Egypt Unlocks Semiconductor Export Incentives

Egypt has paved a deeper path to its digital transformation with the signing of an agreement between the Information Technology Industry Development Agency (ITIDA) and the Export Development Fund (EDF).

This introduces electronics design, semiconductor, embedded systems, and mobile-related services into Egypt’s Export Development Programme for a period of seven years starting FY 2025/2026. Companies that qualify can now earn rewards for exporting more and creating jobs. The more they grow their exports and hire, the more support they get. This helps them compete abroad and expand into new markets faster.

Eng. Raafat Hindy, Minister of Communications and Information Technology, and Dr Mohamed Farid, Minister of Investment and Foreign Trade marked this strategic step to scale Egypt’s high-value technology exports and attract global investment.

Eng. Hindy stated that integrating electronics and semiconductor design services into the Export Rebate Programme 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 digitalisation, 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 emphasised 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.”

Meanwhile, Dr Farid noted that the inclusion of high-tech services in the Export Development Programme reflects Egypt’s strategic direction to support knowledge-based exports and diversify its export base. “Newly introduced incentives are directly linked to measurable export performance. This ensures 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 centres.”

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

The ministers further 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.

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 per cent, positioning it among the highest-value segments within the global offshoring industry.” He observed that the sector’s ability to export specialised engineering services reinforces Egypt’s role as a leading destination for advanced technology services.

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.

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.

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 programme. A joint coordination committee will be established within one month to oversee implementation and ensure effective execution.