Over the past quarter, the Egyptian construction industry as with most other industries, has been impacted by the further devaluation of the Egyptian pound, inflation, increase in fuel prices and restrictions imposed by the government on the import of material, equipment, and commodities. In light of such changes, Gleeds has worked closely with different parts of the supply chain in order to produce an up-to-date and accurate representation of the impacts of such changes on material prices and key economic indices.
Geopolitical uncertainty in Europe, despite Egypt not being a part of the conflict, has caused high volatility in construction costs. With most raw materials and fuel imported to Egypt from Europe, production of construction materials has fluctuated, which in turn has caused an uncertain footing.
Enter the local Gleeds Insights and Analytics team. Our Cairo office has been analysing the Egyptian market with reports such as this one for the past decade. In this report we advise clients to reassess their use of imported materials to avoid delays or shortages. In addition to detailed analysis of the rise in construction material prices during 2022 (reinforcement steel has risen by 25-30%, the cost of cement has increased by 35-45% for example), it is suggested that inflation risk is shared between clients and contractors to avoid any high premiums by contractors at this stage of market volatility.
We’re pleased to share our in-depth insight with you regarding the Egyptian Market.