Egypt’s cement industry is gaining renewed strength as the government increases its support for the sector in line with national plans to boost exports to USD 150 bn. Demand is rising and production and export activity are expanding while authorities continue to work on resolving challenges facing manufacturers and introducing new incentives to strengthen competitiveness in regional and international construction markets, according to sector officials.
Growth Driven by Major National Projects and Improved Economic Conditions
The local market is showing indicators of sustained growth supported by large national projects such as Ras El Hekma and New Alamein. The reinstatement of the 2008 building law is expected to stimulate private construction activity and contribute to higher demand. Stable exchange rates have helped restore confidence among developers and contractors who have resumed activity after a period of slowdown.
Export Activity Strengthens
The industry is also witnessing growing demand from regional reconstruction markets as well as European African and US markets. Sector representatives confirm coordination with government bodies to develop plans that meet the increase in international demand while preserving market stability at home.
Production and Sales Continue to Rise in 2025
Production rose 20.3 percent year on year during the first eight months of 2025, reaching about 42 million tons. Local sales increased 13.3 percent year on year in the same period, reaching 34 million tons. Expectations indicate that domestic demand will surpass last year’s level of 47 million tons, reflecting continued recovery in the construction sector and supporting further expansion and export plans.
Exports increased by 2.2 percent year on year during the first eight months of the year, reaching 13.9 million tons, although export revenues declined by 7 percent to USD 581 million according to official data.
Government Incentives to Increase Domestic Supply
The government recently introduced incentives for manufacturers that increase supply to the local market. Factories that boost production directed to domestic consumption are eligible for reduced fees related to modifying production capacities in operating licenses. These measures aim to encourage higher output levels and create a surplus that supports market stability.
This follows directives issued earlier requiring factories to restart idle production lines after the quota system was removed in May. Officials say the industry is moving toward a more balanced supply environment driven by these interventions.
New Production Licenses on the Way
Two new production licenses are expected to be issued before the end of the year to expand industry capacity and support demand. Each license is expected to add a production line with a capacity ranging between 1.5 and 2 million tons annually. Forecasts suggest domestic consumption could reach 52 million tons by year end compared to 47 million tons in 2024. Analysts note that acquiring existing facilities remains the most economically efficient expansion option for current operators.
Outlook for 2026
Total demand, including exports, is projected to reach around 68 million tons in 2026. Market expectations suggest that local demand growth will ease from the strong levels recorded in 2025 and move toward mid single digit growth as shipment levels approach historical highs.
