The Future of Construction in Egypt to 2015: Continuing ...7 Company Profile: The Arab Contractors...

Construction

Industry Forecast Report

www.icd-research.com

The Future of Construction in

Egypt to 2015: Continuing Political

Unrest to Deter Future

Construction Activity Reference code: CN0067MR

Published: August 2011

EXECUTIVE SUMMARY

The Future of Construction in Egypt to 2015: Continuing Political Unrest to Deter Future

Construction Activity

© ICD Research. This product is licensed and is not to be photocopied Published: August 2011

1 Executive Summary

Supported by favorable economic reforms such as a reduction in corporate income taxes, the liberalization of

foreign trade, the encouragement of foreign investment and various government stimulus packages the

Egyptian construction industry recorded a significant CAGR of XX.XX% over the review period. However, as

a result of current political unrest and slow economic growth projections ICD expects decelerated industry

growth over the forecast period, at a CAGR of XX.XX%.

TABLE OF CONTENTS




TABLE OF CONTENTS

1 Executive Summary .............................................................................................................. 2

2 Introduction ......................................................................................................................... 11

2.1 What is this Report About? ..............................................................................................................11

2.2 Definitions .......................................................................................................................................11

2.3 Summary Methodology ...................................................................................................................13

3 Construction Industry Analysis ......................................................................................... 16

3.1 Construction Industry Overview .......................................................................................................16

3.2 Industry Dynamics ...........................................................................................................................17

4 Construction Industry Data ................................................................................................ 18

4.1 Historic Industry Value Review ........................................................................................................18

4.2 Historic Industry Segmentation Review ...........................................................................................19

4.3 Industry Value Forecast ..................................................................................................................21

4.4 Industry Segmentation Forecast ......................................................................................................22

5 Construction Industry: Market Analysis ........................................................................... 24

5.1 Commercial Construction Market Analysis ......................................................................................24

5.1.1 Market Dynamics ...................................................................................................................................... 25

5.1.2 Commercial Construction Market Value Review ...................................................................................... 26

5.1.3 Commercial Construction Market Segmentation Review ......................................................................... 27

5.1.4 Commercial Construction Market Value Forecast .................................................................................... 29

5.1.5 Commercial Construction Market Segmentation Forecast ....................................................................... 30

5.2 Commercial Construction: Category Analysis ..................................................................................32

5.2.1 Leisure and Hospitality Construction Category Value Review ................................................................. 32

5.2.2 Leisure and Hospitality Construction Category Value Forecast ............................................................... 33

5.2.3 Office Buildings Construction Category Value Review ............................................................................. 34

5.2.4 Office Buildings Construction Category Value Forecast .......................................................................... 35

5.2.5 Outdoor Leisure Facilities Construction Category Value Review ............................................................. 36

5.2.6 Outdoor Leisure Facilities Construction Category Value Forecast .......................................................... 37

5.2.7 Retail Buildings Construction Category Value Review ............................................................................. 38

5.2.8 Retail Buildings Construction Category Value Forecast ........................................................................... 39

5.2.9 Other Commercial Construction Category Value Review ........................................................................ 40

5.2.10 Other Commercial Construction Category Value Forecast ...................................................................... 41

5.3 Industrial Construction Market Analysis ...........................................................................................42

5.3.1 Market Dynamics ...................................................................................................................................... 43

5.3.2 Industrial Construction Market Value ........................................................................................................ 44

5.3.3 Industrial Construction Market Segmentation .......................................................................................... 45

5.3.4 Industrial Construction Market Value Forecast ........................................................................................ 47

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5.3.5 Industrial Construction Market Segmentation Forecast ........................................................................... 48

5.4 Industrial Construction: Category Analysis ......................................................................................50

5.4.1 Chemical and Pharmaceutical Plants Construction Category Value Review ........................................... 50

5.4.2 Chemical and Pharmaceutical Plants Construction Category Value Forecast ........................................ 51

5.4.3 Manufacturing Plants Construction Category Value Review .................................................................... 52

5.4.4 Manufacturing Plants Construction Category Value Forecast.................................................................. 53

5.4.5 Metal and Material Processing Plants Construction Category Value Review .......................................... 54

5.4.6 Metal and Material Processing Plants Construction Category Value Forecast ........................................ 55

5.4.7 Refinery Buildings Construction Category Value Review ......................................................................... 56

5.4.8 Refinery Buildings Construction Category Value Forecast ...................................................................... 57

5.4.9 Storage Tanks Construction Category Value Review .............................................................................. 58

5.4.10 Storage Tanks Construction Category Value Forecast ............................................................................ 59

5.4.11 Waste Processing Plants Construction Category Value Review.............................................................. 60

5.4.12 Waste Processing Plants Construction Category Value Forecast ........................................................... 61

5.5 Infrastructure Construction Market Analysis ....................................................................................62

5.5.1 Market Dynamics ...................................................................................................................................... 63

5.5.2 Infrastructure Construction Market Value ................................................................................................. 64

5.5.3 Infrastructure Construction Market Segmentation .................................................................................... 65

5.5.4 Infrastructure Construction Market Value Forecast .................................................................................. 67

5.5.5 Infrastructure Construction Market Segmentation Forecast ..................................................................... 68

5.6 Infrastructure Construction: Category Analysis ................................................................................70

5.6.1 Energy and Communications Infrastructure Construction Category Value Review ................................. 70

5.6.2 Energy and Communications Infrastructure Construction Category Value Forecast ............................... 71

5.6.3 Rail Infrastructure Construction Category Value Review ......................................................................... 72

