What are the Threats that hinder the investments in the Construction sector in the Egyptian Sector, Although it considered one of the largest markets in Egypt? and How many Small and medium sized companies (in the construction Sector) contributes in the Egyptian Market? Especially the Architecture consulting Firms?
The same as most of the Mideast: political instability, unpredictable escalation of material costs, and the potential for corruption. I lived and worked in the Middle East for over 4 years and most non-Middle eastern companies must see a very high premium in project pro forma or they don't invest.
Lately, the political instability have been one of the most hindering factors for investment in Egypt. However, even 8-10 years ago, the price fluctuation in construction material (e.g. Reinforcement) stemming from market monopolies and the absence of market competitors have been also a major obstacle in the construction industry. Finally, the major planning indecisiveness of where and when developments should be located (especially in big cities like Cairo & Alexandria) can also represent a great threat for investing in certain locations with an uncertain developing future.
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