Egypt’s Information Technology (IT) sector is poised for rapid expansion, with market value expected to grow from $3.5 billion in 2025 to $9.2 billion by 2031, according to a new report by Fitch Solutions. The study, “Accelerating Egypt’s Digital Transformation Through Public Investment and Mega Projects”, highlights robust public investment, improving economic fundamentals, and large-scale urban development as the key drivers of this growth.
Fitch identifies software and IT services—particularly cloud computing, enterprise solutions, and managed services—as the main growth engines. Demand is being fueled by the government’s digital transformation agenda, private sector modernization, and Egypt’s efforts to build a mature, globally competitive digital economy.
Mega projects such as the New Administrative Capital, New Alamein, and Ras El-Hekma development were spotlighted as catalysts for IT demand. These next-generation smart cities require advanced digital infrastructure, including data centers, IoT systems, AI integration, and secure cloud platforms, creating unprecedented opportunities for IT vendors and service providers.
To support this momentum, Egypt has allocated 13 billion EGP ($256 million) in public investment for digital infrastructure in the current fiscal year. Key initiatives include:
- Deployment of 40,000 new mobile towers to boost nationwide connectivity.
- Expansion of digital government services and cybersecurity capabilities.
- Training programs for over 600,000 IT professionals to meet industry demand.
The report also noted a shift in enterprise import patterns toward cloud-based solutions and specialized technologies, signaling a maturing digital economy. With real GDP growth forecast to average 4.3% annually between 2025 and 2029, Fitch expects both consumer spending on digital services and business investment in IT modernization to rise significantly.
“These projects reflect the government’s vision for digitally advanced urban centers and will significantly increase the demand for smart infrastructure and software-driven services,” Fitch said.
By combining public investment, private sector innovation, and large-scale urban developments, Egypt is positioning itself as a regional IT hub with strong appeal for international investors.