5.6.4 Rail Infrastructure Construction Category Value Forecast ....................................................................... 73

5.6.5 Road Infrastructure Construction Category Value Review ....................................................................... 74

5.6.6 Road Infrastructure Construction Category Value Forecast..................................................................... 75

5.6.7 Sewage Infrastructure Construction Category Value Review .................................................................. 76

5.6.8 Sewage Infrastructure Construction Category Value Forecast ................................................................ 77

5.6.9 Water Infrastructure Construction Category Value Review ...................................................................... 78

5.6.10 Water Infrastructure Construction Category Value Forecast.................................................................... 79

5.6.11 Other Infrastructure Projects Construction Category Value Review ........................................................ 80

5.6.12 Other Infrastructure Projects Construction Category Value Forecast ...................................................... 81

5.7 Institutional Construction Market Analysis .......................................................................................82

5.7.1 Market Dynamics ...................................................................................................................................... 83

5.7.2 Institutional Construction Market Value .................................................................................................... 84

5.7.3 Institutional Construction Market Segmentation ....................................................................................... 85

5.7.4 Institutional Construction Market Value Forecast ..................................................................................... 87

5.7.5 Institutional Construction Market Segmentation Forecast ........................................................................ 88

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5.8 Institutional Construction: Category Analysis ...................................................................................90

5.8.1 Educational Buildings Construction Category Value Review ................................................................... 90

5.8.2 Educational Buildings Construction Category Value Forecast ................................................................. 91

5.8.3 Healthcare Buildings Construction Category Value Review ..................................................................... 92

5.8.4 Healthcare Buildings Construction Category Value Forecast .................................................................. 93

5.8.5 Institutional Buildings Construction Category Value Review .................................................................... 94

5.8.6 Institutional Buildings Construction Category Value Forecast.................................................................. 95

5.8.7 Religious Buildings Construction Category Value Review ....................................................................... 96

5.8.8 Religious Buildings Construction Category Value Forecast ..................................................................... 97

5.8.9 Research Facilities Construction Category Value Review ....................................................................... 98

5.8.10 Research Facilities Construction Category Value Forecast ..................................................................... 99

5.9 Residential Construction Market Analysis...................................................................................... 100

5.9.1 Market Dynamics .................................................................................................................................... 101

5.9.2 Residential Construction Market Value .................................................................................................. 102

5.9.3 Residential Construction Market Segmentation ..................................................................................... 103

5.9.4 Residential Construction Market Value Forecast ................................................................................... 105

5.9.5 Residential Construction Market Segmentation Forecast ...................................................................... 106

5.10 Residential Construction: Category Analysis ................................................................................. 108

5.10.1 New Multi-Family Housing Construction Category Value Review .......................................................... 108

5.10.2 New Multi-Family Housing Construction Category Value Forecast ....................................................... 109

5.10.3 Residential Building Redevelopment Construction Category Value Review .......................................... 110

5.10.4 Residential Building Redevelopment Construction Category Value Forecast ....................................... 111

5.10.5 Single-Family Housing Construction Category Value Review................................................................ 112

5.10.6 Single-Family Housing Construction Category Value Forecast ............................................................. 113

6 Company Profile: Orascom Construction Industries S.A.E ........................................... 114

6.1 Orascom Construction Industries S.A.E - Company Overview ...................................................... 114

6.2 Orascom Construction Industries S.A.E - Business Description .................................................... 114

6.3 Orascom Construction Industries S.A.E - Main Products and Services ......................................... 116

6.4 Orascom Construction Industries S.A.E - History .......................................................................... 116

6.5 Orascom Construction Industries S.A.E - SWOT Analysis ............................................................ 117

6.5.1 Orascom Construction Industries S.A.E – Strengths ............................................................................. 117

6.5.2 Orascom Construction Industries S.A.E – Weaknesses ........................................................................ 117

6.5.3 Orascom Construction Industries S.A.E – Opportunities ....................................................................... 118

6.5.4 Orascom Construction Industries S.A.E – Threats ................................................................................. 119

6.6 Orascom Construction Industries S.A.E – Company Information ................................................... 120

6.6.1 Orascom Construction Industries S.A.E - Key Competitors ................................................................... 120

6.6.2 Orascom Construction Industries S.A.E - Key Employees ..................................................................... 120

7 Company Profile: The Arab Contractors Osman Ahmed Osman & Co ........................ 121

TABLE OF CONTENTS




7.1 The Arab Contractors Osman Ahmed Osman & Co - Company Overview .................................... 121

7.2 The Arab Contractors Osman Ahmed Osman & Co - Business Description .................................. 121

7.3 The Arab Contractors Osman Ahmed Osman & Co - Main Products and Services ....................... 122

7.4 The Arab Contractors Osman Ahmed Osman & Co - History ........................................................ 122

7.5 The Arab Contractors Osman Ahmed Osman & Co – Company Information ................................. 122

7.5.1 The Arab Contractors Osman Ahmed Osman & Co - Key Competitors ................................................ 123

7.5.2 The Arab Contractors Osman Ahmed Osman & Co - Key Employees .................................................. 123

8 Company Profile: Engineering Consultants Group, S.A. ............................................... 124

8.1 Engineering Consultants Group, S.A. Company Overview ........................................................... 124

8.2 Engineering Consultants Group, S.A. - Business Description ....................................................... 124

