Egypt’s Minister of Planning and Economic Development, Hala El-Said, has revealed that the government targets to inject about EGP 136.4bn, equivalent to 18.5% of the country’s total investment plan for fiscal year 2020/21, in the urban development sector.
These investments are split into three parts: real estate activities constitute the largest part at a rate of 45.6% (EGP 62.1bn), while 28.5% of investment (EGP 38.9bn) goes to construction works, and 25.9% (EGP 35.3bn) goes to water and sanitation projects.
A ministerial report clarified that the urban development sector’s share in Egypt’s gross domestic product (GDP) at constant prices is expected to reach about EGP 706bn during 2020/21, with a growth rate of 4.7% over the previous year.
The sector’s share of GDP is divided into three parts: the water and sanitation sector is targeting about EGP 23bn, the construction works targets about EGP 269.4bn in 2020/21, up from EGP 253.1bn in the previous year, and the real estate activities expects EGP 413.3bn output, compared to EGP 398.6bn in the previous year.
As for the urban development sector’s share of GDP at current prices, the report added that it is targeted to reach about 19.2% or EGP 1246.8bn up from EGP 1059.6bn in 2019/20.
The report pointed out that Egypt targets to increase the output of the urban development sector at the current prices from EGP 1680.3bn in 2019/20 to about EGP 1975.2bn during 2020/21, an increase of about 17.9%. As for constant prices, it’s targeted to increase the sector’s output from about EGP 1068.2bn in 2019/20 to EGP 1119.7bn in 2020/21, an increase of about 5.7%.