Egypt’s IT boom draws foreign firms, creating jobs

Egypt is emerging as a major hub for information technology (IT) outsourcing and offshoring, as global companies seek cost-effective and operationally efficient solutions to traditional markets. This trend is fueling job creation and boosting export revenues in the North African country.

Over the past three years, tens of thousands of jobs have been created as foreign firms shift customer service, human resources, software development, and back-office operations to Egypt. Analysts and industry executives cite the country’s strategic location between East and West, its large multilingual workforce, and government-backed incentives as key drivers of this growth.

“Egypt has a lot to offer,” said Iyad Hafez, chief executive officer of Staff Arabia Group, a company providing HR offshoring and outsourcing services across the Middle East and North Africa. “To start with, its strategic location makes it time-zone friendly with Europe and the Middle East. It also has an excellent workforce pool with a diverse range of languages and expertise, strong government support, and favorable taxation and operational costs.”

Foreign investors have recently signed dozens of agreements, mainly in outsourcing and offshoring services, that are expected to create about 75,000 jobs for Egyptians over the next three years, according to industry estimates. Some deals involve companies expanding existing operations, while others mark first-time investments in the country.

“Some of them are expanding, some of them are investors coming newly to Egypt,” said Mayada Maged, managing partner at Staff Arabia Group. “It’s a collaboration between the government in Egypt, national authorities, as well as the companies and investors who view Egypt as very stable.”

The growth aligns with Egypt’s Vision 2030 strategy, which places the information technology sector at the center of the country’s long-term economic development plans. The government has prioritized digital infrastructure, workforce training, and skills development to position Egypt as a competitive exporter of technology-enabled services.

“Egypt has started designing strategies and action plans to enhance the role of IT in the economy,” said Yomna Al Hamaky, a professor of economics at Ain Shams University. “These efforts focus on enhancing training capabilities and upgrading the skills of youth.” She added that challenges remain, particularly in internet speed and infrastructure, but noted that measures are underway to address these gaps.

“We are working diligently to improve internet speed,” she said.

Industry leaders say the expansion of offshoring is already delivering tangible economic benefits, particularly through foreign currency inflows.

“Today we are an economy that exports not only products but also services,” Hafez said. “Hard currency is being transferred to Egypt through salaries, operations, premises, and many other channels. This is having a positive impact on the Egyptian economy.”

Official statistics underscore the sector’s rapid ascent. Offshoring revenues have doubled from $2.4 billion in 2022 to about $4.8 billion in 2025, now accounting for roughly six percent of Egypt’s gross domestic product, up from 3.2 percent in 2018. The government has set an ambitious target to quadruple digital exports by 2030.

As multinational firms continue to diversify their global operations, experts say Egypt’s growing IT sector is poised to play an increasingly central role in the country’s economic transformation.

Edited by CGTN Africa reporter Marion Gachuhi