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Egypt EN Alpseast
Egypt EN Alpseast
information technology field and ranked it as the first country in the Middle East,
North Africa and Europe (MENA’s Powerhouse of Innovation). In addition, Egypt
obtained International recognition and merit certificates in supporting the
export of its IT products and services because of business Environment,
Competitive costs, Egyptian professionals are multi-lingual. All these factors led
to attracting investment to Egypt in the field of technology, led to brimming with
new opportunities and tech-driven businesses. The one aspect that sets Egypt
apart from other nearshore destinations in Europe, as well as on a global
comparison, is the possibility to implement service centers on a meaningful
scale, like the Philippines and India we will explain it in detail below:
Testimonials …
" German Foreign Minister Sigmar Gabriel"
there is no other place on earth that has as many German
foreign schools as there is in Egypt. He added that it is a matter of
pride that Egypt has so much confidence in Germany with regard
to youth education. Gabriel described the university exchange
between the two countries as "really wonderful". Aug 2017
United nations “Egypt is Africa’s top first FDI destination” June 2021
Why invest in Egypt?
Linguistic factor
Arabic is the mother tongue in Egypt, so it can provide information technology
services to 300 million Arab consumers all over the world, including the local
market. Also English is the main language in the IT sector and it considered the
second official language in the country with more than 90000 graduating in
English every year, 80% of the working population neutral accents for 20
languages (17 million people speak English fluently as a second language and 1.7
million people speak German), graduates complete college education with
proficiency in many languages and the total number of German graduates is
3438 (look the graphic)
31 schools under the Future Partner School Initiative “PASCH”, their courses
of study include German teaching at different levels.
Egypt have 3099 official language schools and applied a plan to study a second
foreign language from the first grade of junior high school, and the students
have to choose between German and French and note there are large number of
student study German, this plan has been launched and distributed to other
public schools
Scholarships and student exchanges between the two countries continue to
increase which The German Academic Exchange Service (DAAD) gave
Scholarships and research for 5265 Egyptian in different programs Last year
2021, so with all the previous confirms the power of German language in Egypt.
The Ministry of Communications and Information Technology and the
Information Technology Industry Development Agency (ITIDA) developed
strategies of building capacities to boost the skills and qualify our human
resources for meeting the expanding needs of the ICT market “Languages are
among the top requirements” especially German, so it’s created a database of
trained and qualified cadres in German in Upper Egypt, This data helps global
companies to invest in the south region of Egypt and Graduates will be linked to
available job opportunities in contact centers and offshoring service centers for
an average monthly income of more than 10,000 EGP.
The Goethe-Institute implements this initial phase and tracks are to be embedded
within the study period, vacations via integrated learning – online. Goal is to uplift
the level of students from beginning (A1) to advanced level (B2) in German
language proficiency.
Among these the Human Capacity Development programs the "Training
Academies" that provides training with the aim of qualifying job seekers to join
companies working in the field of IT outsourcing and creating new job
opportunities in cooperation with these companies to bridge the gap between
supply and demand for companies' needs for qualified cadres who can speak
German. The program aims to train 1,000 job seekers to master the German
language and employ 80% of them in the outsourcing sector by the end of
November 2022.
The University Council and Goethe Institute reached an agreement for training
about 100 teachers and their assistants in Egyptian universities to teach by the
latest German teaching methods. In March 2022, Goethe Institutes celebrated
with the graduation ceremony of the first batch, and another three groups are
currently being trained.
Location fundamentals
Pivotal Location
Being in the center of the world, Egypt is at the crossroads between Europe, Asia
and Africa and the heart of EMEA. It is considered as a nearshore location to
Europe. Egypt is also in an Eastern European Time (EET) zone. This is eligible Egypt
offers seamless business continuity with the US and Asia to Take advantage of
time difference (Follow-the-Sun approach).
