Egypt wants AI to power nearly 8% of its GDP
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Egypt has set an ambitious target: artificial intelligence contributing 7.7 percent of GDP by 2030. That amounts to an estimated $42.7 billion annually, according to the Ministry of Communications and Information Technology (MCIT). The figure places AI at the center of Egypt’s long-term growth strategy, signaling a shift from outsourcing-driven growth to technology-led transformation.
Outsourcing remains a strong foundation
Over the past three years, Egypt’s outsourcing industry has expanded sharply. Exports of digital services reached $4.3 billion in 2024, an 80 percent increase, while the workforce grew by 70 percent to 160,000 specialists. The number of companies tripled to over 180.
This growth has given Egypt credibility as a digital services hub. Investors have been attracted by a combination of workforce availability, training initiatives, and competitive costs. Minister Amr Talaat has positioned outsourcing as the bridge toward more advanced AI-led industries.
Electronics manufacturing gains traction
Beyond digital services, Egypt is pushing to anchor AI within its industrial base. Fourteen mobile phone factories are already operating in the country, with output projected to rise from 3.5 million units in 2024 to 9 million in 2025. Exports are expected to begin this year, supported by Egypt’s free trade agreements in Africa and the Middle East.
If successful, this will give Egypt leverage in semiconductors, electronics, and smart devices—sectors that are critical for AI adoption and localization.
National AI strategy focuses on six pillars
The updated 2025–2030 National AI Strategy rests on six pillars:
Building data governance frameworks
Deploying AI applications in priority sectors such as healthcare and justice
Training 30,000 AI specialists by 2030
Raising digital awareness among government employees and citizens
Encouraging AI-driven innovation and startups
Strengthening regulatory clarity
Officials want 25 percent of government workers and over one-third of citizens to effectively use AI tools by the end of the decade. This dual focus—specialist training and broad adoption—reflects Egypt’s intent to scale AI both vertically (in advanced industries) and horizontally (in public services and daily life).
Global spotlight shifts to Cairo
International recognition of Egypt’s ambitions came into focus this September when the country hosted the launch of AI Everything Middle East & Africa (MEA) Egypt 2026. The event, organized by GITEX GLOBAL in partnership with ITIDA, brought together global AI leaders, startups, and investors at Sultan Hussein Kamel Palace in Cairo.
The Cairo edition, set for February 2026, is expected to draw participants from 60 countries. With discussions ranging from responsible AI deployment to applications in healthtech, fintech, cybersecurity, and semiconductors, the summit is being positioned as one of the largest AI gatherings in the region.
Trixie LohMirmand, CEO of KAOUN International, described the Cairo event as part of an “AI renaissance,” empowering Egyptian startups and young talent. For Minister Talaat, hosting the summit reflects Egypt’s improved standing: the country has climbed 46 places in the Global AI Readiness Index since its first strategy in 2019.
Challenges ahead for Egypt’s AI ambitions
Despite the optimism, achieving 7.7 percent of GDP from AI by 2030 is far from guaranteed. The target requires:
Massive upskilling: Training 30,000 AI specialists is a stretch goal given the country’s current talent pipeline.
Regulatory trust: Clear frameworks will be needed to attract global companies wary of governance and data standards.
Startup scaling: While firms like Intella and WideBot AI have secured funding, most Egyptian startups remain early-stage and face capital constraints.
Infrastructure demands: AI requires advanced computing power and reliable data centers, areas where Egypt must accelerate investment.
If Egypt manages to align outsourcing growth, electronics manufacturing, and AI adoption under a coherent strategy, it could position itself as the Middle East and Africa’s AI hub. The upcoming AI Everything MEA 2026 summit will be a litmus test of that ambition.
For now, Egypt has momentum, visibility, and clear goals. The question is whether it can convert them into the kind of systemic transformation needed to make AI not just a tool for efficiency, but a driver of economic growth.