Egypt’s digital-services industry generates $5.2bn as AI expands

by AHMED MOOLAH
CAIRO, (CAJ News) – EGYPT’S offshoring and digital-services industry is expanding rapidly, generating an estimated $5.2 billion as companies increasingly use artificial intelligence (AI) and other digital technologies.

The growth reflects Egypt’s attempt to position itself as a major outsourcing destination serving international businesses.

Egypt has several advantages in the global digital-services market, including a large young workforce, a sizeable pool of university graduates and its geographical position between European, Middle Eastern and African markets.

The country has also invested heavily in digital infrastructure and skills development.

Artificial intelligence is now changing the nature of outsourcing. Traditional call-centre and back-office operations are being supplemented by software development, data analysis, cloud services and AI-related work.

That creates an opportunity for Egypt to move up the value chain rather than compete solely on lower labour costs.

The government is seeking to attract international technology companies and create more employment in high-value digital sectors.

For Egypt, the economic benefits could extend beyond export earnings. A stronger technology industry can generate skilled jobs, support entrepreneurship and encourage universities to expand technical training.

The rapid development of AI also creates challenges. Workers will require new skills as automation changes traditional business-process roles.

Egypt therefore faces a race to ensure that education and training systems keep pace with technological change.

The $5.2 billion figure demonstrates that digital services are already becoming an important part of the economy. The next challenge is to increase the proportion of revenue coming from higher-value activities.

Egypt has an opportunity to become one of Africa’s leading digital-services hubs, but continued growth will depend on skills, reliable infrastructure and the ability to move from labour-intensive outsourcing towards AI-enabled services.

– CAJ News