Posted inCONSTRUCTION

New rules clear path for Egyptian contractors to join Saudi housing and utilities market

by enterpriseam adminSaudi Edition
Read Full Issue

Saudi Arabia launched new qualification rules for Egyptian contractors to bring in fresh expertise for a wave of construction and utility projects, Egyptian Federation for Construction and Building Contractors (EFCBC) board member Shams El-Din Youssef tells EnterpriseAM. The National Housing Company (NHC) has formally notified the EFCBC of the changes, Youssef said.

The new entry criteria: The updated rules target companies with no prior presence in Saudi Arabia but meet certain benchmarks. To qualify, firms must:

  • Be classified as first-tier contractors by the Egyptian Federation for Construction and Building Contractors;
  • Not be previously registered with Saudi Arabia’s Ministry of Investment;
  • Show at least EGP 90 mn in annual revenues over the past five years;
  • Have a minimum of 15 years’ experience.

Saudi Arabia is looking to tap Egyptian contractors for a SAR 200 bn pipeline of housing, utilities, and healthcare projects. Saudi officials met with Egyptian firms to build on earlier discussions with the NHC and to discuss sourcing expertise.

What KSA offers: EFCBC head Mohamed Sami Saad previously told us the federation sees the Kingdom as large, stable, and welcoming to Egyptian construction companies.

What’s next? So far, 25 Egyptian firms have made the cut and qualified for registration with the NHC. The next steps involve a series of virtual meetings to hash out the details. Meanwhile, the federation is working with Saudi authorities to reopen the qualification window soon and get even more Egyptian companies cleared to participate.

Why it matters: The new entry rules are a pragmatic response to address a capacity gap in the Kingdom’s construction sector. As homeownership surpasses 66% in 2025 toward a 70% target by 2030, housing needs are accelerating, with Riyadh alone expected to require over 305k new homes by 2034. Domestic contractors are already tied up with gigaprojects like Diriyah, prompting the NHC to open a faster track for Egyptian firms to help bridge the gap and deliver projects on schedule.

Tags: