Regional Geopolitical Tensions Pressure Egypt’s Construction and Engineering Consultancy Sector Linked to Gulf Markets
The value of ongoing and planned projects is estimated at approximately $1.5 trillion
Dr. Walid Sweida, Head of the Engineering Consultancy Committee at the Egyptian Businessmen’s Association and Chairman of Accuracy Engineering Consultancy, stated that the escalating geopolitical tensions in the Middle East—driven by the conflict between the United States and Iran—have had a clear negative impact on Egypt’s construction, building, and engineering consultancy sectors, particularly those reliant on Gulf markets.
Sweida explained that the current crisis has led to a slowdown in construction activity across key regional markets for Egyptian firms, most notably in the UAE and Saudi Arabia. This is largely due to the uncertainty affecting both investors and regional governments.
He added that the reduction in project volumes and the postponement of some developments in Arab markets are directly impacting Egyptian companies, engineering professionals, and expatriate workers. This includes firms with international branches as well as those providing engineering design and consultancy services remotely from Egypt. As a result, urgent government intervention is needed to mitigate these repercussions.
Sweida highlighted that Egyptian companies are deeply integrated into large-scale urban and infrastructure projects across Gulf countries. The total value of projects currently underway or planned in these markets is estimated at around $1.5 trillion, led by mega-projects in Saudi Arabia and the UAE. Consequently, any slowdown in these markets directly affects business volumes and employment opportunities for Egyptian engineers and consultants working abroad.
He emphasized that these developments require swift action to support Egypt’s engineering consultancy and contracting sectors. This can be achieved by launching additional development projects domestically and offering greater incentives and facilitation measures for real estate developers and investors to initiate new projects across various construction segments.
Furthermore, he noted that stimulating real estate investment and simplifying regulatory procedures for developers would enhance construction sector activity and strengthen the ability of Egyptian companies to withstand the impact of regional crises while maintaining their competitiveness in international markets.
Sweida pointed out that Egypt’s recent experience with rapid urban and infrastructure development has proven its effectiveness in driving economic growth and creating substantial employment opportunities for engineers, contractors, and consultancy firms. Introducing new projects at this stage could help absorb the relative slowdown currently affecting some Arab markets.
He also stressed that supporting real estate developers and streamlining investment processes would enable Egyptian engineering consultancy and contracting firms to better navigate the challenges posed by regional instability, positioning Egypt as a strategic hub for engineering expertise and consultancy services.
Finally, Sweida expressed hope for a swift stabilization of the region, warning that continued tensions and military escalation could lead to further complications and a deeper slowdown in construction activity across the region. Such developments would result in significant economic losses for Egypt, particularly in terms of foreign currency inflows from expatriate remittances and exports of consultancy and contracting services.