8.3 Engineering Consultants Group, S.A. - Main Services.................................................................. 125

8.4 Engineering Consultants Group, S.A. - History ............................................................................. 126

8.5 Engineering Consultants Group, S.A. - Company Information ...................................................... 126

8.5.1 Engineering Consultants Group, S.A. - Key Competitors ...................................................................... 126

8.5.2 Engineering Consultants Group, S.A. - Key Employees ....................................................................... 126

9 Annual Review ................................................................................................................... 127

10 Appendix ............................................................................................................................ 129

10.1 Methodology ................................................................................................................................. 129

10.2 Contact us ..................................................................................................................................... 129

10.3 About ICD Research ..................................................................................................................... 129

10.4 Disclaimer ..................................................................................................................................... 129

TABLE OF CONTENTS




LIST OF FIGURES

Figure 1: Egyptian Overall Construction Industry Dynamics By Market (%), 2006–2015 ..................................................................................... 17 Figure 2: Egyptian Construction Industry Value (US$ Million), 2006–2010 .......................................................................................................... 18 Figure 3: Egyptian Construction Industry Segmentation By Market (%), 2006–2010 ........................................................................................... 20 Figure 4: Egyptian Construction Industry Value Forecast (US$ Million), 2010–2015 ........................................................................................... 21 Figure 5: Egyptian Construction Industry Segmentation Forecast By Market (%), 2015 ...................................................................................... 23 Figure 6: Egyptian Commercial Construction Market Dynamics By Category (%), 2006–2015 ............................................................................ 25 Figure 7: Egyptian Commercial Construction Market Value (US$ Million), 2006–2010 ........................................................................................ 26 Figure 8: Egyptian Commercial Construction Market Segmentation By Category (%),2006–2010 ...................................................................... 28 Figure 9: Egyptian Commercial Construction Market Value Forecast (US$ Million), 2010–2015 ......................................................................... 29 Figure 10: Egyptian Commercial Construction Market Segmentation Forecast By Category (%), 2010–2015 ..................................................... 31 Figure 11: Egyptian Leisure and Hospitality Construction Category Value (US$ Million), 2006–2010 ................................................................. 32 Figure 12: Egyptian Leisure and Hospitality Construction Category Value Forecast (US$ Million), 2010–2015 ................................................... 33 Figure 13: Egyptian Office Buildings Construction Category Value (US$ Million), 2006–2010 ............................................................................. 34 Figure 14: Egyptian Office Buildings Construction Category Value Forecast (US$ Million), 2010–2015 .............................................................. 35 Figure 15: Egyptian Outdoor Leisure Facilities Construction Category Value (US$ Million), 2006–2010 ............................................................. 36 Figure 16: Egyptian Outdoor Leisure Facilities Construction Category Value Forecast (US$ Million), 2010–2015............................................... 37 Figure 17: Egyptian Retail Buildings Construction Category Value (US$ Million), 2006–2010 ............................................................................. 38 Figure 18: Egyptian Retail Buildings Construction Category Value Forecast (US$ Million), 2010–2015 .............................................................. 39 Figure 19: Egyptian Other Commercial Construction Category Value (US$ Million), 2006–2010 ........................................................................ 40 Figure 20: Egyptian Other Commercial Construction Category Value Forecast (US$ Million), 2010–2015 .......................................................... 41 Figure 21: Egyptian Industrial Construction Market Dynamics By Category (%), 2006–2015 .............................................................................. 43 Figure 22: Egyptian Industrial Construction Market Value (US$ Million), 2006–2010 .......................................................................................... 44 Figure 23: Egyptian Industrial Construction Market Segmentation By Category (%),2006–2010 ......................................................................... 46 Figure 24: Egyptian Industrial Construction Market Value Forecast (US$ Million), 2010–2015 ............................................................................ 47 Figure 25: Egyptian Industrial Construction Market Segmentation Forecast By Category (%),2010–2015 .......................................................... 49 Figure 26: Egyptian Chemical and Pharmaceutical Plants Construction Category Value (US$ Million), 2006–2010 ............................................ 50 Figure 27: Egyptian Chemical and Pharmaceutical Plants Construction Category Value Forecast (US$ Million), 2010–2015 ............................. 51 Figure 28: Egyptian Manufacturing Plants Construction Category Value (US$ Million), 2006–2010 .................................................................... 52 Figure 29: Egyptian Manufacturing Plants Construction Category Value Forecast (US$ Million), 2010–2015 ..................................................... 53 Figure 30: Egyptian Metal and Material Processing Plants Construction Category Value (US$ Million), 2006–2010 ........................................... 54 Figure 31: Egyptian Metal and Material Processing Plants Construction Category Value Forecast (US$ Million), 2010–2015 ............................ 55 Figure 32: Egyptian Refinery Buildings Construction Category Value (US$ Million), 2006–2010 ......................................................................... 56 Figure 33: Egyptian Refinery Buildings Construction Category Value Forecast (US$ Million), 2010–2015 .......................................................... 57 Figure 34: Egyptian Storage Tanks Construction Category Value (US$ Million), 2006–2010 .............................................................................. 58 Figure 35: Egyptian Storage Tanks Construction Category Value Forecast (US$ Million), 2010–2015 ............................................................... 59 Figure 36: Egyptian Waste Processing Plants Construction Category Value (US$ Million), 2006–2010 .............................................................. 60 Figure 37: Egyptian Waste Processing Plants Construction Category Value Forecast (US$ Million), 2010–2015 ............................................... 61 Figure 38: Egyptian Infrastructure Construction Market Dynamics By Category (%), 2006–2015 ........................................................................ 63 Figure 39: Egyptian Infrastructure Construction Market Value (US$ Million), 2006–2010 .................................................................................... 64 Figure 40: Egyptian Infrastructure Construction Market Segmentation By Category (%),2006–2010 .................................................................. 66 Figure 41: Egyptian Infrastructure Construction Market Value Forecast (US$ Million), 2010–2015 ..................................................................... 67 Figure 42: Egyptian Infrastructure Construction Market Segmentation Forecast By Category (%),2010–2015 .................................................... 69 Figure 43: Egyptian Energy and Communications Infrastructure Construction Category Value (US$ Million), 2006–2010 .................................. 70 Figure 44: Egyptian Energy and Communications Infrastructure Construction Category Value Forecast (US$ Million), 2010–2015 .................... 71 Figure 45: Egyptian Rail Infrastructure Construction Category Value (US$ Million), 2006–2010 ......................................................................... 72 Figure 46: Egyptian Rail Infrastructure Construction Category Value Forecast (US$ Million), 2010–2015 ........................................................... 73 Figure 47: Egyptian Road Infrastructure Construction Category Value (US$ Million), 2006–2010 ....................................................................... 74 Figure 48: Egyptian Road Infrastructure Construction Category Value Forecast (US$ Million), 2010–2015 ........................................................ 75 Figure 49: Egyptian Sewage Infrastructure Construction Category Value (US$ Million), 2006–2010 ................................................................... 76 Figure 50: Egyptian Sewage Infrastructure Construction Category Value Forecast (US$ Million), 2010–2015 .................................................... 77 Figure 51: Egyptian Water Infrastructure Construction Category Value (US$ Million), 2006–2010 ...................................................................... 78 Figure 52: Egyptian Water Infrastructure Construction Category Value Forecast (US$ Million), 2010–2015 ....................................................... 79 Figure 53: Egyptian Other Infrastructure Projects Construction Category Value (US$ Million), 2006–2010 ......................................................... 80 Figure 54: Egyptian Other Infrastructure Projects Construction Category Value Forecast (US$ Million), 2010–2015 .......................................... 81 Figure 55: Egyptian Institutional Construction Market Dynamics By Category (%), 2006–2015 ........................................................................... 83 Figure 56: Egyptian Institutional Construction Market Value (US$ Million), 2006–2010 ....................................................................................... 84 Figure 57: Egyptian Institutional Construction Market Segmentation By Category (%),2006–2010 ..................................................................... 86

