Summary

Tunisia's construction industry recovered in 2018, and registered a growth rate of 1.0% in real terms, following a contraction of 1.8% in 2017. This recovery was driven by positive developments in economic conditions, revival in investor confidence and investments in transport infrastructure, energy and housing. Expansion in the tourism and manufacturing sectors also supported the industry's growth. Aid from financial institutions also helped in improving the investment climate; in 2017 and 2018, World Bank provided two loans, each worth TND1.3 billion (US$500.0 million), which supported the housing development and funding towards developmental projects in the country.

The industry is expected to continue to expand over the forecast period (2019-2023), driven by the government’s efforts to enhance industrial and energy and utilities infrastructure. In addition, the government’s aim to improve the transport network is expected to support investments in infrastructure projects, which will in turn fuel growth in the industry. Efforts to attract foreign investments through the public private partnerships (PPP) model will also support the construction industry output over the forecast period. In April 2018, the government signed an agreement worth TND4.2 billion (US$1.6 billion) with Islamic Development Bank to support the development of electricity transmission projects, hospitals construction and enhancing trade activities in the country during the period of 2018-2020.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 3.36% over the forecast period, compared to -0.74% during the review period (2014-2018).

GlobalData’s "Construction in Tunisia - Key Trends and Opportunities to 2023", report provides detailed market analysis, information and insights into the Tunisian construction industry, including -
- The Tunisian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Tunisian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

- Infrastructure construction was the largest market in the construction industry during the review period, accounting for 30.1% of the industry’s total value in 2018. The market is expected to follow a similar trend over the forecast period, and is expected to account for 30.9% of the industry’s total value in 2023. Forecast-period market growth will be supported by the government's investment in road and rail infrastructure projects. Investments in rail development in Tunis and Sfax are expected to drive the infrastructure construction market.
- GlobalData expects the residential construction market to register a forecast-period CAGR of 7.20% in nominal terms, driven by government plans to provide affordable housing through the first housing programme. Under this program, the government is providing financial help to the middle- and low-class people to purchase houses..
- In May 2018, the World Bank approved a loan of TND254.9 million (US$100.0 million) to support the development of primary education in the country; it aims to enhance access to preschools and the development of overall school infrastructure. Furthermore, in January 2019, the government signed an agreement with the International Bank for Reconstruction and Development with reference for a loan of TND254.5 million (US$92.0 million) to improve the condition of primary schools in the 12 provinces of the country. This is expected to drive forecast period growth of institutional construction market.
- GlobalData expects the energy and utilities construction market to register a forecast-period CAGR of 7.43% in nominal terms. Growth over the forecast period is expected to be driven by government investment in water and drainage infrastructure coupled with development of oil and renewable energy projects. The government aims to expand the crude oil production in the country by 9.5%, from an estimated 1.9 million tons in 2018 to 2.1 million tons in 2019. .
- The total construction project pipeline in Tunisia - as tracked by GlobalData, and including all mega projects with a value above US$25 - million stands at TND46.6 billion (US$18.3 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 61.1% of the pipeline value being in projects in the pre-execution and execution stages as of March 2019.

Scope

- This report provides a comprehensive analysis of the construction industry in Tunisia.
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Tunisia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to buy

- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.