Egypt has solidified its position as the third-largest construction market in the Middle East and North Africa, with a future project pipeline valued at a staggering $565.5 billion, according to Knight Frank’s Egypt Construction Landscape 2025 report.
With approximately $120 billion worth of projects currently under execution—behind only Saudi Arabia and the UAE—Egypt is witnessing sustained activity across infrastructure, real estate, and mega-developments like the New Administrative Capital, Suez Canal expansion, and numerous state-led satellite cities.
According to the Knight Frank report, 51% of the pipeline remains in the study phase, while 39% is in the design phase, leaving only 10% under active construction. This highlights major near-term opportunity regions in feasibility studies, architectural design, and pre-construction consulting. “The volume and timing of future contracts create a decade-long runway for investors—particularly those specializing in early-stage project services,” commented Faisal Durrani, Partner and Head of MENA Research at Knight Frank.
Historically government-funded, Egypt’s construction sector is pivoting as IMF-imposed fiscal constraints tighten public spending. This shift has opened the door for private-sector-led real estate, particularly in residential, commercial, and coastal developments in the Red Sea, North Coast, and New Alamein.
Despite the boom, the sector faces inflationary pressure, exchange-rate volatility, and heavy reliance on imported construction inputs, leading to residential and commercial price increases projected at up to 30% in 2025. “Developers and policy-makers must mitigate risks tied to currency fluctuations, supply chains, and regulatory uncertainty,” warns Zeinab Adel, Head of Egypt Projects & Development at Knight Frank.
Amid this construction momentum, Saudi Arabia’s Sumou Holding Group announced plans to establish its first real estate investment fund in Egypt, targeted by late 2025/early 2026, following a high-level meeting with Prime Minister Mostafa Madbouly.
The announcement signals growing Gulf sovereign capital interest in Egypt’s real estate sector. Sumou intends to invest in prime areas such as Downtown Cairo and expand its footprint from eight countries to thirty, using Adeer International as its Egyptian vehicle. Adding to investor momentum, MIDAR—developer of Mostakbal City—joined forces with Sumou, Adeer International, and Hassan Allam Properties in January to commit USD 2 billion to hospitality and leisure projects in Cairo and MIDAR cities. These ventures aim to support Egypt’s Vision 2030 tourism goals, including expanding hotel capacity and attracting foreign currency.
The Knight Frank outlook views Egypt’s construction potential as “strategic and long-term,” but notes that execution depends on economic stability, continued foreign inflows, and mitigation of rising costs.
For global investors looking to tap into MENA’s most expansive pipeline yet, Egypt offers a mixture of transformative mega-projects and emerging private developments, making it both an infrastructure powerhouse and an evolving haven for real estate finance.