TABLE OF CONTENTS




Figure 58: Egyptian Institutional Construction Market Value Forecast (US$ Million), 2010–2015 ........................................................................ 87 Figure 59: Egyptian Institutional Construction Market Segmentation Forecast By Category (%),2010–2015 ....................................................... 89 Figure 60: Egyptian Educational Buildings Construction Category Value (US$ Million), 2006–2010 ................................................................... 90 Figure 61: Egyptian Educational Buildings Construction Category Value Forecast (US$ Million), 2010–2015 ..................................................... 91 Figure 62: Egyptian Healthcare Buildings Construction Category Value (US$ Million), 2006–2010 ..................................................................... 92 Figure 63: Egyptian Healthcare Buildings Construction Category Value Forecast (US$ Million), 2010–2015 ...................................................... 93 Figure 64: Egyptian Institutional Buildings Construction Category Value (US$ Million), 2006–2010 .................................................................... 94 Figure 65: Egyptian Institutional Buildings Construction Category Value Forecast (US$ Million), 2010–2015 ..................................................... 95 Figure 66: Egyptian Religious Buildings Construction Category Value (US$ Million), 2006–2010 ....................................................................... 96 Figure 67: Egyptian Religious Buildings Construction Category Value Forecast (US$ Million), 2010–2015 ......................................................... 97 Figure 68: Egyptian Research Facilities Construction Category Value (US$ Million), 2006–2010 ....................................................................... 98 Figure 69: Egyptian Research Facilities Construction Category Value Forecast (US$ Million), 2010–2015 ......................................................... 99 Figure 70: Egyptian Residential Construction Market Dynamics By Category (%), 2006–2015 ..........................................................................101 Figure 71: Egyptian Residential Construction Market Value (US$ Million), 2006–2010 ......................................................................................102 Figure 72: Egyptian Residential Construction Market Segmentation By Category (%),2006–2010 .....................................................................104 Figure 73: Egyptian Residential Construction Market Value Forecast (US$ Million), 2010–2015 .......................................................................105 Figure 74: Egyptian Residential Construction Market Segmentation Forecast By Category (%),2010–2015 ......................................................107 Figure 75: Egyptian New Multi-Family Housing Construction Category Value (US$ Million), 2006–2010 ...........................................................108 Figure 76: Egyptian New Multi-Family Housing Construction Category Value Forecast (US$ Million), 2010–2015.............................................109 Figure 77: Egyptian Residential Building Redevelopment Construction Category Value (US$ Million), 2006–2010............................................110 Figure 78: Egyptian Residential Building Redevelopment Construction Category Value Forecast (US$ Million), 2010–2015 .............................111 Figure 79: Egyptian Single-Family Housing Construction Category Value (US$ Million), 2006–2010 .................................................................112 Figure 80: Egyptian Single-Family Housing Construction Category Value Forecast (US$ Million), 2010–2015 ..................................................113

