Construction in the Middle East and North Africa (MENA) region has been relatively sluggish and is forecast to grow at 3.3 per cent in 2019, according to a report from data and analytics company GlobalData
The report, Global Construction Outlook to 2023 - Q3 2019 Update, revealed that after a lacklustre 2019, construction growth in the region is forecasted to steadily improve in the next four years, to reach 4.9 percent by 2022-2023,
One of the region’s brightest spots will be Egypt, where GlobalData predicts that construction will expand by an annual average of 11.3 per cent between 2019 and 2023.
“Egypt’s economy is forecast to expand at a relatively rapid rate over the next two years, driven by sustained growth in natural gas production and a recovery in tourism. Delivering an ambitious renewable energy program is a priority for the government. Construction activity is also being driven by Cairo’s urban development programme, which could involve building 23 new cities,” Ghozzi added.
The pace of growth in sub-Saharan Africa will be particularly strong, averaging six percent a year in 2019–2023, Global data said.
According to the report, construction activity in Nigeria will accelerate steadily, supported by government efforts to revitalise the economy by focusing on developing the country’s infrastructure.
But Ethiopia will be Africa’s star performer, with its construction industry continuing to improve in line with the country’s economic expansion, but the pace of expansion will ease back to single-digits, it said.
Saudi Arabia remains the largest regional construction market in the Middle East, despite a contraction in construction in the kingdom in recent years
Construction output is forecast to recover in 2019, growing by 2.6 per cent, before posting average growth of 3.8 per cent in 2020-2023.
