According to a recent market report by BNC Project Intelligence, the construction market in North Africa is booming due to several active high-value projects with ±US$473bn investment.
The report states that Egypt constitutes a majority of 71% of the total project investments in North Africa with major projects in the urban construction and utilities sectors valued at nearly US$300bn.
The BNC report further states that the construction market in the region has been advancing following a period of socio-economic instability in 2011. The GDP of North Africa has been growing since 2011 with a six-year estimated growth rate of approximately 20%.
New investment opportunities are opening up as geopolitical tensions gradually ease and governments rebuild their economies.
Given the current low oil prices, governments are focusing on different sectors such as urban construction and utilities. Increasing population and urbanisation are driving many of the construction projects in the region. The demand for infrastructure and housing is growing in highly urbanised countries such as Algeria and in densely populated cities such as Cairo.
Governments’ investment in the utilities sector to address the pressing constraints of the existing power systems are set to develop the infrastructure system, leading to more investment in the construction market.
In addition, various technological innovations such as renewable power, energy become more economical and widespread use in the region, and add value to the growth of North Africa’s construction market.
Also, government are investing in tourism and hospitality. Morocco is investing in tourism with an aim of becoming a top-20 tourism destination by 2020, and Tunisia is investing in medical and cultural tourism, thereby attracting foreign investors and private contractors in the business of construction market in North Africa.
