Construction machines and labourers work at the future headquarters of Presidential buildings in the New Administrative Capital (NAC) east of Cairo, Egypt May 2, 2019. Picture taken May 2, 2019. (Photo: Reuters)
Egypt’s New Administrative Capital and the fourth stage of new Egyptian cities are expected to stimulate the construction sector in the country over the medium term, Oxford Business Group (OBG) said in a new report released on Monday.
The new cities are being established in Cairo, Giza, Dakahliya, Beheira, Port Said, Matrouh, North Sinai, Beni Suef, Minya, Assiut, Qena, Luxor and Aswan.
The report also said that a shift towards private sector-led growth gives established firms a critical role to play in infrastructure development, demonstrating that flexible corporate reaction to the crisis and the lack of significant delays to ongoing projects suggest a quicker recovery based on stronger employment figures and a sooner-than-expected boost in consumer spending.
Further, the intensive investment in energy and transport infrastructure is paving the way for export-focused industrial expansion and the development of new urban centres, according to the report.
The report also highlighted Egypt’s economic reform program and the country’s favourable demographic growth, which had put it in a strong position prior to the crisis and allowed it to cope by taking the needed measures to alleviate the impact of the pandemic while boosting growth at the same time.
It also highlighted Egypt’s role in Africa, saying that the country will continue to strengthen its ties to the continent and play a leadership role in the development of trade and industry in coordination with the African Union (AU).
Egypt is moving forward as a centre of economic growth and activity in the region and it is expected to be the only country in the region to witness economic growth and expand in 2020. Moreover, the country has identified long-term strategic opportunities in improving its transport network to boost trade and mobility, according to the report.
It also stressed that current private sector activities and upcoming projects are consistent with Egypt’s long-term needs.