TABLE OF CONTENTS




LIST OF TABLES

Table 1: ICD Construction Market Definitions ..................................................................................................................................................... 12 Table 2: Egyptian Construction Industry Value, 2006–2010 ................................................................................................................................ 18 Table 3: Egyptian Construction Industry Segmentation By Market (EGP Million), 2006–2010 ............................................................................. 19 Table 4: Egyptian Construction Industry Segmentation By Market (US$ Million), 2006–2010 ............................................................................. 19 Table 5: Egyptian Construction Industry Value Forecast, 2010–2015 ................................................................................................................. 21 Table 6: Egyptian Construction Industry Segmentation Forecast By Market (EGP Million), 2010–2015 .............................................................. 22 Table 7: Egyptian Construction Industry Segmentation Forecast By Market (US$ Million), 2010–2015 ............................................................... 22 Table 8: Egyptian Commercial Construction Market Value, 2006–2010 .............................................................................................................. 26 Table 9: Egyptian Commercial Construction Market Segmentation By Category (EGP Million), 2006–2010 ....................................................... 27 Table 10: Egyptian Commercial Construction Market Segmentation By Category (US$ Million), 2006–2010 ...................................................... 27 Table 11: Egyptian Commercial Construction Market Value Forecast, 2010–2015 ............................................................................................. 29 Table 12: Egyptian Commercial Construction Market Segmentation Forecast By Category (EGP Million), 2010–2015 ....................................... 30 Table 13: Egyptian Commercial Construction Market Segmentation Forecast By Category (US$ Million), 2010–2015 ....................................... 30 Table 14: Egyptian Leisure and Hospitality Construction Category Value, 2006–2010 ........................................................................................ 32 Table 15: Egyptian Leisure and Hospitality Construction Category Value Forecast, 2010–2015 ......................................................................... 33 Table 16: Egyptian Office Buildings Construction Category Value, 2006–2010 ................................................................................................... 34 Table 17: Egyptian Office Buildings Construction Category Value Forecast, 2010–2015 .................................................................................... 35 Table 18: Egyptian Outdoor Leisure Facilities Construction Category Value, 2006–2010 ................................................................................... 36 Table 19: Egyptian Outdoor Leisure Facilities Construction Category Value Forecast, 2010–2015 ..................................................................... 37 Table 20: Egyptian Retail Buildings Construction Category Value, 2006–2010 ................................................................................................... 38 Table 21: Egyptian Retail Buildings Construction Category Value Forecast, 2010–2015 .................................................................................... 39 Table 22: Egyptian Other Commercial Construction Category Value, 2006–2010 ............................................................................................... 40 Table 23: Egyptian Other Commercial Construction Category Value Forecast, 2010–2015 ................................................................................ 41 Table 24: Egyptian Industrial Construction Market Value, 2006–2010 ................................................................................................................ 44 Table 25: Egyptian Industrial Construction Market Segmentation By Category (EGP Million), 2006–2010 .......................................................... 45 Table 26: Egyptian Industrial Construction Market Segmentation By Category (US$ Million), 2006–2010 .......................................................... 45 Table 27: Egyptian Industrial Construction Market Value Forecast, 2010–2015 .................................................................................................. 47 Table 28: Egyptian Industrial Construction Market Segmentation Forecast By Category (EGP Million), 2010–2015 ........................................... 48 Table 29: Egyptian Industrial Construction Market Segmentation Forecast By Category (US$ Million), 2010–2015 ............................................ 48 Table 30: Egyptian Chemical and Pharmaceutical Plants Construction Category Value, 2006–2010 .................................................................. 50 Table 31: Egyptian Chemical and Pharmaceutical Plants Construction Category Value Forecast, 2010–2015 ................................................... 51 Table 32: Egyptian Manufacturing Plants Construction Category Value, 2006–2010 .......................................................................................... 52 Table 33: Egyptian Manufacturing Plants Construction Category Value Forecast, 2010–2015............................................................................ 53 Table 34: Egyptian Metal and Material Processing Plants Construction Category Value, 2006–2010 ................................................................. 54 Table 35: Egyptian Metal and Material Processing Plants Construction Category Value Forecast, 2010–2015 ................................................... 55 Table 36: Egyptian Refinery Buildings Construction Category Value, 2006–2010 ............................................................................................... 56 Table 37: Egyptian Refinery Buildings Construction Category Value Forecast, 2010–2015 ................................................................................ 57 Table 38: Egyptian Storage Tanks Construction Category Value, 2006–2010 .................................................................................................... 58 Table 39: Egyptian Storage Tanks Construction Category Value Forecast, 2010–2015 ...................................................................................... 59 Table 40: Egyptian Waste Processing Plants Construction Category Value, 2006–2010 .................................................................................... 60 Table 41: Egyptian Waste Processing Plants Construction Category Value Forecast, 2010–2015...................................................................... 61 Table 42: Egyptian Infrastructure Construction Market Value, 2006–2010 .......................................................................................................... 64 Table 43: Egyptian Infrastructure Construction Market Segmentation By Category (EGP Million), 2006–2010 ................................................... 65 Table 44: Egyptian Infrastructure Construction Market Segmentation By Category (US$ Million), 2006–2010 .................................................... 65 Table 45: Egyptian Infrastructure Construction Market Value Forecast, 2010–2015 ........................................................................................... 67 Table 46: Egyptian Infrastructure Construction Market Segmentation Forecast By Category (EGP Million), 2010–2015 ..................................... 68 Table 47: Egyptian Infrastructure Construction Market Segmentation Forecast By Category (US$ Million), 2010–2015 ..................................... 68 Table 48: Egyptian Energy and Communications Infrastructure Construction Category Value, 2006–2010 ........................................................ 70 Table 49: Egyptian Energy and Communication Infrastructure Construction Category Value Forecast, 2010–2015 ............................................ 71 Table 50: Egyptian Rail Infrastructure Construction Category Value, 2006–2010 ............................................................................................... 72 Table 51: Egyptian Rail Infrastructure Construction Category Value Forecast, 2010–2015 ................................................................................. 73 Table 52: Egyptian Road Infrastructure Construction Category Value, 2006–2010 ............................................................................................. 74 Table 53: Egyptian Road Infrastructure Construction Category Value Forecast, 2010–2015 .............................................................................. 75 Table 54: Egyptian Sewage Infrastructure Construction Category Value, 2006–2010 ......................................................................................... 76 Table 55: Egyptian Sewage Infrastructure Construction Category Value Forecast, 2010–2015 .......................................................................... 77 Table 56: Egyptian Water Infrastructure Construction Category Value, 2006–2010 ............................................................................................ 78 Table 57: Egyptian Water Infrastructure Construction Category Value Forecast, 2010–2015.............................................................................. 79

