Egypt is increasingly being considered by Gulf and international companies as a base for regional operations, outsourced services and technology investment, supported by its large skilled workforce, competitive operating costs and expanding digital infrastructure, according to Mohamed Awaad, Egypt Corporate Agent at Ziada DC – UAE.
Awaad said investor perceptions of Egypt are shifting beyond its role as a large consumer market, with companies increasingly assessing the country as a location for software development, marketing, call centres, back-office operations and other digitally enabled services.
He also pointed to growing Gulf investment in major urban and economic developments as an indication of longer-term confidence in the Egyptian market.
Outsourcing and back-office services emerge as key opportunity
Awaad identified outsourcing as one of Egypt’s strongest areas of competitive potential.
The country combines a sizeable professional workforce with foreign-language capabilities and operating, infrastructure and utility costs that can be lower than several other regional markets.
These factors can make Egypt attractive for companies looking to centralise software development, customer support, marketing and administrative functions while serving customers elsewhere in the Middle East.
Regional call-centre operations are already being run from Egypt for businesses serving markets including Saudi Arabia and the UAE, according to Awaad.
Such operations can serve international customers while maintaining a significant part of their workforce and cost base in Egypt.
Remote work strengthens Egypt’s talent proposition
The expansion of remote and distributed working models has further strengthened the case for using Egypt as a regional talent base.
Awaad said Gulf and international companies are increasingly able to employ developers and specialised teams located in Egypt without relocating those employees to higher-cost markets.
That model can give companies access to technical talent while maintaining payroll and other operating expenses in Egyptian pounds.
For Egypt, the trend creates an opportunity to generate technology-sector employment and service exports without requiring every international employer to establish large physical operations immediately.
Government initiatives support offshoring growth
Government programmes aimed at expanding the outsourcing and offshoring sector are also contributing to Egypt’s ability to compete for international operations.
The country has increasingly positioned digital services exports as a source of foreign investment and employment, particularly for younger professionals.
Awaad also highlighted national programmes focused on artificial intelligence and broader digital skills development as important to strengthening Egypt’s future technology workforce.
The longer-term opportunity will depend on whether talent development keeps pace with demand in fields such as software engineering, AI, data and multilingual digital services.
Data centres emerge as another investment opportunity
Awaad also identified data centres as a growing area of potential investment.
Egypt’s geographic location, telecommunications infrastructure and continuing investment in digital networks could support further development of domestic and regional data centre capacity.
The opportunity extends beyond standalone facilities.
Awaad sees potential for large smart industrial and technology zones positioned along major transport corridors, bringing together data centres, technology companies and supporting services within integrated developments.
Such clusters could create stronger links between physical infrastructure, cloud services, enterprise technology and digital businesses.
New urban developments could attract technology investment
Major urban developments and transport corridors, including projects around East Cairo, are also drawing investor interest.
Companies are increasingly evaluating locations based not only on existing demand but also on expected population, commercial activity and infrastructure development.
For technology and service-sector investors, new urban centres can offer opportunities to build operations around more modern connectivity, utilities and business infrastructure.
Geopolitical shifts could influence investment decisions
Awaad said geopolitical developments during the first half of 2026 have also encouraged some international companies to reconsider where they locate investments and operational capacity.
He argued that Egypt could benefit from this reassessment due to its relative stability, strategic geographic position and large labour pool.
Government reforms, investment incentives and regulatory measures aimed at attracting foreign direct investment could strengthen that opportunity, particularly for technology, administrative and service-sector projects.
Telecom infrastructure remains critical
Continued investment in telecommunications and digital infrastructure will be essential if Egypt is to capture a larger share of regional technology operations.
Large outsourcing centres, software teams, cloud services and data centres all depend on reliable, high-capacity connectivity.
The development of new urban communities and technology zones will therefore need to be accompanied by sufficient fibre, data centre capacity, resilient networks and other supporting infrastructure.