Egypt is a hub for internet submarine cables, with 13 cables and 5 under
construction transiting through the country, connecting 60+ countries. 90% of
Europe-Asia Data Flow goes through Egypt’s internet cable. Egypt is establishing
largest fiber optic factory in the MENA in the Suez Canal Economic Zone (SCZone).
Transportation
1) Egypt has 26 airports nationwide 11 international airports, 5 international and
domestic airports, 5 domestic airports, BOT Airport with three airports in Cairo
alone:
The average salary of the call center agent is approximately at $402 per month
and for call center managers estimated at $950 per month According to survey
“All-Africa Global Business Services Benchmarking”
Improve the global competence of graduates
Egypt is a center for producing knowledge and distinguished highly skilled
professionals in IT sector, it trains these graduates to become human cadres with
global competitiveness in the field of information and communication technology,
highly knowledgeable and proficient in emerging technologies such as Artificial
Intelligence (AI), Internet of Things (IoT), Big Data, and Robotics, they equipped
with different perspectives and open to new cultures, they can maneuver their
way around the different nuances within a global marketplace
These start-ups are also supported by a strong investment ecosystem. Since 2015,
318 Egyptian start-ups have raised nearly $800 million, it is reported that the
capital flowing to the ecosystem is increasing year by year, the amount of
156,248,000 USD raised in 2020 increased by 1.716% compared with USD 6.8
million raised by banks in 2015, up till now more than 80 Egyptian start-ups have
raised more than 400 million dollars this year.
In addition, Egypt ranks fifth in the global innovation index GII released by
WIPO.
Egypt is home to world’s greatest wonders and is one of the best countries known
for its recreational, outdoors activities and sightseeing, known for its distinctive
destinations, Egypt has different strokes for different travelers. From exploring
the mighty pyramids, and marvelous artifacts, to visiting its exquisite beaches and
diving spots, to adventuring in desert safaris and enjoying a vibrant nightlife,
many travelers are enchanted with the unique and memorable experiences they
witness.
Cairo is the amongst the top 20% least expensive cities in the world, it is
estimated that on average it costs an individual a month cost of only $500 to live
in Egypt. Expats living in Egypt can choose from different housing options,
whether residential compounds offering recreational spaces and facilities, private
villas, apartments, or studios with High quality infrastructure, high international
standards, affordable prices, entertainment facilities, international restaurants
and shopping centers
Egypt is Africa’s top FDI recipient and one of the leading countries for FDI inflows in
the Middle East, as of UNCTAD in 2021. Egypt maintains significant stability and
economic flexibility. The country is growing stronger and becoming more resilient
after economic reforms began in earnest in 2016.
Cairo ranks first in Africa in following Strategies to attract foreign direct investment
according to the report "The Future Technology Business Environment in Africa" in
2021-2022 Published by FDI Intelligence” Financial Times
ICT Sector
Fastest growing sector
ICT industry is known to be the fastest growing sector in Egypt and The largest
contributor to GDP that recording a growth rate of about 16.3% outpacing all the
state’s economic sectors during the fiscal year 2021/2022.
The sector hit new heights which its contribution to the GDP has increased from
4.4% in 2019/2020 to 5% in 2020/2021.The sector has retained its leading
position as the highest-growing sector over its peers for the fourth consecutive
fiscal year 2019/2020 showing strong and resilient performance despite the global
economic downturn and uncertainty as shown in the figure:
According to a report issued by the Ministry of Planning and Economic
Development on performance indicators of the Egyptian economy during the
same period, the ICT sector has come at the forefront in the number and value of
acquisition & merger deals in the MENA region during the first half of 2022.
It is creating 280K jobs (30%+ women participation). This has been fueled by the
increased number of MNCs setting up in Egypt and the exponential growth of ICT
exports reaching $4.9 billion in 2021/2022. Capitalizing on the pivotal location,
abundant talent pool (low attrition rates 10-15%), cost-competitiveness and
government support, high growth companies are directing their attention to the
uprising ICT powerhouse in the region.