TABLE OF CONTENTS




Table 58: Egyptian Other Infrastructure Projects Construction Category Value, 2006–2010 ............................................................................... 80 Table 59: Egyptian Other Infrastructure Projects Construction Category Value Forecast, 2010–2015 ................................................................ 81 Table 60: Egyptian Institutional Construction Market Value, 2006–2010 ............................................................................................................. 84 Table 61: Egyptian Institutional Construction Market Segmentation By Category (EGP Million), 2006–2010 ...................................................... 85 Table 62: Egyptian Institutional Construction Market Segmentation By Category (US$ Million), 2006–2010 ....................................................... 85 Table 63: Egyptian Institutional Construction Market Value Forecast, 2010–2015 .............................................................................................. 87 Table 64: Egyptian Institutional Construction Market Segmentation Forecast By Category (EGP Million), 2010–2015 ........................................ 88 Table 65: Egyptian Institutional Construction Market Segmentation Forecast By Category (US$ Million), 2010–2015 ........................................ 88 Table 66: Egyptian Educational Buildings Construction Category Value, 2006–2010 .......................................................................................... 90 Table 67: Egyptian Educational Buildings Construction Category Value Forecast, 2010–2015 ........................................................................... 91 Table 68: Egyptian Healthcare Buildings Construction Category Value, 2006–2010 ........................................................................................... 92 Table 69: Egyptian Healthcare Buildings Construction Category Value Forecast, 2010–2015 ............................................................................ 93 Table 70: Egyptian Institutional Buildings Construction Category Value, 2006–2010 .......................................................................................... 94 Table 71: Egyptian Institutional Buildings Construction Category Value Forecast, 2010–2015............................................................................ 95 Table 72: Egyptian Religious Buildings Construction Category Value, 2006–2010 ............................................................................................. 96 Table 73: Egyptian Religious Buildings Construction Category Value Forecast, 2010–2015 ............................................................................... 97 Table 74: Egyptian Research Facilities Construction Category Value, 2006–2010.............................................................................................. 98 Table 75: Egyptian Research Facilities Construction Category Value Forecast, 2010–2015 ............................................................................... 99 Table 76: Egyptian Residential Construction Market Value, 2006–2010 ............................................................................................................102 Table 77: Egyptian Residential Construction Market Segmentation By Category (EGP Million), 2006–2010 ......................................................103 Table 78: Egyptian Residential Construction Market Segmentation By Category (US$ Million), 2006–2010 ......................................................103 Table 79: Egyptian Residential Construction Market Value Forecast, 2010–2015 ..............................................................................................105 Table 80: Egyptian Residential Construction Market Segmentation Forecast By Category (EGP Million), 2010–2015 .......................................106 Table 81: Egyptian Residential Construction Market Segmentation Forecast By Category (US$ Million), 2010–2015 ........................................106 Table 82: Egyptian New Multi-Family Housing Construction Category Value, 2006–2010 .................................................................................108 Table 83: Egyptian New Multi-Family Housing Construction Category Value Forecast, 2010–2015 ...................................................................109 Table 84: Egyptian Residential Buildings Redevelopment Construction Category Value, 2006–2010 ................................................................110 Table 85: Egyptian Residential Buildings Redevelopment Construction Category Value Forecast, 2010–2015 .................................................111 Table 86: Egyptian Single-Family Housing Construction Category Value, 2006–2010 .......................................................................................112 Table 87: Egyptian Single-Family Housing Construction Category Value Forecast, 2010–2015 ........................................................................113 Table 88: Orascom Construction Industries S.A.E, Key Facts............................................................................................................................114 Table 89: Orascom Construction Industries S.A.E, Major Products & Services ..................................................................................................116 Table 90: Orascom Construction Industries S.A.E, History ................................................................................................................................116 Table 91: Orascom Construction Industries S.A.E,, Key Employees ..................................................................................................................120 Table 92: The Arab Contractors Osman Ahmed Osman & Co, Key Facts ..........................................................................................................121 Table 93: The Arab Contractors Osman Ahmed Osman & Co, Major Products & Services ................................................................................122 Table 94: The Arab Contractors Osman Ahmed Osman & Co, History ..............................................................................................................122 Table 95: The Arab Contractors Osman Ahmed Osman & Co,, Key Employees ................................................................................................123 Table 96: Engineering Consultants Group, S.A. , Key Facts ..............................................................................................................................124 Table 97: Engineering Consultants Group, S.A. , Major Services ......................................................................................................................125 Table 98: Engineering Consultants Group, S.A. , History ...................................................................................................................................126 Table 99: Engineering Consultants Group, S.A. ,, Key Employees ....................................................................................................................126

