Daikin Europe has announced its partnership with private equity firm BPE Partners to establish Daikin Air Conditioning Egypt (Daikin Egypt) in Cairo, with a total investment of EGP 47m.
Hazem Barakat, co-founder, chief executive officer, and chairperson at BPE Partners explains that the main drive for the establishment of Daikin Egypt was the belief that Egypt’s growing economy remains the pillar of growth for both the Middle East and Africa.
In addition to the development of mega projects and cities such as the New Administrative Capital, the Suez Canal Area Development Project, and the ongoing expansion on the east and west borders of Greater Cairo, Egypt is paving the way for large-scale urban development projects.
“Egypt represents a good opportunity as a result of the construction of new cities, such as the New Administrative Capital and the expansion of New Cairo and 6th of October City, which in turn will increase the market demand for air condition units,” said Sugahara Shirou, CEO of Daikin Egypt. The population of Greater Cairo is projected to reach over 40 million by 2050, compared to the current population of 18 million.
Such growth will in turn be coupled with increased investments in the construction of office spaces, retail centres, and healthcare facilities.
Consequently, substantial growth is foreseen in the air conditioning market. With the gradual removal of energy subsidies in Egypt, the demand for high-efficiency, energy-saving products has increased. The press release states that the Egyptian government has created an environment that increases the role of foreign companies by actively seeking investment from them.
Daikin is poised to substantially expand business in Egypt, and believes that the success in the Egyptian market will be the cornerstone to future development in the Middle East and Africa.