The Egyptian economy, and the status of construction and contracting companies: -

All economic sectors have been affected by the repercussions of the closure imposed by the Corona pandemic and decisions and procedures have contributed to increasing pressures on the construction sector, the latest of which is the decision to stop licenses and
construction work for a period of 6 months in all governorates of Egypt. This decision exacerbated the construction and contracting companies' crises.

Eng. Shams El-Din Youssef, a member of the Board of Directors of the Egyptian Federation of Construction and Building Contractors, a member of the Compensation Committee, and Chairman of the Board of Directors of Al Shams Contracting Company.

He believes that the law gives the state the right to review all licenses and apply the law to violators in the implementation work and the law allows the state to implement this without need. To take the decision to suspend licenses, which affected many contracting companies in the governorates for contracting to supply raw materials and building materials, in addition to that the decision contributed to laying off a large number of workers and increasing the number of unemployment in difficult circumstances that everyone is going through.

In spite of this, a large proportion of construction and contracting companies affiliated with the New Urban Communities and Cities Authority and mega-projects such as the New Administrative Capital, the New Alamein City, and a number of fourth-generation cities are not subject to this decision and have not been affected by the suspension of building licenses.

In May 2020, the Central Bank included the construction and contracting sector for the
industrial and agricultural private sector initiative, in order to help reduce the burden on
contracting companies, provide the necessary liquidity to complete their projects, as well as
increase the employment rate in the sector.
Central Bank Initiative Text: -

The Central Bank issued a decision to include contracting companies whose turnover and annual revenues reach 50 million pounds or more for the initiative that states: 

Availability of 100 billion pounds through banks with an annual 8% diminishing return to finance industrial companies and companies operating in the agricultural field on a regular basis and the aim of including the construction and contracting sector for the initiative is to reduce the financial burdens borne by contracting companies and in order to help provide the necessary liquidity to complete projects. As well as encouraging companies to participate.

in the initiative, to reflect positively on the entire contracting sector.

Construction and contracting companies ’opinion on the Central Bank’s initiative: -

 The opinions of officials of local contracting companies differed regarding their benefit from the Central Bank's decision to include them in the initiative.

● Some believe that they were able to benefit and obtain financing to complete their
projects that were disrupted due to the Corona pandemic on the one hand, and their
delayed financial dues with government agencies on the other hand.

● While others believe that the conditions imposed by the Central Bank are incapable
of contracting for new projects.

Many senior economic officials in Egypt see the construction sector as the locomotive of the economy and it has great importance in circulating cash liquidity in many other sectors. 

Structuring the conditions of construction and contracting companies: -

The Egyptian state has tended to structure the conditions of contracting companies, especially the small companies that represent the vast majority in the Egyptian Federation of Construction and Building Contractors, and they are the main public on which it relies on the implementation of many projects.

The conditions of the profession are gradually being structured, the efficiency of the entities working in it is raised, and classification mechanisms have been introduced in front of construction and contracting companies so that each seeks to possess a strong technical,

administrative and financial apparatus suitable for promotion, raising its degree to a higher category, and entering into larger work, and adding new specializations in the sector helped. With the development plans for the real estate market to create new opportunities for work in
the country for contracting companies in various fields, including:

• Building maintenance work.
• Maintenance and renovation of roads.
• Maintenance and renovation of facilities.

This small contractor contributed to working strongly despite the difficult situation in recent times. It also contributed to supporting the preservation of the state's real estate wealth and economic growth. And the last thing that was done to improve the level of work and open the way for the
construction and contracting sector in Egypt held 

ref: almal news

for more news about construction; industrial world:constguide news

constguide :-

It covers also construction news, tenders, the Encyclopedia, magazine, and jobs Required in the field of construction in the Middle East and Africa. The platform offers a search engine for companies involved in construction activities including Clients, consultants, contractors, sub-contractors, developers, suppliers, and Tenders.