Egypt’s outsourcing exports hit $5.2Bn in 2025
CAIRO, EGYPT — Egypt’s outsourcing and digital services exports reached $5.2 billion in 2025, with the government targeting $6 billion by the end of 2026 and $8 billion by 2028, as the information technology (IT) sector posted 20.3% growth in the third quarter of the prior fiscal year — the highest quarterly growth rate the sector has recorded.
According to a report from Ahram Online, Minister of Communications and Information Technology Raafat Hendy disclosed the figures at a meeting with the Digital Transformation Committee of the American Chamber of Commerce in Cairo.
Egypt’s $5.2Bn milestone; IT sector posts record 20.3% quarterly growth
Egypt’s IT sector now contributes approximately 6% of gross domestic product (GDP), with the government targeting an 8% contribution by 2030, as the $5.2 billion outsourcing export figure positions the sector as the primary driver of Egypt’s digital economy growth.
The 20.3% quarterly growth rate cited by Hendy was the highest on record for the sector, reflecting the momentum behind a government-led expansion strategy built on five pillars: digital transformation, local technology development and job creation, digital infrastructure, digital capacity building, and legislation and governance.
The government signed 55 agreements with local and international firms in 2025, creating an expected 75,000 jobs over three years as Egypt positions itself as a cost-competitive outsourcing hub for global BPO operators seeking Arabic-language and multilingual delivery capacity.
Hendy’s meeting with the American Chamber of Commerce’s Digital Transformation Committee formed part of a sustained government effort to attract international investment into Egypt’s technology export sector.
Egypt’s move from $3.3 billion in digital exports in 2018 to $5.2 billion in outsourcing exports alone by 2025 reflects a sector that has scaled significantly — and the $8 billion target for 2028 sets a benchmark that requires consistent international firm attraction and talent pipeline investment to reach.
“The Ministry’s work is centered around five key pillars: digital transformation, the local development of technology and job creation, digital infrastructure, digital capacity building, and legislation and governance,” said Raafat Hendy, Minister of Communications and Information Technology, Egypt.
AI strategy, Arabic LLM, and infrastructure drive Egypt’s export diversification
Egypt launched the second edition of its National Artificial Intelligence (AI) Strategy in early 2025, positioning AI-enabled digital services as the growth category that will carry the sector beyond cost-competitive outsourcing into higher-value delivery.
The Applied Innovation Center (AIC) developed “Karnak,” an Arabic large language model (LLM), making Egypt one of the few countries in the Arab world with a domestically built, state-supported AI foundation model positioned for commercial outsourcing applications.
The government’s five-pillar framework explicitly includes legislation and governance as structural requirements alongside technical investment — a policy design intended to address the regulatory certainty that international outsourcing clients require before committing to large-scale delivery operations in a new market.
For global BPO operators and IT services buyers evaluating North Africa and the Arab world as delivery destinations, Egypt’s $5.2 billion export base and domestic Arabic LLM development signal a market that is growing in scale and moving up the value chain simultaneously.
“Egypt launched the second edition of the National AI Strategy in early 2025, while the Applied Innovation Center developed the Arabic LLM ‘Karnak,'” said Hendy.
For offshore operators and buyers evaluating Egypt’s outsourcing market, the government’s $8 billion target by 2028 and Arabic AI infrastructure development position the country as expanding beyond cost arbitrage — toward the AI-enabled, language-specific service delivery that enterprise clients are increasingly requiring from offshore partners.
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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