Top 10 furniture manufacturers in Egypt
© Nadim Group
The Egyptian furniture industry, with its rich history and significant contribution to the national economy, is currently navigating a challenging landscape. We are highlighting the current state, challenges, and potential strategies for sustaining and enhancing the industry's growth.
Current State of the Egyptian Furniture Industry
Industry Size and Contribution: Egypt's furniture sector includes approximately 140,000 factories and workshops, employing around 900,000 workers directly and indirectly. The sector contributes significantly to the national economy, with a notable impact on GDP and job creation.
Export Dynamics: There has been an 8% year-on-year decline in furniture exports in the first half of 2023, with major markets including Saudi Arabia, the UAE, Iraq, and the USA.
Challenges Facing the Industry
High Production Costs and Material Shortages: The ongoing foreign exchange crisis has led to increased production costs and shortages in raw materials, impacting export volumes.
Pricing Dilemmas: Fluctuations in raw material prices have made pricing products for business and hotel markets particularly challenging, often leading to uncompetitive pricing or losses.
Informal Economy: A significant portion of the industry operates in the informal economy, with only 20% of businesses formally registered. This limits their access to formal support mechanisms and hinders sector-wide growth.
Government Support and Industry Initiatives: Despite proposals like establishing new furniture cities, effective government support and implementation of initiatives have been lacking, as exemplified by the challenges in developing Damietta Furniture City.
Current State of the Egyptian Furniture Industry
Industry Size and Contribution: Egypt's furniture sector includes approximately 140,000 factories and workshops, employing around 900,000 workers directly and indirectly. The sector contributes significantly to the national economy, with a notable impact on GDP and job creation.
Export Dynamics: There has been an 8% year-on-year decline in furniture exports in the first half of 2023, with major markets including Saudi Arabia, the UAE, Iraq, and the USA.
Challenges Facing the Industry
High Production Costs and Material Shortages: The ongoing foreign exchange crisis has led to increased production costs and shortages in raw materials, impacting export volumes.
Pricing Dilemmas: Fluctuations in raw material prices have made pricing products for business and hotel markets particularly challenging, often leading to uncompetitive pricing or losses.
Informal Economy: A significant portion of the industry operates in the informal economy, with only 20% of businesses formally registered. This limits their access to formal support mechanisms and hinders sector-wide growth.
Government Support and Industry Initiatives: Despite proposals like establishing new furniture cities, effective government support and implementation of initiatives have been lacking, as exemplified by the challenges in developing Damietta Furniture City.
| Company | Founded | Company description |
|---|---|---|
| 1974 | Mohm is a leading Office Furniture manufacturing company in Egypt and Middle East. | |
| 2012 | The leading company in Home Furniture industry with more than 30 branches in Egypt and 3 branches in UAE | |
| 2004 | Austrian - Egyptian venture established in Austria in 1952. We are specialized in modern furniture for residential & hospitality business. | |
| 1980 | MFFCO has a top place in the Egyptian market by guarantee first class products and a perfect after sales service. | |
| 2010 | An Egyptian company for home modern furniture that offers various unique collections. | |
| 2017 | Hub Furniture is partnering up with with top furniture brands in egypt to provide a special collection of designs suiting every taste. | |
| 1987 | We have for different production lines: 1- Geneena Garden 2- Alamein Fun time 3- Nile Class Sailing boats 4- Caravanserai for indoor furniture | |
| 1981 | The company designs and manufactures kitchens since 1980. | |
| 1978 | Producer of wood furniture, parquet, contract work, restoration of historic monuments and artifacts. | |
| 2007 | T&D Design, part of FF&D consortium, offers top-notch services to clients in Egypt, the Middle East, and the Gulf region for 11 years | |
| 1979 | Mobica is a global software services company. |
Strategies for Industry Flourishment
Incentive Packages: Tailored incentives are needed to address challenges in securing raw materials, financial support, and boosting exports. Participation in international exhibitions should also be incentivized.
Sector-Oriented Funding Programs: Small-sized factories and workshops need access to funding for acquiring modern production technologies and business expansion.
Tax Exemptions and Formalization: Encouraging informal businesses to formalize through tax exemptions could enable their participation in industry development and expos.
