The construction industry in North Africa

Four years since the start of the Arab Spring, the Maghreb region is still gripped by political instability. Libya, the worst affected country in the region, is continuing to experience unrest whereas the other countries are seeing a gradual return to normality.

According to a recent World Bank report, the economies of the MENA region (Middle East and North Africa) are moving towards an economic recovery; the estimated 1.2% growth of 2014 is expected to be followed by a further 2.5% increase in 2015 due to an upturn in manufacturing and exports and greater confidence on the part of households and companies.

The most positive forecasts are for Morocco, which is expected to clock up 4.6% growth in 2015, the highest of all Maghreb countries, followed by Egypt (+3.6%), Algeria (+3.3%) and Tunisia (+2.7%). Although Libya is also forecast to see growth (+4.3%), this follows sharp falls over the two-year period 2013-2014 (-13.7% and -21.8% respectively).

While performances have varied considerably from country to country, the overall trend in the construction sector appears encouraging, driven mainly by investments in modernisation and expansion of infrastructure (roads, ports and airports, as well as the project to double the capacity of the Suez Canal in Egypt) with the aim of boosting trade.

An important role is also played by the government social housing programmes designed to cater for the accommodation needs of the poorest segments of the population, while tourist resorts, cultural facilities and shopping centres will also be built with the aim of reviving the tourist industry.

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Morocco | Egypt | Algeria | Tunisia | Lybia