 470,974 square meters divided into main museum and conference center building with area of 133,282 square meters. Developer: Ministry of Culture Stage: Nearing completion Estimated value: $810 million 1

New El-Alamein city Scope: A new mixed-use integrated city to accommodate more than 3 million people in phase 1. The development calls for construction of 20,000 residential units and 25,000 hotel rooms in the first phase alone. Developer: Ministry of Housing Stage: Construction Estimated value: $5 billion 2

New administrative capital Scope: New administrative capital of Egypt. 725 square km of land 21 residential areas 650 km of roads Capacity for 6.5 million people Developer: Administrative Capital for Urban Development Stage: Construction Estimated value: $45 billion (Phase 1) 3

High-speed rail plans Scope: 500 km of high speed modern rail network linking north and south Egypt and linking the Mediterranean with the Red Sea. The network consists of three main lines. Developer: Ministry of Transport Stage: In bidding Estimated value: $14 billion 4

Rod al-Farag Axis Scope: The Rod Al Farag Axis received The Guinness World Record for the widest suspension bridge in the world. The bridge is 540 meters long and 67.3 meters wide. It has 6 lanes in both direction. The suspension towers are 92 meters high with 160 cables each. Developer: Ministry of Transport Stage: Complete Estimated value: $9.6 billion 5

Badya Palm Hills Scope: 40,000 units residential development in 6th October City. The project Includes a shopping mall, schools, hotels and commercial offices. Developer: Palm Hills Developments Stage: Design Estimated value: $8.5 billion 6