Hub to high-growth companies
Egypt is home to 500 Fortune companies with the likes of Amazon, Microsoft,
IBM, Uber as well as tech-powered startups like Instabug, Vezeeta and Swvl. The
country is leading the innovation scene in the region. It is attracting business
moguls chasing tech-powered solutions to today’s global challenges.
Egypt has established 150+ export delivery centers serving 100+ countries across
North America, Europe, Middle East, Africa and Asia catering for ITS, BPS, KS and
ER&D global demand.
Business leaders continually looking to grow their global footprint and provide
client-centric solutions and services, will find Egypt as the frontier GBS/SSC
destination for EMEA that offers high-tier capabilities such as business continuity,
digitally skilled multilingual workforce and high-value services like IT, HR, finance
& accounting, supply chain, and procurement.
This sector resilient & agile
with its recent performance in the Economist’s Normalcy Index, Egypt was ranked
4th positioning itself among the top 10 countries showing resilience during
COVID-19 pandemic. Furthermore, owing to the governmental investments in
internet infrastructure upgrades, MNCs were able to migrate 50-80% workforce
successfully to WFH within 2 weeks only without disruption in business processes
and services as well as achieving their target revenues for 2020.
Financial support
Egypt's tax system supports the development of software industry and external
services, and provides special convenience for investors:
Value added tax on export oriented services = 0
Foreign ownership =100% for companies
foreign representatives =100% in the board of directors
Full rights to the profit and dividends distributed in any currency
Protection against expropriation
Prevention of double taxation through international treaties
Protection against forced pricing
Incentives are applicable for foreign and local companies, on new establishments
as well as expansions, provided that services are being exported and A quantum
of incentives in the form of annual reimbursement on OPEX per new hire with a
declining scale between 2022 and 2026 and are tiered according to the scale of
hiring as shown in the tables below
Support for Electronics Design & Development
30% to 50% Corporate Tax reduction; up to 80% of total paid capital
Customs and tax exemption on machines, tools, and equipment in Tech Parks
Up to 50% subsidy on cost for Design Offices and Manufacturing in Tech Parks
5% to 10% export overhead rebate, based local-value 50% freight cost subsidy
to Africa
15% local product cost advantage for governmental purchases
Fund over 3 years of HR development for enterprise staff (local/overseas); up
to $10K/person
Professional and vocational training programs
Grants for R&D projects up to $320K
Alpseast is firmly committed with the Egyptian government to the 2030 National
Agenda & goals and the United Nations Sustainable Development Goals (SDGs).
Intellectual Property Office was established for developing a business-friendly
environment that attracts foreign investment and high-growth companies even in
challenging times, for improving awareness of intellectual property rights, for
Ensuring that laws and regulations are implemented
1) Ecosystem Development
Redesigned incentives to improve attractiveness and increase adoption
Enhanced engagement with existing investors as well as talent and support
development of local companies
Evaluate commercial office space to support future growth
1) First is the superior design and production of electronic circuits and systems
with high added-value and backed with a high level of tech support.
2) Second is creating a labor-intensive electronics manufacturing industry.
Industry Products:
Smart Phones, Tablets, and GPS LED Lighting/Displays
Smart Meters Solar Systems
IoT Devices/Smart Solutions Industrial Electronics
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Examples of leading MNCs Successful in Egypt
Egypt is the global center of information technology industry and services based
on technological innovation, it is the home of the world's leading MNCs, providing
outsourcing services for international IT They can establish and expand their
business because of more facilities, a faster market strategy and business
continuity, multinational companies were investing heavily in Egypt achieving
global scale efficiency, growing their business operations and finally reaching their
target revenues.
:المصادر
"الجهاز المركزي للتعبئة واالحصاء "النشرة السنوية لخريجي التعليم العالي
"سفارة جمهورية ألمانية االتحادية "دليل المؤسسات التعليمية األلمانية في مصر
" Outsourcing Destination Guide Egypt " وزارة االتصاالت وتكنولوجيا المعلومات
البنك الدولي