Egypt has taken another major step toward strengthening its digital economy and technology sector by introducing new export incentives for semiconductor and electronics services. The Information Technology Industry Development Agency and the Export Development Fund have signed a seven-year agreement aimed at accelerating the growth of Egypt’s high-value technology exports and attracting international investment into advanced digital industries.
The new framework brings electronics design, semiconductor development, embedded systems, and mobile technology services into Egypt’s Export Development Programme beginning in the 2025/2026 financial year. Under the programme, qualifying companies will receive incentives linked directly to export performance and job creation. Businesses that increase exports and expand employment opportunities will qualify for higher levels of support, helping them compete more effectively in international markets.
The agreement was signed by Eng. Raafat Hindy, Minister of Communications and Information Technology, and Dr Mohamed Farid, Minister of Investment and Foreign Trade. The partnership forms part of Egypt’s broader strategy to position itself as a regional hub for advanced technology, digital innovation, and high-value engineering services.
According to Eng. Hindy, the inclusion of semiconductor and electronics design services in the Export Rebate Programme represents a major milestone for Egypt’s high-tech manufacturing ambitions. He explained that the initiative will strengthen Egypt’s role in global technology value chains while supporting efforts to attract research and development centres from international companies.
Hindy also highlighted the government’s ongoing coordination with the Ministry of Investment to build an integrated digital investment ecosystem. The objective is to improve investor experiences through digital services, better connectivity between government entities, and faster processing times for businesses entering the Egyptian market.
Egypt’s semiconductor and electronics sector has become increasingly attractive to global investors due to its growing pool of highly skilled engineers and competitive operating costs. The government believes the initiative aligns closely with the presidential “Egypt Makes Electronics” strategy, which aims to deepen local manufacturing capabilities, increase value-added production, and create high-quality employment opportunities in advanced technology sectors.
Dr Mohamed Farid stated that expanding export incentives into high-tech industries reflects Egypt’s strategic focus on knowledge-based exports and economic diversification. He noted that the new incentive system is tied directly to measurable export growth, ensuring both sustainability and efficiency within the programme.
Farid further explained that Egypt continues to pursue regulatory reforms designed to improve investment conditions and attract businesses operating in advanced sectors such as artificial intelligence, cloud computing, semiconductors, and data centres. The government is also working to digitise the operations of the Export Development Fund to streamline procedures, strengthen governance, and improve access to export incentives.
As part of the broader digital transformation agenda, government officials reviewed several initiatives aimed at improving the investment climate in Egypt. These projects include the creation of integrated digital platforms connecting multiple government entities to simplify licensing procedures, unify services, and reduce delays for investors and exporters.
ITIDA CEO Eng. Ahmed Elzaher said Egypt’s electronics and embedded systems design sector is currently experiencing strong growth momentum. He revealed that the industry now delivers value-added levels exceeding 90 percent, making it one of the highest-value segments within the global offshoring market. The country’s ability to export specialised engineering and design services is helping establish Egypt as a leading destination for advanced technology outsourcing.
The collaboration between ITIDA and the Export Development Fund also focuses on redesigning the investor journey through digital transformation. Planned improvements include simplified licensing systems, enhanced transparency, and more efficient government services. These changes are expected to strengthen Egypt’s global competitiveness and improve its ranking in international ease-of-doing-business indicators.
Egypt currently hosts a rapidly growing ecosystem of more than 86 multinational and local companies operating in electronics design and embedded systems development. These businesses serve clients across global markets and play a key role in expanding the country’s presence within the semiconductor and automotive software industries.
Dr Amani El-Wasal, Executive Director of the Export Development Fund, confirmed that the fund is expanding its digital capabilities while incorporating additional high-value sectors to support export growth and improve access to financial incentives for technology companies.
Under the new agreement, ITIDA will lead international promotion campaigns, provide technical support, and assist companies seeking to benefit from the export incentive programme. A joint coordination committee will also be established to oversee implementation and ensure the successful rollout of the initiative.
Egypt’s latest semiconductor export incentives demonstrate the country’s ambition to become a leading technology and innovation hub in the Middle East and Africa. By supporting high-value exports, encouraging investment, and strengthening digital infrastructure, Egypt is positioning itself for long-term growth within the global technology economy.