Egypt's construction opportunities

Cairo is experiencing a big construction boom and there are many job opportunities for people working in construction

Sophie Griffiths

Working in EgyptCairo is one big building site. Combine this with the forecasts for Egypt’s economic growth and its government’s big investment plans, and it seems that it’s time that UK firms started to take Egypt seriously.

How to break into the market

The first thing you need is an Egyptian partner, because foreign companies are required to use a local agent to bid for government work. 

They can also help you pick up “after sales” work. This includes maintenance and replacement works, and any training that might be required for a building’s users.

Furthermore, they will help guide you through Egyptian bureaucracy.

Getting to know the client is key to business in Egypt. Don’t think you can do business just by emailing or phoning: you need to be out there and talking to people face to face.

Local knowledge can also help you navigate Egyptian law. For instance, you must build within three years of acquiring land.

Top nine tips

  1. Public tenders are advertised in daily newspapers locally and abroad.
  2. The successful bidder must pay a bond to the client of up to 5% within 10 days of the tender being accepted. This performance bond regulates the relationship between the two parties (the owner of the project and the contractor), in case of falling behind with implementation of the contract conditions. It is usually released after final handover.
  3. A maximum fine of up to 10% of the value of the contract may be levied on contractors for late performance or late delivery.
  4. Contractors and architects involved in the design and supervision of any permanent structure are liable for defects for a period of 10 years.
  5. It’s best to win a job before opening an office in Egypt – David Skinner says it can be a difficult market to break into and firms should win work on a specific project first.
  6. You can ask your client for an advance payment of up to 20%.
  7. Employers must pay social insurance contribution to the Ministry of Social Insurance and Social Affairs on behalf of their Egyptian employees. Expat staff are not liable for social insurance.
  8. The most common form of contract is FIDIC.
  9. Business deals are usually sealed over a series of lunches and afternoon or evening teas, which can last up to four days.

    Learn more about working in Egypt in Work like an Egyptian: Egypt's construction opportunities.