The Egyptian government is navigating a path toward becoming a hub for high-value technology exports. This transformation is rooted in a comprehensive vision and technical readiness that adapts to global changes, leveraging the capabilities of local companies, fostering human resources, attracting foreign direct investments, and enhancing Egypt’s position in the global outsourcing landscape.
Recent Developments and Investments
Openings of international companies in Egypt underscore this promising trajectory. These companies operate in research and development, electronic design, software, and other critical areas, forming a cornerstone of the Ministry of Communications and Information Technology’s strategy to expand into foreign markets and systematically grow the industry. The aim is to increase digital exports, compete globally, and support digital transformation through sustainable foreign currency resources.
A notable development is the recent memorandum of understanding (MoU) Signed by the global company Connecta to establish a regional headquarters for generative AI in Egypt with an investment of approximately $100 million over three years. Deloitte also opened an innovation center with a $30 million investment, while U.S.-based Tech Company T-Tech and Concentrix announced expansions in Egypt, which is already Africa and the Middle East’s largest outsourcing center.
Ambitious Export Goals
Egypt aims to increase its digital and technology exports to $8 billion in the upcoming fiscal year, supported by 175 global companies employing over 145,000 professionals. This effort has led to a 54% growth in outsourcing exports over the past year, covering various fields from call centers to high-value services like electronic circuit design and embedded software in automobiles.
Ambitious Export Goals
Experts emphasize Egypt’s potential to become a regional destination for exporting high-value technologies, especially with strong political support and government incentives aimed at attracting global and local companies. They stress the need for a supportive environment that fosters innovation and attracts quality investments, while also ensuring a pool of qualified youth—a key competitive advantage for Egypt in semiconductor design and global market service.
Enhancing Innovation and Investment
According to the Ministry of Communications and Information Technology, more than 80 engineering research and development companies export high-value technology services from Egypt, employing tens of thousands of specialized engineers. Notably, Egypt has seen a 45% increase in electronic design centers since 2023, despite global challenges.
Key Requirements for Growth
Key requirements for accelerating the achievement of national goals and increasing high-value technology exports include a supportive environment with regulatory improvements, investments in technological infrastructure, and specialized training programs. Moreover, collaboration between universities and the private sector is essential to stimulate innovation.
Amr Talaat, Egypt Minister of Communications and Information Technology, highlighted the government’s organized efforts over the past seven years to build a comprehensive digital community, focusing on innovation, expansion, and attracting more investments.
He emphasized the importance of a qualified youth base as a competitive advantage for Egypt in semiconductor design and global market services.
The Role of Multinational Companies
With over 180 multinational companies operating outsourcing centers in Egypt, the ministry aims to train 500,000 trainees in the current fiscal year, aligning training with labor market demands. The government is committed to providing a supportive environment for attracting local and foreign investments in the electronics industry, establishing a research and development center in the New Administrative Capital, and launching Egypt’s first university specializing in communications and information technology.
According to Majed Mahmoud, Director of the Center of Excellence at Dell Technologies in Egypt, the country has solidified its position as a key destination for IT and business outsourcing, attracting many global companies to establish significant operational centers.
The success is attributed to sustainable investments in infrastructure and high-tech skill development.
To increase the number of engineering research and development companies, Mahmoud suggests creating a supportive environment that includes regulatory improvements, infrastructure investments, and specialized training programs. He also emphasizes the importance of producing thousands of qualified engineers through government skill development programs linked to global market needs.
Despite challenges, experts agree that Egypt has the potential to lead in high-value technology exports, particularly in embedded software for vehicles, AI, and cybersecurity. They stress the need for specialized centers like electronic design and data centers to enhance innovation and product development.
Mohamed Ezzam, an IT expert, highlights that enhancing Egypt’s capabilities to export high-value technology services requires unconventional steps, including significant investment in research and development.
He suggests focusing on specific technologies, like AI in agriculture, to establish a competitive niche.
Fostering a Competitive Edge
IT and cybersecurity expert Mohamed Elharty emphasizes Egypt’s strong capabilities in outsourcing, particularly due to favorable exchange rates that attract major companies to offer their services in Egypt.
He points out that Egypt’s advantages extend beyond traditional outsourcing to include digital products and advanced software development.
CEO of the leading outsourcing services provider ETISAL International Group Mohamed Eissa explains that Egypt’s current position in the outsourcing industry and the outcomes of the ongoing digital transformation place it in an ideal position to benefit from future outsourcing trends by leveraging its strengths.
He noted that the outsourcing services sector will significantly contribute to generating hard currency, particularly the US dollar, and create thousands of job opportunities, in addition to contributing billions of dollars to the country’s GDP.
Form his part, Ezzam calls for aligning university curricula with outsourcing market demands, proposing specialized academies to prepare young people for high-value outsourcing jobs. He notes that global outsourcing markets are worth about $540 billion, growing at 9% annually until 2026.
In summary, Egypt is positioned to capitalize on its strategic location, skilled workforce, competitive costs, and government support to become a leading global center for technology and business services. Continued investment in infrastructure and capacity building is crucial for achieving sustainable growth in high-value technology exports.
