What influenced the revival of Facility Management services in Egypt?

This whitepaper presents a detailed analysis of the factors that have contributed to the remarkable revival of Egypt's facility management industry in the post-pandemic era.
Leveraging insights from industry analysis, growth drivers, and emerging market opportunities, this research provides a comprehensive overview of the key references that have shaped the resurgence of the facility management sector in Egypt.
By exploring the strategies, trends, and innovations that have driven this transformation, this whitepaper aims to equip industry stakeholders with actionable knowledge to navigate the evolving landscape and unlock new avenues for growth in the Egyptian facility management market.

1. Egyptian Facility Management is currently growing steadily, bouncing back after the hiatus of Covid

EMERGING PHASE 2008

PHASE 1

• The concept of FM services evolved in the 80’s where companies began outsourcing both hard and soft facility services to vendors. This was followed by service integrations in the 90’s such as contract management and adoption of computer aided facility management.

GROWING PHASE 2016 – 2026F

PHASE 2

• Emergence of total facility management requirement in the country which includes energy management, IT services, Property management and outsourcing of government contracts in the form of Public private partnerships (PPP).

Key Influences

• The construction sector is a major contributor to GDP of the country , high growth rate of construction further boosted the demand for services
• Increased trend towards adopting sustainable practices have created further demand for FM service. It led to new complex types of services being added to service portfolio like Energy Management Systems

Highly fragmented market

Want to know more on FM market overview? Download our free sample report

2. The trend of integrating innovative technology such as BIM, ML, Smart Buildings, wearable technology, drones…

Technology	Description	Service Operations
Building Information Modeling (BIM)	BIM technology enables organizations to visualize specific components of a space, including structural elements It helps facilities managers make data-driven decisions about space utilization, energy consumption and redesigns which helps in provision of both soft and hard services.	Majorly in all the segments of hard services.
Machine Learning	Machine learning allows facilities managers to implement intelligent asset maintenance, a proactive approach to maintenance that is based on the actual utilization of the asset. It helps prevent unexpected equipment breakdowns through the dispatch of automatic updates to facilities managers when the system detects a potential issue. This comes handy in provision of hard services.	Majorly in all the segments of hard services.
Smart Building Technology	This technology uses automated processes and technology such as devices connected to the Internet of Things (IOT) and CFM (Cloud Based Facilities) System In this technology, data is consolidated into a single platform that facilities managers can easily access and use to identify opportunities to improve how the facility is run. This helps in various segments of both hard and soft services.	In housekeeping, security Landscaping and others.

Want to study the SWOT analysis of this sector? Download a free sample report

3. …and advanced HVAC technology has fuelled the resurgence of the Facility Management industry in Egypt

Technology	Description	Service Descriptions
Wearable Technology	Wearable Technology helps facilities managers improve the security of personnel and data by restricting access to a building or parts of a building to only certain individuals. Wearable devices also enable managers to collect data about employee work patterns, space occupancy and resource utilization. It helps in provision of both soft and hard services.	In housekeeping, security Landscaping and others.
Drones	Drones bring incredible opportunities for improved efficiency in facility management. The biggest opportunity for these unmanned aerial vehicles (UAVs) is in safety and automation Eliminating the need to have team members climb on facility roofs with a clip board and camera to document damage.	Majorly in all the segments of soft services.
Advanced HVAC Technology	The HVAC system is a particularly expensive system to use and maintain. Technology and the implementation of "Green" ideas have promoted the change of HVAC systems for the better. It helps in reducing facility management costs. These programs save facility managers money as they notify maintenance teams when systems are not operating effectively. This gives building operators the opportunity to prevent costly equipment failure by solving problems before they occur.	In Electromechanical Services

Interested in the seeing the competitive landscape of Egypt’s FM market? Download a free sample report

4. Moreover, Egypt Vision 2030,Tech advancement, and Increased Spending on Infrastructure and Sustainability are major growth influencers which will further revive the Egyptian Facility Management Market in future

Key Growth factors in Facility Management Market in Egypt

Technological Advancement

• Technologies such as IOT, Artificial intelligence, Building information modeling (BIM), cloud computing, biometric systems and motion detection are being implemented at service locations.
• Focus on indoor thermal comfort by improving air movement mechanisms in air conditioned and naturally ventilated buildings, which leads to increased productivity at workplaces.

Egypt Vision 2030

• In addition to transport projects, the government aims to rapidly expand tourism, education, and real estate, facility management market would experience considerable growth.
• Some of the major construction projects underway in this regard are The Electric Train Project, Monorail Project and Building More Commercial Ports

Sustainability

• There has been an increase in the awareness for green buildings and environmental services resulting from strong support from the regulatory bodies.
• Keeping in mind environmental issues, comfort and rising labor costs, assets are gradually becoming “smart”, enabling various components to interact with each other, in order to achieve the desired output.

Distinctive Strategic Location

• The strategic location of Egypt has contributed to making it a main hub between the global trade movements, as Egypt is considered the best choice to access the global markets in Europe, Middle East, Africa, and India. 
• Egypt has a distinguished location in the international logistics roads as well as Suez Canal, which is considered the most important navigational passage in the world linking the east with the west.

Want to discuss the potential challenges ahead in this industry’s ecosystem? Book a discovery call with our Consultants