“Iconic” Opportunities

A closer look at Egypt’s construction boom and what it means for VT companies

Egypt’s construction industry has defied the debilitating effects of COVID-19 to sustain ongoing government-sponsored megaprojects — notably, 14 new fourth-generation cities expected to host 14 million people. Also taking shape is the multibillion-dollar New Administrative Capital (NAC), 45 km east of the political capital of Cairo.

The expanding construction sector — driven primarily by a growing Egyptian population that is now estimated at 102 million and a desire to decongest the capital city of Cairo — is a boon for the vertical-transportation (VT) industry. International contractors, especially from China and Europe, are supplying materials, services and equipment (including VT) for the new cities. Construction of the NAC, however, is contributing the most to the growth of Egypt’s VT market as key elevator and escalator suppliers land contracts for the design, manufacture, supply and installation of equipment in emerging skyscrapers. NAC’s development is being spearheaded by the Administrative Capital for Urban Development, a state entity formed through a partnership of the New Urban Communities Authority, the National Service Projects Authority and the Armed Forces Projects Authority, with total capitalization of EGP204 billion (US$12.9 billion).

At least 20 skyscrapers covering 1.9 million m² are at different levels of development by various international and local contractors in NAC’s CBD. The largest share of contracts has been awarded to Chinese contractor China State Construction Engineering Corp. (CSCEC). Thanks to NAC contracting opportunities, Egypt is entering a stage that prioritizes skyscrapers, says Mahmoud Taher, board member of the Egyptian Federation for Construction and Building Contractors. “We expect that 2022 will be a year of massive construction activity and real estate investment, as many government offices and employees move to NAC,” he observes.

Among the skyscrapers CSCEC is constructing is the 385-m-tall Iconic Tower, currently billed as Africa’s tallest building and located within NAC’s CBD. Chinese banks had earlier expressed interest in providing up to 85% of the US$3 billion needed to finance Iconic Tower, designed by architect Dar Al-Handasah. The balance of the needed funds was expected to come from Egypt’s Ministry of Housing, Utilities and Urban Communities.

At Iconic Tower, expected to be complete in December, KONE is the main contractor for the design, supply, installation and maintenance of 60 custom-made elevators and escalators, all with finishes specially designed for the building. KONE Regional Marketing and Business Intelligence Manager for the Middle East & Africa Lamia Moussa says the OEM is supplying elevators with different speeds depending on travel height and floors served. “The maximum speed available will be for the VIP elevators that will serve the observation deck at the top of the tower, with travel of 365 m and speed of 7 m/s,” she says. 

Iconic Tower escalators will travel at the standard, 0.5 m/s speed. Service lifts in the hotel portion of the tower will have the maximum number of stops: 84. 

Like many VT markets in Africa, Egypt has embraced British/European BS EN 81-20 and -70 standards for elevators, including those for persons with disabilities. Egypt also uses the EN 81-72 standard for firefighter lifts and EN 81-77 for lifts subject to seismic conditions. For escalators and moving walks, Egypt has approved the EN-115 British/European standard that was given the nod by the European Commission and the European Free Trade Association, becoming a national standard in early 2018 to replace EN 115-1:2008+A1:2010: Safety of Escalators and Moving Walks — Part 1: Construction and Installation.

KONE solutions for Iconic Tower’s VT system include:

• 36 MiniSpace™ elevators
• 13 MonoSpace® elevators
• Seven TranSys™ freight elevators
• Four TransitMaster™ 120 escalators.

Although Egypt has ramped up its electricity generation and supply for powering operations, including movement of elevators and escalators, Moussa says all the KONE VT systems have an Uninterruptible Power Supply (UPS) option to provide battery backup power when the flow of electricity drops to an inadequate voltage or stops altogether. KONE engineers worked with the main contractor to integrate all elevator and escalator electrical power requirements into the design, Moussa says. 

Aesthetics and Control

All landing doors have customized stainless steel cladding, but elevator aesthetics vary depending on location, she says.

Doors of office zone lifts are dark gray to impart a neat, professional look. Hotel lift doors, however, have a golden finish with a palm tree pattern that complements the architecture and interior design, Moussa observes. 

KONE is supplying Iconic Tower’s elevators with a control system that, unlike those of conventional elevators, takes into account desired destination floors and number of waiting passengers to significantly improve efficiency and convenience, Moussa says. 

“The elevators are called using destination operating panels in the lobby, and there are no operating panels in the elevator cars,” Moussa explains. She lauds KONE’s destination control system, saying it has “the best performance and passenger convenience in one solution, enabled by the most advanced and flexible technology on the market.”

The system, she observes, provides “clear guidance with no unnecessary stops, and results in less-crowded elevators by assigning people an elevator according to their destination floor.” Moreover, Moussa says the KONE destination control system to be installed at the Iconic Tower is “attractive, with user-friendly operating panels, including new touchscreens and mobile applications for smartphones.”

Beyond Iconic 

Elsewhere, Egypt anticipates completion of at least five tall buildings within the NAC CBD in 2022 under a contract by CSCEC, including towers C04, C11, C12, C07 and C08 that are rising to 170 m, 160 m, 160 m, 155 m and 155 m, respectively.

According to Ahmed Zaki Abdeen, chairman of the Administrative Capital for Urban Development, Egypt seeks to construct cities distinguished by not only tall, sophisticated towers but “living [cities], that have the ability to align with science and ecology paradigms.”

Currently, the skyline of Egypt’s capital Cairo is dominated by at least 14 tall buildings that rise above 131 m, including that of the Ministry of Foreign Affairs, which is 143 m tall with 39 floors. Other tall buildings include:

• El Gazira Tower Movenpick Hotel (142 m)
• Grand Nile Tower (142 m)
• Nile City South and North Towers (142 m each)
• El Maadi Residential Towers 13 to 17 (all with 42 floors and rising to 140 m)

As Egypt continues to emphasize infrastructure and construction as the key driver of its urban growth, more tall buildings are expected to meet the demands of a growing population and decongest major cities, hence ensuring sustainable VT market growth in Egypt in the medium to long term.

Lingering Challenges

However, Egypt’s VT industry must address lingering challenges constricting its growth, such as circulation of substandard spare parts, inability of authorities to register all tall buildings and weaknesses in the maintenance and supervision of elevators, escalators and moving walks.

Nevertheless, the government’s backing of public and private investment in Egypt’s urban infrastructure development and the country’s prime location on the Red and Mediterranean seas is expected to attract more global VT industry players to this fast-growing North Africa market.

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