EGYPT

The Destination of Choice

“Primary Location for Outsourcing,
Shared Services and Captives in EMEA” –Gartner (2017)
“Outsourcing Destination of the Year”
–Global Sourcing Association (2016)

“This is a good TIME for investors to explore

new investment opportunities in Egypt”
PricewaterhouseCoopers (2017)
Fast-Paced Economy
$ FDI

14.2%
FDI Growth
6.9 B 7.9 B
ICT 2016/2017
2.2 B
2011 2016 2017

Sector GDP

Exports $ Fastest growing

sector
1.8% 4.2% 5.5%*
13% 2011 2017
*IMF projections
2019

1.87 B 3.26 B 136,000+

2015 2017 IMF Reforms New Investment Law
Offshoring Jobs
Nov 2016 May 2017
Developed Infrastructure

Telecom

13 Internet Cable Routes

60+ Countries connected
60 Tbps Capacity
4 Landing Points Transport
Power 4 Mobile Operators
12 International Airports
15 Domestic Airports
1.7 GW Solar by mid-2019 17 Ports
Largest solar park worldwide 6 Underground lines
7.2 GW Wind by 2022 Multiple Ride-sharing
4.8 GW Nuclear by 2024 companies
EGP 60B Gov expenditure on
2.8 GW Hydro
36 GW Conventional
Water networks in 2017

Nile River
4 Ground water aquifers
Mediterranean Sea
Red Sea
 Increased Global Confidence

This is a good time for investors to explore new Building on the ongoing reform efforts and the Improved Global
investment opportunities in Egypt restoration of confidence, Egypt has the opportunity to Competitiveness Rank
FEB 2017 transition to a higher growth trajectory SEP 2017
FEB 2017

Egypt has made ambitious economic reforms Egypt among standout Egypt stands out as the
over the past few years, which have helped boost performers for 2018 economic outperformer
investor confidence and attract foreign capital JAN 2018 JAN 2018
OCT 2017
Progressive ICT Ranking

Putting Egypt Back on Top Destination in Outsourcing Destination of One of the Most Attractive
your Location Radar African BPO Markets the Year 2016 Award Destinations for ITO&BPO Globally
May 2015 Jul 2016 Oct 2016 Apr 2017

#1 Outsourcing Destination Primary Location for Outsourcing, Offshoring Industry Embraces One of the World’s main IT
in MEA SSC & Captives in EMEA 3rd Platform Technologies Investment Destinations
Sep 2017 2016 & 2017 Feb 2018 Mar 2018
 “Representing one of “Delivery center for
the largest qualified several global enterprise
labour forces outside companies & 100s of
of India” multinational & regional
players”

“Geographic
proximity “Among10 Top
to Europe& Asia countries
& is gatewayto
MiddleEast& Africa” to launcha startup”

“Starting a business “Egypt offers one of

made easier by themostcompetitive
merging procedures at operating cost per full-
the one-stop shop” timeemployee”
 Lower Costs
100+ Million Population Direct annual operating cost per FTE for
multi-lingual contact center
Source: Adapted from Everest (2015) to reflect 2017
50% exchange rate
Aged 15 - 44

500,000 Annual Graduates

220,000 “Devaluation of Egyptian Pound works in favor of the IT exports
business process industry, as it will help entice organizations to offshore in Egypt”
services related –IDC (2016)

50,000 Culturally
IT related
Compatible
with Western Business
Certified high-value training in 39 Technology Tracks
16,000 Target Graduates
Low Labor 20+ Languages served In collaboration with online learning platforms, MNCs, and leading
universities
Attrition across 100+ countries
 Located at the Highlights
Center of the World
Structural economic reform supported by the
IMF to revive growth prospects and unleash
economy’s potential

New investment law and free zones develop-

Free Trade agreements covering ment to guarantee maximum support and
70+ countries across Africa, Asia, andEurope incentives for investors

Inaugurated four Technology parks in tier-II

cities with plans to expand across major tier-II
Similar CET Zone cities and establish the Knowledge city in the
Business Continuity New Administrative Capital
with US and Asia
Follow the Sun approach

