Construction in Tunisia - Key Trends & Opportunities to 2022

Synopsis

Construction activity in Tunisia was weak in 2017 due to a depressed economic environment, political instability, low oil prices and declining government reserves. Moreover, the depreciation of the Tunisian dinar against the US dollar also attributed to the decline. Limited business confidence and ongoing security issues therefore had a negative impact on the economy, including the construction industry; consequently, the construction industry contracted by 0.7% in 2017 in real terms.

Over the forecast period (2018-2022), the industry is expected to pick up pace supported by investments in public infrastructure, residential and renewable energy projects. Government flagship programs such as Tunisia 2020, the five-year development plan, and Renewable Energy Action Plan 2030 are expected to add momentum to the industry’s growth.

In addition, significant financial assistance from international organizations such as the World Bank and the European Investment Bank are expected to support the industry’s expansion over the forecast period.

The industry’s output value in real terms is expected to register a compound annual growth rate of 3.03% over the forecast period, compared to 0.15% during the review period.

Summary

Timetric’s Construction in Tunisia - Key Trends and Opportunities to 2022 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.

Scope

This report provides a comprehensive analysis of the construction industry in Tunisia. It provides:

• Historical (2013-2017) and forecast (2018-2022) 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 Timetric'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 Timetric's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Key Highlights

• Timetric expects the infrastructure construction market to retain its leading position over the forecast period, with 30.9% of the industry’s total value in 2022. Under the Infrastructure Development Pan for 2016-2020, the government plans to invest TND8.3 billion (US$3.9 billion) on the development of road infrastructure across the country.  
• Under the Tunisia 2020 national five-year development plan, the government plans to develop several large scale projects in the transport, tourism, energy and utilities, education, healthcare, communication, industrial and housing sectors until 2020. The program involves a total budget of TND127.8 billion (US$60.0 billion), of which TND53.3 billion (US$25.0 billion) will be provided by the government.
• The government’s focus on renewable energy infrastructure is expected to drive the growth of the energy and utilities construction market over the forecast period. Under the Renewable Energy Action Plan 2030, the government plans to install 1.0GW of renewable energy infrastructure during 2018-2020, and 1.3GW of renewable power plants during 2021-2030.
• Timetric expects the residential construction market output to record a forecast-period CAGR of 5.93% in nominal terms, driven by government plans to provide affordable housing. In January 2018, the government announced plans to provide TND170.0 million (US$64.3 million) in financial help to 250,000 families. In addition, under the social housing program, the government plans to build 6,000-10,000 social houses annually until 2020.
• The total construction project pipeline in Tunisia as tracked by the Construction Intelligence Center, including all mega projects with a value above US$25 million, stands at TND112.4 billion (US$46.4 billion). The pipeline, which includes all projects from pre-planning to execution, is heavily skewed to early stage projects, with 82.4% of the pipeline value is being in the pre-planning and planning stages as of April 2018.