© A. Nazif, February 2004 A regional hub Linking the Mediterranean, Europe, Asia and the Arab World. From North-to-South A gateway to Africa. From East-to-West

© A. Nazif, February 2004

A regional hub Linking the Mediterranean, Europe, Asia and the Arab World.

From North-to-South

A gateway to Africa.

From East-to-WestA crossroad of shipping lines and optical fiber cables.

Location


A country of 69 million people

58% of the population under 25. Ranking 17th worldwide in number of

yearly graduates

1,200,000 high school graduates last year.

250,000 university graduates.

Population


Land of civilization

Egypt’s long history and ancient civilization over thousands of years promoted the growth and the development of its remarkable identity and unique characteristics.

Thus Egypt has remained a preferred destination for tourists interested in its cultural heritage as well as its beach resorts.

History – Tourism


A remarkable recovery through

an extensive economic and social reform program

An emerging market with a multitude of opportunities for investments.

A competent and cost-effective labor force.

Economy


21.1

11.19.1 9.3

7.36.2

4 3.62.4 2.7 3.2

0

2

4

6

8

10

12

14

16

18

20

1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 2000/01 2001/2002 2002/2003

Average annual inflation (%)


0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Marketcapitalization

Value oftrading

Million L.E.


Egypt is witnessing its reincarnation into a modern, liberal & private sector led market driven economy.

Investment Climate


The InfrastructureInvesting $80 billion during twenty one years in infrastructure: electricity, airports, highways, new delta in Toshka, new industrial cities, communications & information technology…etc.

The Human BasePreparing young generations by investing in education, skills development and professional training.

The Resources



In September 1999, President Mubarak announced the launch of a national program for technology development.

In January 2000, the Cabinet approved a national plan for CIT and mandated the new Ministry of Communications and Information Technology to execute it.


ACCESSACCESS

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INFORMATION SOCIETYINFORMATION SOCIETY


© A. Nazif, February 20044.9 million new lines since October 1999

11.3 million8.7 millionmillion

3.03.54.04.55.05.56.06.57.07.58.08.59.09.5

10.010.511.0

96 97 98 99 2000 2001 2002 2003

No. of subscribers

No. of fixed lines


No. of subscribers, million

The number of subscribers increased more than eight folds since October 1999

0.08

0.93

2.35

3.44

4.50

5.75

0

1

2

3

4

5

6

1998 1999 2000 2001 2002 2003


Providing dial-up internet access on every Operational

phone-line country wide.

A revenue-sharing model between Telecom-Egypt & the

Internet Service Providers.

$ 0.15/hr of internet usage at home.

940000 of individual phone lines dialing up to the net.


0.30.6

1

1.7

2.5

00.20.40.60.8

11.21.41.61.8

22.22.42.6

1999 2000 2001 2002 2003

International internet traffic increased from20 Mb/s to 1144 Mb/s in 4 years

No. of Internet Users

Million


TE offers PCs to its subscribers through CR outlets.

Payment in monthly installments $15/$17/$20 models financed by the banking sector.

Bundling of ready made s/w applications.

17 companies providing local assembly of PCs.

Market stimulation arises interest in local manufacturing.


Government subsidized internet cafés

To date, there are 615 clubs.

Created in youth centers, public libraries, schools & NGOs.

Focusing on deprived and low income communities.

To-date, more than 100,000 citizens visit the clubs regularly.



A government portal that is citizen-centric.

On-line Government Services.

Information and Document Networking.

More Automation of Internal Functions.


e- Government Portal Launching in January 2004


Basic Skills Development.

Professional Development.

The Smart Schools Initiative.

High Tech / Business Universities.


Telemedicine

Visual inspection and diagnosis by a distant specialist.

Immediate electronic transfer of medical imagery, pathological biopsy and lab results.

Smart Health records

Preventive care. Family planning. Medical history.


Historical sites Natural protectorates

Museums Manuscripts

Using IT to preserve our rich cultural heritage and share it more readily with the rest of the world.


E-legislation ( E-signature – Cyber crime – Taxation – Arbitration ).

A certificate authority and a public key system.

On-line banking and E-Payment.

Promoting IT in SME’s.



Transforming ARENTO into Telecom Egypt by law 19 for the year 1998.

Establishment of the Telecommunications Regulatory Authority by presidential decree number 101 for the year 1998.

A new telecommunication law that promotes: Transparency in licensing. Phased deregulation of services. Establishment of a universal fund to accelerate tariff rebalance.


An Intellectual Property Right Law 82 was passed in 2002 covering software industry.

A draft Law for E-signature establishing the legal status for the electronic signature and documents.

Establishment of IT Industry Development Organization .



A high tech business park with “Smart” infrastructure, investor friendly services and investment incentives.

