ICT industry is known to be the fastest-growing sector in Egypt. The sector hit new heights, recording a growth rate of about 16.7%, outpacing all the state’s economic sectors during the fiscal year 2021/2022.

The ICT sector’s contribution to the GDP reached 5% in 2021/2022 with a domestic product estimated at around EGP 150 billion, compared to EGP 128.7 billion in 2020/2021.

According to a report issued by the Ministry of Planning and Economic Development on performance indicators of the Egyptian economy during the same period, the ICT sector has come at the forefront in the number and value of acquisition & merger deals in the MENA region during the first half of 2022. Egypt is among the top 3 active MENA countries for mergers and acquisitions according to the Information and Decision Support Center (IDSC).

The IT sector in Egypt is creating increased and sustainable employment opportunities in the outsourcing services industry with a focus on higher value services. More than 215,000 jobs are created for the offshoring sector with over 30% women participation.

This has been fueled by the increased number of MNCs setting up in Egypt and the exponential growth of ICT exports reaching $4.9 billion in 2021/2022. In the year 2022, Egypt celebrated the signing of 29 MoUs with MNCs expanding and new to market. Capitalizing on the pivotal location, abundant talent pool, cost-competitiveness and government support, high growth companies are directing their attention to the uprising ICT powerhouse in the region.

Egypt is home to 500 Fortune companies with the likes of Amazon, Microsoft, IBM, Uber as well as tech-powered startups like Instabug, Vezeeta and Swvl. The country is leading the innovation scene in the region. It is attracting business moguls chasing tech-powered solutions to today’s global challenges. At this time, Egypt has established 150+ export delivery centers serving 100+ countries across North America, Europe, Middle East, Africa and Asia catering for ITS, BPS, KS and ER&D global demand.

Business leaders continually looking to grow their global footprint and provide client-centric solutions and services, will find Egypt as the frontier GBS/SSC destination for EMEA that offers high-tier capabilities such as business continuity, digitally skilled multilingual workforce and high-value services like IT, HR, finance & accounting, supply chain, and procurement.

Equipped with abundant highly-skilled talents, innovative hubs, labs and centers and increasingly heavy government support, the ER&D segment is progressively growing. Large players like Valeo, Siemens, IBM and BrightSkies are leveraging Egypt’s top tier capabilities in areas such as electronics design, embedded software and systems for their global delivery.

Egypt Makes Electronics:

Egypt Makes Electronics is a presidential initiative launched to position the electronics industry as one of the key props for growth in the Egyptian economy. EME initiative focuses on two main scopes. First is the superior design and production of electronic circuits and systems with high added-value and backed with a high level of tech support. Second is creating a labor-intensive electronics manufacturing industry.
EME strategy seeks to nurture and encourage local manufacturing to make Egypt an appealing investment destination for electronics/design companies. The strategy attracted numerous investors to: 1) serve the home market, and 2) export to regional markets. Three large manufacturers of mobile phones and tablets (Vivo, Nokia and Samsung) began manufacturing in Egypt. Smartphone/tablet manufacturers bring a total investment of EGP 2 billion and a production capacity of 20 million mobile phones.