Belgium-based Daikin Europe, a wholly-owned subsidiary of Daikin Industries, has partnered with BPE Partners, a leading Egyptian private equity firm, to establish Daikin Air Conditioning Egypt.

The subsidiary is headquartered in Cairo, and kicked off operations during the current month, said a statement from the company.

Daikin established the Egyptian subsidiary, Daikin Egypt, based on a belief that Egypt’s growing economy remains the pillar of growth for both the Middle East and Africa, it said.  

With the development 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, Egypt is paving the way for large-scale urban development projects, it added.

By 2050, the current population of 18 million people in Greater Cairo is projected to climb to over 40 million. This automatically is coupled with investments in construction of office space, retail centres, and healthcare. Consequently, substantial growth is foreseen in the air conditioning market, said a statement.  

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, it stated.

Furthermore, with the gradual removal of the power subsidies in Egypt demand for high-efficiency, energy-saving products increased, it added.

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, it said.

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, it stated. – TradeArabia News Service