How did Egypt’s cement industry fare in 2025 — and what’s next?

🏭 After years of struggling with oversupply, the Egyptian cement sector achieved exceptional performance in 2025 as the supply-demand gap closed for the first time since 2008. This shift manifested in surges in stock prices and bottom lines, according to industry experts speaking to EnterpriseAM. While 2025 was a year of price jumps and high returns, 2026 is expected to be the year of operational efficiency and “green competition,” where survival isn’t necessarily for the fittest — it’s for those able to cut costs and manage carbon emissions.

Domestic demand witnessed a boom as consumption of 13-14% to 54 mn tons, according to market data seen by EnterpriseAM. The leap was driven by regular construction activity and exchange rate stability, division head at the Egyptian Chamber of Building Material Industries Hassan Gabry told EnterpriseAM. Simultaneously, a qualitative shift occurred in exports — while clinker exports fell by 38%, exports of finished cement surged by 47.4% to 11.1 mn tons.

The sector’s stocks were a dark horse on the EGX last year, with some companies achieving growth exceeding 600% as factory utilization rates hit 98%, Al Ahly Pharos head of research Hany Genena said at a seminar attended by EnterpriseAM.

The secret behind this appetite lies in pricing power, as prices rose 80-85% above the 2024 average. This allowed companies to not only cover high energy costs, but also achieve attractive NP margins. Case in point: Arabian Cement is expected to maintain an average NP margin of 22% until 2030, making the sector an enticing target for acquisitions rather than for the risky option of building new plants, industrial sector analyst at HC Securities Nesreen Mamdouh told us.

Following the cancellation of production quotas, companies are studying the revitalization of seven to nine production lines, potentially adding 12.6 mn tons to the market starting 2H 2026. Now, green transitions are no longer optional as environmental shifts prove less a luxury and more a necessity for exporting and cost reduction.

Arabian Cement’s strategy focuses on reducing coal dependency through a hydrogen injection project and increasing alternative fuels, with the aim of cutting emissions by 120k tons annually. This could grant them a price premium of EUR 5.4 per ton when exporting to Europe under the Carbon Border Adjustment Mechanism (CBAM), according to an HC report seen by EnterpriseAM. Similarly, Titan Egypt plans to invest EGP 3 bn to support its green transition, including a decision to halt clinker exports entirely to limit emissions and focus instead on green cement exports, according to CEO Amr Reda.

In a proactive move, the Ministerial Group for Industrial Development approved the offering of three new cement production licenses, which may help secure local market needs and meet potential reconstruction demands in Gaza.

Looking ahead, forecasts for demand growth in 2026 vary, but most experts agree on stability and the return of competition. Mamdouh expects modest domestic demand growth of just 1% in 2026, while Gabry is more optimistic, with projections between 5% and 8%. Prices are likely to see a slight decline to settle around EGP 3.6k per ton due to improved cost dynamics and increased supply, Gabry notes, ruling out any sharp price spikes.

Despite positive outlooks, several logistical and legislative hurdles remain — the lack of bulk terminals being one. This prevents Egypt from competing with countries like Vietnam and Turkey in serving distant markets like the US and West Africa. Our own ports currently lack specialized terminals for exporting bulk cement capable of loading 45k-ton vessels, according to Reda, who further noted that the current reliance on traditional trucks and cranes raises costs and reduces competitiveness, with Vietnamese products priced at USD 32 per ton compared to Egypt’s USD 50.

That said, studies are underway for new terminals at Dekheila and Sokhna ports at an estimated cost of USD 20-25 mn each. Additionally, cement plants are calling for quarry lease terms to be extended to 10 years instead of the current one to three years to ensure stable production. Furthermore, Sky Ports has earmarked USD 50 mn for a cement silo project in East Port Said, with silos — currently being manufactured in Denmark and Spain — expected to arrive by late 2027.