Michael Salib

Abstract

There are numerous challenges and problems facing the construction industry in Egypt as a result of several economic influences and sovereign decisions, which are listed below: 1) The Central Bank of Egypt (CBE) increased the value of the US dollar against the Egyptian pound in the official market to reach USD/EGP 8.85 in March 14th, 2016. 2) Egypt’s parliament approved the value added tax (VAT) in September 8th, 2016. 3) The Egyptian Pound exchange rate liberalization in: November 3rd, 2016. 4) Hike in the value of projects' funding since November 3rd, 2016. 5) Fuel prices increased following the Central Bank of Egypt's decision to float the Egyptian Pound in November 4th, 2016. Many construction companies have shut down and left the market since 2016. The closure of these companies happened, as they did not acquire the experience and the managerial skills to deal with the economic hardship. They did not respond with the suitable techniques and strategies that will enable them to survive during this period of instability. This research identifies adequate strategies and techniques to be implemented by the first category contractors registered in the Egyptian Federation for Construction and Building Contractors that could enable them to survive during such economic conditions. The identification process is processed through two different methods. First, companies in other countries that have passed by similar conditions have been analyzed in order to identify the strategies and techniques they have used in order to survive. Second, interviews with experts in the Egyptian market have been conducted in order to identify the strategies implemented by their companies as a response to such economic instability. Furthermore, the strategies previously identified and applied in foreign markets are presented to those experts in order to study their applicability and efficiency if used in Egypt. A framework was developed in order to assist the construction companies in choosing the suitable techniques to their company size, through identifying the top ranked strategies and techniques that should be adopted by the company based on the parameters given to the framework. This framework has been verified by studying the financial statements of two companies, the first one has implemented almost all the top ranked strategies, and the other one has implemented only few strategies and techniques from the top tanked strategies. The figures concerning 2017 have been analyzed in respect to 2016, in order to visualize the effects of the strategies on the companies' financials. The framework has been also validated through experts' interviews. These experts have used and tested the framework and have rated through an interview its applicability and effectiveness. Furthermore, the experts have given few comments and recommendations in order to enhance the framework.

Department

Construction Engineering Department

Degree Name

MS in Construction Engineering

Graduation Date

6-1-2018

Submission Date

May 2018

First Advisor

Ezeldin, A. Samer

Committee Member 1

Waly, Ahmed

Extent

100 p.

Document Type

Master's Thesis

Rights

The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.

Institutional Review Board (IRB) Approval

Approval has been obtained for this item

Comments

This thesis would not have been possible without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study. First and foremost, I would like to express my deep appreciation and gratitude to my supervisors, Dr. A. Samer Ezz El-Din and Dr. A. Waly, for their guidance, understanding, patience, and continuous support throughout my graduate studies at AUC. Without their guidance and persistent help, this thesis would not have been possible. I would also like to thank the experts who were involved in the research conducted and the framework validation as it would have been impossible to find data to analyze without them. I would also like to express my deep gratitude to my family for the support they provided me through my entire life and in particular, I must acknowledge my parents for their continuous support, encouragement, love, and patience. Furthermore, a word of thanks to my wife, Marina, who has patiently stood by me and supported me all through my work. My appreciation of her love and support is beyond words. Finally, I would like to thank all my colleagues at work for their continuous support, patience and encouragement, in particular, Dr. Engy Serag and Eng. Marwa Gamal.

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