Construction Equipment in Egypt

A Hot Tip about Building Products and Construction in Egypt

Last updated: 13 Mar 2011


Construction is one of the most active sectors of the Egyptian economy accounting for 8% of the total Egyptian employment and contributed in 2008 about 6% to GDP. There are 100 different industries linked to the construction industry. Construction equipment is a major sub-sector in Egypt's substantial construction industry, with an annual growth of 15% over the last three years. U.S. products maintain the predominant market share in the construction equipment market. Demand on used equipment is growing, due to price differentials. Public sector or government-owned companies are not allowed to purchase used equipment.


Market Demand

The construction industry continues to be one of the most important sectors of Egypt’s economy. With the high rate of population increase at 1.2% per annum, demand on construction is increasing for public utilities such as expansion of potable water systems, sanitary drainage facilities, roads and bridges, residential housing, hotels, and various infrastructure projects.


Construction equipment is a major factor in the viability of completing future construction projects. The majority of construction equipment is imported from the U.S., Europe, and Japan. The U.S. market share currently is 45% percent and dominates the market for wheel loaders and motor graders, bulldozers, and excavators. The local market is very receptive to U.S. equipment because of its excellent reputation and resale value. Demand for used equipment has been on the rise for the last few years, and increasing lately due to the global economic slowdown. Construction equipment sellers and users attend specialized auctions, whether in the Gulf Countries or the U.S.A., looking for reasonably priced and well-maintained used equipment.



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Posted: 26 May 2010, last updated 13 March 2011

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