Egypt's ICT sector grows 20.3% as government eyes AI hub status

Mahmoud Badawy, Assistant Minister of Communications and Information Technology for Digital Transformation, said Egypt is leveraging technology to drive economic growth, improve public services, attract investment, and build national capabilities.

By: Hanan Mohamed

Tue, Jul. 21, 2026

Egypt's ICT sector expanded by 20.3% to contribute around 6% of gross domestic product (GDP), while digital exports reached $7.4 billion in 2025, as the government steps up efforts to position the country as a regional hub for artificial intelligence and digital infrastructure.
 
Speaking at the "From Silicon Valley to the Nile Valley" forum hosted by the U.S. Embassy in Cairo, Mahmoud Badawy, Assistant Minister of Communications and Information Technology for Digital Transformation, said Egypt is leveraging technology to drive economic growth, improve public services, attract investment, and build national capabilities.
 
Badawy said outsourcing exports accounted for $5.2 billion of Egypt's digital exports last year, while fixed broadband speeds climbed to 92.73 Mbps in May 2026, up from 6.5 Mbps in 2019, maintaining Egypt's position as Africa's fastest broadband market.
He added that the government has invested more than $6 billion in telecommunications infrastructure since 2019, with the country now operating over 37,000 mobile base stations. More than 14 million citizens currently use the Digital Egypt platform, which is expected to offer 270 government services by the end of the year.
 
Egypt also hosts more than 270 global delivery centers, including operations run by 59 American companies, employing over 160,000 professionals serving international markets, according to Badawy.
 
Highlighting the country's AI ambitions, Badawy said Egypt's 2025–2030 National AI Strategy focuses on infrastructure, data, governance, technology, talent, innovation, and ecosystem development, with the goal of positioning Egypt as a leading AI hub in Africa, the Arab region, and the Global South.
 
He noted that Egypt ranks second in Africa in the Responsible AI Index, while also developing K2, an open-source Arabic large language model designed to support researchers, startups, and developers.
 
On digital infrastructure, Badawy said Egypt is connected by 15 operational submarine cables, with three additional cables under construction, reinforcing its position as a regional connectivity hub.
 
He also highlighted a new regulatory framework for data centers and cloud services, alongside 10 data center licenses issued over the past two years, including a recently announced project backed by around $400 million in investment.
 
Looking ahead, Badawy identified talent development, regional market expansion, AI infrastructure, and deeper collaboration with U.S. technology companies as key priorities for strengthening the U.S.-Egypt digital partnership.