Egypt Facility Management Market Size

Egypt Facility Management Market Analysis

The Egypt Facility Management Market size is estimated at USD 2.25 billion in 2024, and is expected to reach USD 3.06 billion by 2029, growing at a CAGR of 6.33% during the forecast period (2024-2029).

The growth is majorly attributed to the infrastructural development in the country, along with the ever-increasing awareness among the people.

• The demand for integrated facility services increased due to the accelerated development of residential, commercial, and industrial buildings and the increase in foreign direct investment. Additionally, a changing economy that necessitates significant infrastructure development contributes to the increased demand for facilities management services.
• Shopping malls are associated with the lifestyle of large cities. These malls contain many retail stores and outlets that provide a variety of goods and services, including clothing, food, beverages, gadgets, and everything else consumers require. These malls see hundreds of customers each week looking to buy something. Thus, it becomes crucial to provide efficient mall maintenance to give customers a pleasant shopping experience.
• Business services such as corporate offices of manufacturers, IT and communication companies, and other service providers are included in the commercial end-user sector. Commercial investments frequently offer better returns on investment and show more considerable cash flow potential. Commercial buildings are a lucrative market with appealing investment opportunities, which would drive the expansion of the facility management market over the forecast period.
• Even though outsourced FM has considerable revenue potential, the country's services are becoming more commoditized. FM services have become commodities, which compels vendors to innovate to sustain margins and growth. Additionally, as end-user sectors are highly price-sensitive, contracts are designed to be shorter in duration.
• Due to the COVID-19, the Egyptian facility management market witnessed sluggish growth during 2020 and at the beginning of 2021. During the initial phase of the pandemic, the imposed lockdowns led to a workforce shortage across the FM companies as the majority were non-local workforce. The demand for soft FM services increased, particularly in public areas. This caused a significant increase in the workload and revenues of soft FM providers. Additionally, after a brief pause caused by the COVID-19 pandemic, the industry is expected to rise by 9% on average between 2020 and 2024. The Egyptian building industry is considered the healthiest option for Egyptians to invest in.