ICT sector fastest-growing contributor to Egypt economy

Talaat made his remarks during the two-day US-Egypt Policy Leaders Forum in Cairo, which concluded on Monday.

The event was held under the auspices of President Abdel-Fattah El-Sisi, and 55 American companies operating in almost 11 sectors participated.

According to Talaat, the sector now boasts an annual growth rate of 16 percent, making it a cornerstone of Egypt’s economic development strategy.

Speaking at the forum, Talaat outlined Egypt’s ambitious drive to build a digital economy anchored in artificial intelligence (AI) and emerging technologies.

“We are investing in our digital infrastructure and our people, empowering citizens with skills to meet future job market demands,” he said.

A key focus of this digital transformation is human capital development. Minister Talaat said the number of Egyptians receiving digital skills training has surged from 4,000 in 2018 to 500,000 trainees annually.

This includes various educational initiatives, from youth digital literacy to advanced AI and data science programmes.

To support this, the government has launched 19 WE Applied Technology Schools nationwide and established the Egypt University of Informatics — the first university in Africa dedicated solely to ICT disciplines.

Talaat also announced a new strategic partnership with IBM to train 100,000 Egyptians in AI and quantum computing over five years.

The programme, delivered via IBM’s SkillsBuild platform, will provide learners with internationally recognized digital credentials.

It targets students, job seekers, and professionals and is part of Egypt’s broader efforts to localize advanced tech skills and foster innovation.

Egypt’s ICT export sector is also experiencing unprecedented growth. The number of outsourcing companies operating in Egypt has risen by 180 percent since 2021, from 64 to over 180 firms operating over 200 service centres.

Egypt’s competitive cost structure, multilingual workforce, and strategic location have driven an 80 percent increase in outsourcing service exports over the past three years.

This geographic advantage is also evident in Egypt’s role as a data transit hub.

Over 90 percent of internet data traffic between Asia and Europe passes through Egypt, which is currently home to 20 international submarine cables, five more under construction, and 10 landing stations.

Plans are underway to build two additional stations in 2026 as part of an aggressive infrastructure modernisation plan, including expanding mobile towers and fibre-optic networks across the country.

Egypt’s digital government transformation is another central “Digital Egypt” strategy pillar.

Over 200 digital government services are now available to citizens, with more underway, including the digitization of the national health insurance system and the land ownership registry.

Talaat said the ministry is also working to create an enabling legislative and regulatory framework to ensure good governance and private sector growth.

The country’s AI ambitions are being advanced through a newly updated National Artificial Intelligence Strategy, first launched in 2019 and revised earlier this year.

The second phase of the strategy emphasizes industry development, AI governance, and cross-sectoral applications, including legal automation, disease early detection, AI-powered satellite monitoring for agriculture, and machine translation tools.

Egypt’s efforts are already gaining international recognition. Between 2019 and 2024, the country advanced 46 positions in the global Government AI Readiness Index and was rated “Advanced” in the ITU’s Regulatory Performance Index.

Egypt leads Africa in average fixed internet speed and ranks second in the continent for affordable broadband pricing.

The forum also saw the launch of a public-private initiative to accelerate AI adoption across key sectors in Egypt.

The initiative was jointly developed by the Ministry of Communications and Information Technology, the American Chamber of Commerce in Egypt, US tech companies, and other stakeholders. It will support startup growth, AI in education, ethical AI governance, and experimental cross-sector pilot projects.

“This cooperation marks a critical step toward expanding Egypt’s AI capabilities and creating a competitive, sustainable digital economy. Our partnerships with global technology leaders like IBM are helping ensure Egypt is not just a consumer of technology, but a developer of it,” Talaat concluded.