By 2030, Egypt aims to become a major hub for artificial intelligence (AI), with projections indicating that 36% of its population will integrate AI into their daily lives. This ambitious vision is outlined in the second edition of Egypt’s AI strategy report (2025-2030), released on January 16, 2025, marking the beginning of a new technological era for the country.
The report, issued by Egypt’s National Council for Artificial Intelligence (AI), forecasts the production of 30,000 AI specialists and the establishment of 250 successful AI companies. Additionally, academic research in the field is expected to surge, with AI-related publications projected to reach 6,000 by 2030.
Aiming to lead AI development
Egypt’s strategy focuses on becoming a regional leader in AI, driving industrial growth, and promoting collaboration both locally and internationally. It aims to build a robust AI framework to strengthen digital infrastructure, boost economic development, and create job opportunities across various sectors. According to the report, a key objective is to establish a competitive AI industry supported by governance, technology, data, and sustainable development to ensure long-term growth in Egypt’s digital economy.
“Establishing a national regulatory framework for AI is essential, but it’s not just about creating a regulator. It’s about how we use it and what we do with it,” said Marco Mamdouh, Professor of Artificial Intelligence and Computer Engineering at a private university east of Cairo.
Building the foundations for growth
Mamdouh noted the importance of fostering AI-driven startups to attract foreign investments, thereby strengthening Egypt’s economy. While a regulatory framework is necessary, he stressed that the focus should be on the practical application of AI initiatives and how regulations can encourage innovation.
In the short term, Egypt’s AI strategy focuses on establishing an ethical framework, activating an AI ethics charter, and creating a regulatory body to engage in international AI discussions. Efforts will be made to improve sectoral performance by applying AI across industries and enhancing data accessibility through stronger local frameworks. Building a robust AI infrastructure, including cloud services and innovative business models, is a key priority, as is fostering a supportive ecosystem for local startups and SMEs through increased venture capital investment and skills development.
Positioning Egypt as a regional hub
In the long term, Egypt’s AI strategy aims to boost the telecommunications sector’s contribution to gross domestic product (GDP) to 7.7% and ensure that 26% of the labor force benefits from AI tools. The country also aims to position itself as a regional hub for AI research collaboration.
The report provides a SWOT analysis of Egypt’s AI strategy. Among the strengths are the presence of skilled researchers, engineers, and institutions like the National Research Center and the Academy of Scientific Research. The growing number of Egyptian students pursuing information and communication technology (ICT) courses and the expansion of computer science and IT programs in public colleges also present promising factors.
However, the strategy identifies weaknesses such as a shortage of AI scholars, insufficient research planning, limited data access, and inadequate research infrastructure.
In fact, Mamdouh pointed out two key challenges: aligning with international AI regulations, especially those in the US and Europe, and the lack of sufficient infrastructure for maintaining AI data centers.
Developing tailored AI models for local needs
Mamdouh suggested that Egypt should develop AI models tailored to local needs. He emphasized that many foreign AI models may not suit Egypt’s specific challenges. “Minimizing the use of foreign AI models is important,” Mamdouh said. By focusing on local solutions, Egypt could not only advance domestically but also lead the way in the MENA and African regions.
Despite challenges, the opportunities for AI in Egypt are abundant. AI could enhance government efficiency, address gaps in key sectors such as healthcare, agriculture, and transportation, and improve Arabic language processing, particularly in machine translation and text summarization. However, concerns about migration of skilled human capital and limited data availability remain significant threats.
Mamdouh also stressed the importance of collecting high-quality local datasets to develop AI models that address Egypt’s unique challenges. For sectors like healthcare, agriculture, and smart cities, collecting context-specific data is crucial for effective AI development.
“Creating AI models tailored to local needs is essential for addressing Egypt’s challenges,” Mamdouh explained.
Security concerns
However, Mamdouh also raised concerns about AI data protection. While Egypt has the Personal Data Protection Law (PDPL), he argued it doesn’t fully address AI-specific data processing needs.
Without robust data protection regulations, Egypt risks facing ethical dilemmas, particularly in sensitive sectors like healthcare and finance. Additionally, reliance on foreign AI models and cloud platforms could pose security risks, undermining Egypt’s control over its data. “Sensitive data should not be processed on foreign servers,” he emphasized.
The road ahead
Mamdouh recommended expanding AI, machine learning, and data science programs in universities, suggesting that these programs be integrated into various faculties to reach a broader audience. “AI requires more than just coding skills—its main challenge lies in collecting and training high-quality datasets,” he noted.
He also advocated for forming international AI alliances with leading global institutions, facilitating knowledge exchange and collaborative research. “Collaborating with top AI institutions will enable Egypt to establish itself as a regional AI leader,” Mamdouh concluded.