International Exhibition Participation: Supporting Egyptian manufacturers in participating in international exhibitions is crucial for expanding export markets, particularly for high-quality handcrafted furniture.
Leveraging Free Trade Agreements: Utilizing incentives like the African Continental Free Trade Agreement can open up new export opportunities, particularly in Africa.
Providing Industrial Land: Allocating land to manufacturers at reasonable costs can help expand the sector.
Innovative Material Sourcing: Exploring alternative materials like wood boards from recycled sorghum stalks and rice straws, and expanding local tree planting using treated wastewater, can help meet local wood demands.
Government Reforms and Measures: Accelerating government actions to address soaring costs and integrating informal sector businesses into the formal economy without overburdening them with taxes can enhance global market competitiveness.
Exploiting Foreign Exchange (FX) Measures: The recent easing of FX regulations, including exemptions from land fees and streamlined processes for securing letters of credit, can aid in material imports and industry revival.
Egypt has immense potential for growth and innovation
The Egyptian furniture industry stands at a crossroads, facing significant challenges yet possessing immense potential for growth and innovation. By implementing targeted strategies, such as incentive packages, sector-oriented funding, and government reforms, the industry can overcome its current hurdles.
Embracing innovative approaches in material sourcing and strengthening participation in international markets are key to sustaining and enhancing the industry's prosperity. With appropriate support and adaptation, the Egyptian furniture industry can continue to be a significant contributor to the national economy and a flagbearer of Egyptian craftsmanship on the global stage.
Disclaimer
This compilation of the companies has been made to the best of our knowledge and belief. We have made every effort to obtain the information from reliable and up-to-date sources and to reproduce it as accurately as possible. Nevertheless, we cannot guarantee the accuracy and completeness of the information. We are grateful for additions and corrections, which you are welcome to send to sales@egypt-business.com. The selection of companies is based on the number of employees, the revenue, and the number of online visitors.
Incentive Packages: Tailored incentives are needed to address challenges in securing raw materials, financial support, and boosting exports. Participation in international exhibitions should also be incentivized.
Sector-Oriented Funding Programs: Small-sized factories and workshops need access to funding for acquiring modern production technologies and business expansion.
Tax Exemptions and Formalization: Encouraging informal businesses to formalize through tax exemptions could enable their participation in industry development and expos.
International Exhibition Participation: Supporting Egyptian manufacturers in participating in international exhibitions is crucial for expanding export markets, particularly for high-quality handcrafted furniture.
Leveraging Free Trade Agreements: Utilizing incentives like the African Continental Free Trade Agreement can open up new export opportunities, particularly in Africa.
Providing Industrial Land: Allocating land to manufacturers at reasonable costs can help expand the sector.
Innovative Material Sourcing: Exploring alternative materials like wood boards from recycled sorghum stalks and rice straws, and expanding local tree planting using treated wastewater, can help meet local wood demands.
Government Reforms and Measures: Accelerating government actions to address soaring costs and integrating informal sector businesses into the formal economy without overburdening them with taxes can enhance global market competitiveness.
Exploiting Foreign Exchange (FX) Measures: The recent easing of FX regulations, including exemptions from land fees and streamlined processes for securing letters of credit, can aid in material imports and industry revival.
Egypt has immense potential for growth and innovation
The Egyptian furniture industry stands at a crossroads, facing significant challenges yet possessing immense potential for growth and innovation. By implementing targeted strategies, such as incentive packages, sector-oriented funding, and government reforms, the industry can overcome its current hurdles.
Embracing innovative approaches in material sourcing and strengthening participation in international markets are key to sustaining and enhancing the industry's prosperity. With appropriate support and adaptation, the Egyptian furniture industry can continue to be a significant contributor to the national economy and a flagbearer of Egyptian craftsmanship on the global stage.
Disclaimer
This compilation of the companies has been made to the best of our knowledge and belief. We have made every effort to obtain the information from reliable and up-to-date sources and to reproduce it as accurately as possible. Nevertheless, we cannot guarantee the accuracy and completeness of the information. We are grateful for additions and corrections, which you are welcome to send to sales@egypt-business.com. The selection of companies is based on the number of employees, the revenue, and the number of online visitors.