Daikin open Egyptian subsidiary
EGYPT – Daikin Europe N.V., a Daikin subsidiary whose headquarters are located in Ostend in Belgium, has announced a partnership with BPE Partners S.A.E., a leading Egyptian private equity firm, to establish Daikin Airconditioning Egypt S.A.E. The new Egyptian entity has its headquarters in Cairo and Daikin Egypt opened its doors and began operations in August 2016.
Daikin revealed that they had taken the decision to establish their Egyptian subsidiary based on their belief that Egypt’s growing economy represents a fundamental pillar of growth for both the Middle East and Africa. Egypt is seen as fertile land for expansion as the country is paving the way for large-scale urban development projects via the development of mega projects and cities such as the New Capital City, the New Suez Canal Development Area, and the expansion of Cairo on the East and West borders. The most recent population estimates for the country reveal that, by 2050, the current population of 18 million people in Greater Cairo is projected to climb to over 40 million. This population expansion, coupled with investments in construction of office space, retail centres and healthcare means that substantial growth is foreseen in the air conditioning market.
To implement these large-scale projects, the Egyptian government has created an environment that expands the role of foreign companies by actively seeking investment from foreign companies. Furthermore, with the gradual removal of the power subsidies in Egypt, demand for high-efficiency, energy-saving products increased.
In establishing a subsidiary in Egypt, Daikin is laying the groundwork for business development that aggressively competes for large-scale projects by leveraging the local knowledge and investment expertise of BPE Partners and collaborating with the Daikin Middle East Office in Dubai. With energy-saving products ranging from residential to commercial use, Daikin is poised to substantially expand business in Egypt. The success it achieves in the Egyptian market will be used as a springboard to future development in the Middle East and Africa.