The Information Technology Industry Development Agency (ITIDA), the executive IT arm of Egypt's MCIT and a one-stop shop for foreign investors in the IT and business services sectors, has entered into a Memorandum of Understanding (MoU) with Siemens Digital Industries Software, a global leader in digital transformation solutions.
The MoU is geared towards forging a strategic partnership between both parties to expand Siemens research and development operations in Egypt, develop local talent and foster technology innovation.
The signing ceremony of the MoU, graced by the presence of His Excellency the Prime Minister of Egypt, Dr. Mostafa Madbouly, and the Minister of Communications and Information Technology, Dr. Amr Talaat, underscores the government's unwavering support for the IT sector and highlights a shared commitment to advancing technology and catalyzing economic development in Egypt.
Under the MoU agreement, Siemens Digital Industries Software receives support from ITIDA in expanding its operations in Egypt, particularly in the areas of engineering, research and development (ER&D), and electronics design. The agreement also encourages collaborative activities in: building the capacity of local talent through world-class training on the latest electronic design technologies and creating employment opportunities aligned with Siemens' expansion plans in Egypt.
"The partnership between ITIDA and Siemens Digital Industries Software marks a pivotal moment in our digital journey, reinforcing our dedication to advancing and positioning Egypt within the electronics industry through the 'Egypt Makes Electronics Initiative,"; said Dr. Amr Talaat, Minister of CIT. He highlighted, "This partnership serves as a catalyst for collaboration, knowledge transfer, and technological advancement, ultimately propelling Egypt's ICT sector to the forefront of global competitiveness."
The ITIDA and Siemens partnership aims to enhance Egypt's IT and electronics sectors and create new job opportunities for the Egyptian youth. Egypt has the largest and youngest talent pool in the Middle East and the second largest in EMEA with nearly 600,000 university graduates join the workforce each year.
Leveraging this vast talent pool, Siemens Digital Industries Software plans to significantly expand its presence in Egypt by incorporating a minimum of 20% new Egyptian employees annually, with the aim of reaching a local headcount of 1800 within the next three years. This workforce expansion is to be complemented by various national training initiatives designed to enhance export activities.
Additionally, the partnership focuses on empowering local electronics startups and fostering an innovation ecosystem through various initiatives, such as providing access to electronic design automation (EDA) tools, training, coaching, and technical support.
Mike Ellow, Executive Vice President, Siemens EDA, Siemens Digital Industries Software said: "Signing today's agreement highlights many points. Firstly, it's an acknowledgement of what Siemens EDA achieved here in Egypt over the last 28 years as a pioneer in driving and developing advanced semiconductor and electronics design technology in Egypt. This success was due to the access to Egyptian top engineering talent. Secondly, we achieved an increased cooperation with MCIT/ITIDA to grow the technology ecosystem in Egypt;"
"This agreement continues the tight cooperation between Siemens and the government, universities, and local organizations to support the future growth of our advanced development center in Egypt over the coming 3 years. We intend to support local SMEs working in semiconductor and electronics design and contribute to position and brand Egypt as a technology hub in the region."
ITIDA intends to extend logistical support to Siemens Digital Industries Software including outreach to the local talent and engineers, and nominate the company to benefit from government incentives for the electronics design sector where Egypt aims to position itself as a leading destination for electronics design and digital industries.
"This partnership goes beyond supporting the expansion of Siemens' operations in Egypt; it is a pivotal step in boosting the growth of our local IT and high-end services' exports. By joining forces with a multinational technology powerhouse like Siemens Digital Industries Software, our goal is to elevate the country's competitiveness on the global tech stage and generate more job opportunities for our abundant pool of local talent and skilled workforce in Egypt," commented Ahmed El-Zaher, CEO of ITIDA.
ITIDA, as the driving force behind Egypt's IT sector, is committed to creating an enabling environment for businesses to flourish. By supporting Siemens Digital Industries Software's expansion plans, ITIDA aims to attract foreign direct investment, promote exports of ICT services, and strengthen Egypt's position as a regional leader in electronics' design and digital solutions in line with the Digital Egypt Strategy for the Offshoring Industry (2022-2026).
Siemens Digital Industries Software is recognized worldwide for its innovative solutions that enable companies to embrace digitalization and thrive in the digital era. By expanding its operations in Egypt, Siemens intends not only strengthen its presence in the country but also contribute to the development of a vibrant ecosystem for electronics design and digital industries.
Through this partnership, Siemens Digital Industries Software plans to actively engage with local stakeholders, including academic institutions [National Telecommunication Institute (NTI), Information Technology Institute (ITI), and the American University in Cairo (AUC)], research centers, and industry associations. This collaboration aims to foster knowledge exchange, research collaboration, and the sharing of best practices to drive innovation and enhance Egypt's competitiveness in the global market.
"Finally, this agreement we signed today is part of our intention to increase our presence in Egypt and cooperate with MCIT/ITIDA through the various directions agreed upon today with the opportunity to extend to other areas that may provide mutual benefit in the future."; Mike Ellow affirmed.
The agreement was signed by Eng. Ahmed Elzaher, CEO of the Information Technology Industry Development Agency (ITIDA), and Dr. Hazem El Tahawy, Vice President for Siemens Digital Industries Software Middle East & North Africa.
The partnership aligns with the national initiative Egypt Makes Electronics, launched to position the electronics industry as one of the catalysts for economic growth in Egypt. By investing in the development of highly skilled calibers and fostering a culture of innovation, Siemens Digital Industries Software and ITIDA are actively contributing to the realization of Egypt's long-term goals for economic diversification and sustainable development.