Investors attraction, support and

aftercare system
Market intelligence & due diligence Launch of the 4th Mobile Operator
Training & talent development
Telecommunication National initiative for boosting the electronics
Set-up/expansion support design & Manufacturing Industry
Competitive office spaces
Dedicated Account Manager for each investor
Time for
Investment
Hub for Fortune 500
companies’ IT/ITeS
Tech Leaders Leveraging Egypt for Global Operations

In Egypt Since 1954 In Egypt Since 2009

6 Regional TechCenters Center of Excellence

Large Number of Employees (confidential) 1100+ Employees (47% Females, highest across Dell)

“We are proud to be part of your past, “Selected by DELL EMC Senior Execu-
and we are excited to be part of Egypt’s tives as one of the “Best” locations for
future, and it was important to be here at investment and growth.”
this moment in time.”
Magued Mahmoud, VP & GM
Ginni Rometty, Chairman, President & CEO
A Global Sourcing Hub for Captives and Providers

In Egypt Since 2002 In Egypt Since 2004

6000 Employees 2000 Employees (1/3 Females)

Targeting 7000 in 2018
“Egypt is an attractive location for
“The spirit, optimism and enthusiasm its stable and secure
of VIS Egypt’s organizational work infrastructure; large educated and
culture is remarkable.” high quality engineer and IT labor
pool; and availability of many
Vittorio Colao, Group CEO language skills.”

Frances Woodworth, Head of Egypt

All AI and Cognitive activities Service Implementation & Deputy Site
3rd line support for IoT services Leader
Smart Cities solution for Spain
Main of their 5 Service Centers
A Global Sourcing Hub for Captives and Providers

In Egypt Since 2007 In Egypt Since 2007

2000 Employees 4200 Employees
“This is exciting times for Convergys in Cairo. “Currently 3000+ Egyptian professionals
We continue committed to grow the company in provide 24/7 customer experience services to
Egypt as we believe the profile and commitment 4 continents, in 20+ languages, through 6
of workforce is the secret of our success.” different channels of interaction.”

Paulo Pereira, Site Director Giorgio Modesti, Egypt & UAE CEO (2016)
A Growing Edge in Knowledge Process and Design

In Egypt Since 1995 In Egypt Since 1995

Advanced Technology Lab & Regional Largest R&D office outside the US
Centers of Expertise
400+ Employees
500 Employees
400+ Technical Publications &
“Microsoft’s vision is to leverage Egypt’s wealth 26 Registered Patents
of research & software engineering talent and
unique expertise around natural language
“Our Strategy is establish Mentor Graphics
processing and speech processing to serve as a
as the trusted advisor high technology
center of expertise for language processing and
reference in the MENA region.. Where is the
speech processing across Microsoft.”
talent we have to be.”

Hussein Salama, Dr Walden Rhines

Advanced Technology Lab Director Chairman of Board & CEO.
A Growing Edge in Knowledge Process and Design

In Egypt Since 2006 In Egypt Since 2016

R&D Center of Excellence 30+ Employees

1500 Employees “Egypt is a natural fit with IDC's strategy

to invest and grow its presence across
“Our software house in Egypt is the main the Middle East and Africa.”
software house for Valeo, serving the entire
group in 30 different countries” Jyoti Lalchandani, IDC's VP & MD for the
MEA & Turkey
Wael Abu El-Maaty, General Manager, Valeo
Egypt
Time for
Tech Parks
Golden Opportunities
for DC in Tech Parks

Issue
White spot of Data Centers & Clouds in
the Middle East causing APAC Latency

Opportunities
Utilizing
Strategic Location
High-Quality Infrastructure
Technology Parks
for building a network of Data Centers

Saves 150+ms
from Gulf and Far East routes
Knowledge City

Technology Knowledge Ecosystem

Innovation & Startups Libraries Gov Services
Leading Tech Companies Research & Labs Community Services
MNCs & Local Service Providers Universities & Schools Smart Infrastructure
Research and Design Houses Online Education Energy Management
Time for
Electronics
Electronics National Initiative

