Egypt Expands Export Incentives to Boost Semiconductor and High-Tech Services Growth

H.E. Eng. Raafat Hindy, Minister of Communications and Information Technology, and H.E. Dr. Mohamed Farid, Minister of Investment and Foreign Trade, witnessed the signing of a cooperation protocol between the Information Technology Industry Development Agency (ITIDA)  and the Export Development Fund (EDF),  marking a strategic step to scale Egypt’s high-value technology exports and attract global investment.

The agreement introduces electronics design, semiconductor, embedded systems, and mobile-related services into Egypt’s Export Development Program for a period of seven years, starting FY 2025/2026. The move enables eligible companies to access performance-based export incentives tied to actual export growth and job creation, enhancing competitiveness and accelerating international market expansion.

The initiative comes as Egypt continues to position itself as a cost-competitive, talent-rich destination for advanced engineering and design services, particularly in semiconductor and automotive software domains. The country currently hosts a growing ecosystem of more than 86 multinational and local companies operating in electronics and embedded systems design, serving global clients across key markets.

During the meeting, both ministers reviewed progress on a set of joint digital transformation initiatives aimed at improving the investment climate. These include the development of an integrated digital platform connecting multiple government entities to streamline procedures, unify services, and reduce processing times for investors.

The collaboration also focuses on digitally redesigning the end-to-end investor journey by simplifying licensing processes, enhancing service efficiency, and strengthening transparency. These efforts are expected to improve Egypt’s standing in global ease of doing business indicators and deliver a more seamless, investor-centric experience.

H.E. Eng. Raafat Hindy stated that integrating electronics and semiconductor design services into the Export Rebate Program represents a major step toward advancing high-tech industries and increasing Egypt’s competitiveness in global value chains.

He added that ongoing coordination with the Ministry of Investment aims to build a fully integrated digital investment ecosystem, accelerate service digitalization, and enhance connectivity across government entities, ultimately improving the investor experience and reducing time-to-market.

Hindy further highlighted Egypt’s growing attractiveness as a global hub for electronics and automotive software design, supported by a strong base of highly skilled engineers. He emphasized that the step aligns with the presidential “Egypt Makes Electronics” initiative, which aims to deepen local manufacturing, expand high value-added activities, attract global R&D and design centers, and create high-quality employment opportunities.

For his part, H.E. Dr. Mohamed Farid noted that the inclusion of high-tech services in the Export Development Program reflects Egypt’s strategic direction to support knowledge-based exports and diversify its export base.

He emphasized that the newly introduced incentives are directly linked to measurable export performance, ensuring efficiency and sustainability, while ongoing reforms aim to enhance regulatory agility and attract investments in advanced sectors such as artificial intelligence, cloud computing, semiconductors, and data centers.

Farid also pointed to ongoing efforts to digitize the Export Development Fund’s operations as part of a broader agenda to modernize export incentive frameworks, strengthen governance, and streamline disbursement processes, further improving the ease of doing business in Egypt.

Eng. Ahmed Elzaher, CEO of ITIDA, noted that Egypt’s electronics and embedded systems design sector is witnessing strong momentum, with value-added exceeding 90%, positioning it among the highest-value segments within the global offshoring industry. He added that the sector’s ability to export specialized engineering services reinforces Egypt’s role as a leading destination for advanced technology services.

Dr. Amani El-Wasal, Executive Director of the Export Development Fund, affirmed that the Fund is expanding its digital capabilities and integrating new high value-added sectors to support export growth and facilitate faster access to incentives.

Under the agreement, ITIDA will lead global promotion efforts, provide technical enablement, and support companies in accessing the program, while a joint coordination committee will be established within one month to oversee implementation and ensure effective execution.

Senior officials from both ministries and relevant entities attended the signing.