INTRODUCTION




2 Introduction

2.1 What is this Report About?

This report is the result of ICD’s extensive market and company research covering the Egyptian construction

Industry. It provides detailed analysis of both historic and forecast construction industry values at market and

category level, analysis of the leading companies in the industry, and key news.

―The Future of Construction in Egypt to 2015: Continuing Political Unrest to Deter Future Construction

Activity‖ provides a top-level overview and detailed market, category and company-specific insights into the

operating environment for construction contractors. It is an essential tool for companies active across the

Egyptian construction value chain and for new competitors considering entering the industry.

2.2 Definitions

For the purposes of this report, the following timeframes apply:

Review period: 2006–2010

Forecast period: 2011–2015

The total value of construction projects can be broadly segmented into the following sectors, related to the

products and service types provided during the project:

Land acquisition and preparation

Planning and feasibility studies

Architectural and engineering design

Construction

o Construction services

Labor

Project management

o Materials

Building products

Construction materials

o Construction equipment

Advisory services

o Financing

o Inspection and testing

o Legal

Equipment and furnishings

o Interior products

o Exterior products

o Industrial equipment

INTRODUCTION




Other

This report focuses on the value of construction services, as represented by the value-added through the

use and management of the construction labor force.

All data is collected in EGP Million at current prices and converted into US$. All conversions into US$, of

current, historical and forecast data alike, are made by taking a yearly average exchange rate. Due to

currency fluctuations, there can be variations in growth rates in terms of US$ as compared to EGP Million.

All the values in tables, with the exception of compound annual growth rate (CAGR) values, and compound

annual rate of change (CARC) are displayed to two decimal places, and therefore growth rates may appear

inconsistent with absolute values due to this rounding method.

The key market categories featured in the report are defined below:

Table 1: ICD Construction Market Definitions

Market Definition

Commercial construction

Includes the construction of projects such as office buildings, sports complexes, shopping centers and hotels. For reporting purposes, the market is split into five main areas: leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings and other commercial construction.

Infrastructure construction

A range of heavy infrastructure construction projects including, but not limited to, the construction of highways, bridges, tunnels, water lines, sewer lines, pipelines, power and communication transmission lines, dams, dikes, docks, drainage projects, harbors, reservoirs, canals, sewage treatment plants, water treatment plants, subways, and other mass transit projects. For reporting purposes, the market is split into six main areas: energy and communication infrastructure, rail infrastructure, road infrastructure, sewage infrastructure, water infrastructure and other infrastructure projects.

Industrial construction

Consists of the construction — including new builds, extensions and major rebuilds — of industrial buildings. The construction of additional structures with similar production processes to industrial buildings, for example incinerators, cement plants, blast furnaces and similar non-building structures is also included. For reporting purposes, the market is split into six main areas: chemical and pharmaceutical plants, manufacturing plants, metal and material processing plants, refinery buildings, storage tanks and waste processing plants.

Institutional construction

Includes the construction of buildings and facilities that do not fall within the remit of commercial construction, but which by nature are not industrial. This includes educational institutions, research facilities, healthcare facilities, and religious buildings. These may be either public or private sector. For reporting purposes, the market is split into five main areas: educational buildings, healthcare buildings, institutional buildings, religious buildings and research facilities.

Residential construction

Includes the construction, renovation and demolition of residential buildings such as houses, townhouses, cottages, condominiums, single-unit dwellings, sub-divisions and apartments. For reporting purposes, the market is split into three main areas: new multi-family housing, residential building redevelopment and single-family housing.

Source: ICD Research Analysis / © ICD Research

INTRODUCTION




2.3 Summary Methodology

All ICD reports are rigorously sourced and created according to a comprehensive four-stage methodology:

1) Market study

A) Standardization

Market definitions are specified using recognized industry classifications. The same definition is used

for every country.

Annual average currency exchange rates are collected for the latest complete year. These are then

applied across both the historical and forecast data to remove exchange rate fluctuations.