Industry Segments Incentives & Subsidies

Product/System Design & Development
IC Design & Development
Contract Manufacturing Office spaces
in WE Parks for R&D projects
Semiconductors design houses
Logistics, Repair & Recycling

electronic
Enterprise
Industry Products Training
design tools &
development kits
Smart Phones, Tablets, and GPS
LED Lighting/Displays
Smart Meters Tax & custom
Graduates duties exemption
Solar Systems Training on tools/ equipment
IoT Devices/Smart Solutions in WE Parks
Industrial Electronics
 Manufacturing Giants

Leading Design Houses

Since in 2017
Since 2012 JV with Chinese Megan
$780M Annual Revenue Mobile phones, tablets,
4M units/year GPS & IoT products
2M unit/year

Since 1964
Since 2001 JV with
$600M Annual Revenue
Toshiba & Sharp
1.5M units/year
$1.1B Annual Revenue
1.5M units/year
Electronics Development Projects
in Tech Parks

Testing and Accredited Prototype Labs Microelectronics Lab

Lab
Electronics Products Testing IoT & Smart City Labs
Characterization & Testing
and Quality FabLab (Industrial Rapid
Prototype labs) MEMS Clean Room facilities
Issuing International Quality
Certificates (Fabrication MEMS Devices)
PCB Labs (Multilayer
Telecom Products, Consumer Fabrication & Assembly) Printed Electronics
Electronics, Smart Meters, LED Technology
Lighting, Fire Alarm
Unmatchable Cost
Monthly Manufacturing Services Salary Overhead Cost

EGYPT CHINA TURKEY INDIA

BLUE
COLLAR $150 $500 $700 $200 Electricity for Industry Subsidized Oil & gas
Sector $0.08 / KWh $0.35 / L (Gasoline)

SKILLED
TECHNICIAN $350 $1100 $1500 $500

ENGINEER $350 $1200 $1500 $600

Water cost Office Space

SENIOR $0.15 / m3 $8 - $12 / m2 monthly
ENGINEER $800 $2000 $2500 $1200
Ready Manufacturing Space
$3-4 / m2 monthly
MIDDLE
MANAGER $1500 $3000 $3000 $1800

Source: ITIDA industry survey 2017

Time for
Innovation
 Innovation Catalyst &
End-To-End Support
UNDP selected Egypt to host its Regional UN Technology Innovation Lab (UNTIL)… The first in Africa!
Technology Innovation & Entrepreneurship Center
(TIEC) works with:

Leading International
VCs &
Global
Technology Industry 12000+
Incubation events &
Hubs
Players
networks TRAINED
2600+
ENTREPRENEURS
340+
STARTUPS

15 COMPETITIONS
& HACKATHONS
Egyptian IT Startups
Investments

Jul 2015 Oct 2015 Apr 2016 Jun 2016

IP Solutions Provider Shopping Platform Multi-Channel Network Bug ReportingApp
Bluetooth Smart
IP acquired by $2.7M Raised $5M Raised $1.7M Raised

Jan 2017 Jun 2017 Dec 2017 Mar 2018

Healthcare Platform Food-finding Platform AI-Aided Assistant AI Engine
$5M Raised $1.5M Raised $2M Raised
Acquired by
Egyptian IT Startups
Global Recognition

Feb 2016 Jun 2016 Dec 2016 Jan 2017

Raye7 Eventtus Blink Egypt ranked 4th Place in
Event Organizing App Road-Safety App Team Participation & 4th
Ride-sharingApp
2nd Best Mobile Startup Award Panelist with US President in Among the 5 Winning Ideas Place Individual Participation
(4YFN) Global Entrepreneurship Summit

Mar 2017 Jun 2017 Jun 2017 Jan 2018

Three Egyptian Startups 14 Egyptian Startups among Egyptian Startups won ALL AvidBeam
Finalists in the Startup 100 Arab Startups shaping the Three Tracks of the Grand Prize of the AI Startup
Championship 4th Industrial Revolution Competition Pitching Competition
Thank you

Ministry of Communications & Information Technology

Information Technology Industry Development Agency

timeforegypt.net