Risks Faced by Egyptian Contractors and How to Insure Them

 Risks Faced by Egyptian Contractors and How to Insure Them Blog Image
11 November 2023

The construction sector in Egypt is one of the most crucial industries, witnessing rapid growth in infrastructure and construction projects. However, Egyptian contractors are exposed to various risks and challenges that threaten the sustainability of their projects. In this article, we will examine the major risks that Egyptian contractors encounter and how to insure and protect their interests and projects.

 Risks Faced by Egyptian Contractors

1. Regulatory and Legal Challenges


Regulatory and legal challenges are one of the most significant risks facing Egyptian contractors. These challenges include complex permits and laws that must be complied with, which can lead to project delays and increased costs.


2. Economic Instability


The construction industry heavily relies on economic stability. Fluctuations in currency exchange rates and high inflation rates can significantly impact project costs and profitability.


3. Political and Security Issues


Given the geopolitical circumstances in the region, contractors must deal with the possibility of political and security disruptions that can affect their projects and the safety of their workers.


4. Skilled Labor Shortage


Finding skilled labor can be a major challenge, with many contractors facing a shortage of qualified workforce.


5. Infrastructure and Supply Chain Problems


Weak infrastructure and unstable supply chains can lead to project delays and increased costs.


How to Insure Egyptian Contractors


To deal with these risks and protect their interests, Egyptian contractors can take various steps:


1. Partner with Legal Experts


Working with professional lawyers and legal consultants can help contractors understand the laws and permits and ensure compliance.


2. Diversify Financing Strategies


Contractors should adopt diverse financing strategies, including investing in foreign currencies and risk management to deal with economic instability.


3. Insure Against Risks


Consider insuring projects against potential risks, including political, economic, and security risks.


4. Workforce Development


Invest in workforce development through training and vocational education to enhance skills.


5. Improve Supply Chain Management and Infrastructure


Enhance supply chain management and infrastructure to reduce project delays and increase efficiency.




Egyptian contractors face numerous risks and challenges in the construction and infrastructure sector. However, by effectively addressing these risks and taking appropriate measures, Egyptian contractors can maintain the sustainability of their projects and achieve success in this vital industry.


common questions

Risks to Egyptian contractors

The most important risks for Egyptian contractors include legal and regulatory changes that affect project implementation, high material and labor costs, in addition to intense competition, pressure on quality and safety, project financing, and changes in markets and bureaucracy.

The importance of insurance for Egyptian contractors

Insurance for Egyptian contractors plays a vital role in protecting them from financial and legal risks. Insurance helps cover costs resulting from unexpected incidents such as labor accidents or property damage. It also helps improve trust between the contractor and clients and ensures contractors adhere to security and quality guidelines and standards.