B) Internal audit

Review of in-house databases to gather existing data:

o Historic market databases and reports

o Company database

o Construction magazine portfolio

o Construction projects database

C) Trend monitoring and primary research

Review of the latest construction company and project trends

Biannual surveys using expert panels compiled from across the construction value chain:

o Construction contractors

o Equipment and material manufacturers and suppliers

o Architects and designers

o Project owners and financiers

o Project advisors

2) Research

A) Sources

Collection of the latest market-specific data from a wide variety of respected industry sources:

o Government statistics

o Industry associations

o Company filings

o Broker reports

o International organizations

B) Expert opinion

Collation of opinion taken from ICD journalist interviews of leading industry figures

INTRODUCTION




Analysis of third-party opinion and forecasts:

o Broker reports

o Industry associations

o Construction media

o Official government sources

C) Data consolidation and verification

Consolidation of data and opinion to create historical datasets

Creation of models to benchmark data across sectors and regions

3) Analysis

A) Market forecasts

Feed of forecast data into market models:

o Macroeconomic indicators

o Industry-specific drivers

Analysis of the ICD Construction Projects Database to identify trends by sector:

o Latest project announcements

o Financing shortfalls

o Project cancellations and postponements

B) Report writing

Analysis of market data

Discussion of company and industry trends and issues

Integration of survey results

Annual review of financial deal and construction project trends

INTRODUCTION




4) Quality control

A) Templates

Detailed process manuals

Standardized report templates and accompanying style guides

Complex forecasting tools used to ensure forecast methodologies are consistently applied

Quality control checklists

B) Quality control process

Competitor review

Senior level quality control

Randomized spot checks on data integrity

Benchmark checks across databases

Market data cross-checked for consistency with accumulated data from:

o ICD Construction Projects Database

o Company filings

CONSTRUCTION INDUSTRY ANALYSIS




3 Construction Industry Analysis

3.1 Construction Industry Overview

During a period characterized by a global financial crisis and weak economic growth, the Egyptian

construction industry performed strongly, increasing by an annual average rate of XX.XX% during 2008–

2010. Such growth was accomplished by the implementation of various stimulus packages introduced

by the Egyptian government during this period. The first stimulus package of EGPXX.XX billion was

announced in October 2008 followed by a second package of EGPXX.XX billion in June 2009. In

January 2010, a further stimulus package of EGPXX.XX billion, which included EGPXX.XX billion for

water treatment projects, EGPXX.XX billion for social programs, EGPXX.XX million for developing land

near suburban areas, EGPXX.XX million for the development of Cairo's ring road and EGPXX.XX

million for housing projects. Overall, the construction industry in Egypt grew at a CAGR of XX.XX%

during the review period.





3.2 Industry Dynamics

Within the Egyptian construction industry, infrastructure construction was the largest market in 2010 with

a share of XX.XX%. In terms of growth the infrastructure construction market registered the highest

review period CAGR of XX.XX% and is expected to record a CAGR of XX.XX% over the forecast period.

Commercial construction observed the second fastest growth rates in the market during the review

period, with a CAGR of XX.XX%.

Figure 1: Egyptian Overall Construction Industry Dynamics By Market (XX), 2006–2015

Note: Bubble size represents 2010 market value (EGP million)


Note: - The numbers or % figures shown in this graph and the subsequent graphs are dummy





4 Construction Industry Data

4.1 Historic Industry Value Review

The Egyptian construction industry valued EGPXX.XX billion in 2010, representing an increase of

XX.XX% over figures from 2009. Over the review period the industry achieved a CAGR of XX.XX%.

Table 2: Egyptian Construction Industry Value, 2006–2010

Year US$ Million EGP Million % Growth

2006

2007

2008

2009

2010

CAGR 2006–2010 XX.XX%


Figure 2: Egyptian Construction Industry Value (XX), 2006–2010






4.2 Historic Industry Segmentation Review

The largest market in the Egyptian construction industry in 2010 was infrastructure construction, with a

value of EGPXX.XX billion, equal to XX.XX% of the total construction industry. The second largest

market was industrial construction which valued EGPXX.XX billion, followed by commercial construction

valuing EGPXX.XX billion.

Infrastructure construction was the fastest growing market in the Egyptian construction industry during

the review period with a CAGR of XX.XX%, followed by commercial construction with a CAGR of

XX.XX% and institutional construction with a CAGR of XX.XX%.

Table 3: Egyptian Construction Industry Segmentation By Market (XX), 2006–2010

Market 2006 2007 2008 2009 2010 CAGR

2006–2010

Infrastructure Construction

Industrial Construction

Commercial Construction

Residential Construction

Institutional Construction

Overall


Table 4: Egyptian Construction Industry Segmentation By Market (XX), 2006–2010

Market 2006 2007 2008 2009 2010 CAGR

2006–2010






Overall






Figure 3: Egyptian Construction Industry Segmentation By Market (XX), 2006–2010






4.3 Industry Value Forecast

ICD expects the Egyptian construction industry to value EGPXX.XX billion in 2015, compared to EGPXX.XX

billion in 2010. The industry is forecast to achieve a CAGR of XX.XX% over the forecast period.

Table 5: Egyptian Construction Industry Value Forecast, 2010–2015

Year US$ Million EGP Million % Growth

2010

2011

2012

2013

2014

2015

CAGR 2010-2015 XX.XX%


Figure 4: Egyptian Construction Industry Value Forecast (XX), 2010–2015






4.4 Industry Segmentation Forecast

Infrastructure construction is forecast to be the largest market in the industry in 2015 and value EGPXX.XX

billion, a market share of XX.XX% and an increase of XX.XX percentage points over figures from 2010. The

second largest market is forecast to be industrial construction with a market share of XX.XX%.

Table 6: Egyptian Construction Industry Segmentation Forecast By Market (XX), 2010–2015

Market 2010 2011 2012 2013 2014 2015 CAGR

2010–2015






Overall


Table 7: Egyptian Construction Industry Segmentation Forecast By Market (XX), 2010–2015

Market 2010 2011 2012 2013 2014 2015 CAGR

2010–2015






Overall






Figure 5: Egyptian Construction Industry Segmentation Forecast By Market (XX), 2015


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