This document is containing the Egypt Infrastructure Report of Q4 2008 and the forecast for the next 5 years. The Ministry of State For Economic Development shows a tremendous surge in private and public investments in the economy in the past two years. The construction sector was in fact the third fastest growing after the hospitality sector and the investments in the Suez Canal. BMI expects to see increased privatization and investment activity in the Egyptian infrastructure sector during late 2008 and 2009. In BMI’s Q408 Egypt infrastructure Report, we forecast that Egypt’s domestic construction industry will grow by % in 2008, reaching a value of EPG24.99bn (US$4.58bn). In spite of a large number of reforms in recent years, which have undoubtedly improved the investment climate significantly, Egypt’s business environment continues to bear the legacy of years of state domination of the economy and a strong public sector focus. Egypt ranks 105th out of 180 states surveyed in Transparency International’s Corruption Perceptions Index 2007, comparing unfavorably with regional peers. The labor market is relatively inflexible, with Egypt performing markedly worse than the OECD average. Bureaucracy is a major issue for foreign companies, with legal and property transactions often subject to severe delays, and there is evidence of a public backlash against the pro-market reforms.