300 acres (20 minutes from downtown Cairo, 10 minutes from the great pyramids).

53 office plots (336 000 sq.m. of office space). Business center Conference center Exhibition center Press center

Recreational facilities Health center Hotel Shopping and restaurants

Developed and operated by private investors





Establishment of VC fund of 50 million L.E.

Establishment of first incubator on 2500 m2 fully equipped with required infrastructure.

Provides technical, financial and administrative support for start-ups as well as small and medium IT enterprises.


SECC aims at supporting the SW industry in Egypt and has established cooperation with SEI, SW Engineering Institute, in USA.

Capacity Building Software Process Improvement Training Track. Orientation workshops to Executives and Top Management. SEI Courses to qualify Assessors.

Assessment SECC will support top level software companies in Egypt to be

qualified for CMM assessment and accreditation.


Source: The General Authority For Investment & Free Zones

82 147 246

9101202

1791

27373015 3146

0

500

1000

1500

2000

2500

3000

3500

1995 1996 1997 1998 1999 2000 2001 2002 2003

Capital InvestmentMillion L.E.


18 26 69174

292

447

656

817

968

0100200300400500600700800900

1000

1995 1996 1997 1998 1999 2000 2001 2002 2003

Source: The General Authority For Investment & Free Zones

No. of IT Companies

Accumulative Data


1090 15574023

812710697

15280

21552

2572628086

0

5000

10000

15000

20000

25000

30000

95 96 97 98 99 2000 2001 2002 2003 Source: The General Authority For Investment & Free Zones


Source: The Economist Intelligence Unit, 2002

84 84 87 85 8575

56 58 52

0

20

40

60

80

100

1994 1995 1996 1997 1998 1999 2000 2001 2002

%


0

2

4

6

8

10

USA Hong Kong Taiwan Egypt India China Pakistan Algeria

USA Hong Kong Taiwan EgyptIndia China Pakistan Algeria

Source: Business Software Alliance


Cooperation between government and private

sector creating new initiatives that promote the

development of CIT industry.


Training university students and professors on large scale

database programming

International Alliances

Establishing software development center

servicing MEA region

Establishing Cisco regional academies for professional

development


Establishing in Egypt the Regional IP Support Center

International Alliances

Establishing in Egypt a regional manufacturing facility

for telecom equipment in cooperation with local

companies

Establishing in Egypt the Regional Network Support

Center


Establishment of a center of excellence for software

engineering

Providing software tools for the academic sector and

government at reduced prices. New e-government initiative.

An ambitious training program to prepare world

standard software development professionals

International Alliances Cont’d

Establishment of a regional mobile IP development and

training center


The objective is to create export oriented industries to compensate for the imports of Technology

Companies Participating in the execution of the CIT Master Plan commit to substantial investments in technology transfer activities.

Investments focus on S/W development, technical Support, training and business process outsourcing.


Over 300 S/W houses. Largest media-city in MEA. High speed optical connections to all countries.

Benefit from:

Professional S/W engineers certified by IBM, ICL, Oracle,

Nortel, Qualcomm, Microsoft, Lucent and Cisco

At very cost-effective salaries


Contact Centers Business Opportunitiesin Egypt

Why in Egypt?– Quality Focused.

– Human Resources.

– Telecommunications Infrastructure.

– Geographic Location.

– Government Incentives.

“CAGR for contact centers outsourcing in MEA will grow by 24% over the next 4 years. (14% for EMEA)”*

*Source: Datamonitor 2003


As a result of successful G2B relations, high-level political support and a positive investment climate:

Foreign companies are creating win-2-win partnerships with Egyptian companies


Results of UK Trade Mission IFebruary 2002

• Work together towards regional market• Provide support to UK and Egyptian IT projects• NBS strength in Systems design, project management , and

quality assurance• Allied Soft in coding, localization and implementation

Allied Soft & NBS Partnership


Advanced Computer Technology (ACT)

Allied Consultants

Arabize

Arabia Inform

Barkotel

Cairo Software Services

Digital Systems

Egypt Soft Commerce

Global Geobits

Prima Soft

Raya Call Center

Raya Software

RDI

SICC

Softlock

TEA Computers S.A

T. E Data

Xceed

• Hiteknofal

•Industrial Systems

•IT Worx

•Link dot Net

•Meditech IT Solutions

Microtech

Mist

Net Wave

Nozha IT


Egypt … The Cradle of Civilization is

Quickly Becoming the Center for IT and

Telecommunications in the Middle East

and North Africa

This presentation is available at www.mcit.gov.eg

www.egytrademission2uk.com

Documents

© A. Nazif, February 2004 A regional hub Linking the Mediterranean, Europe, Asia and the Arab World. From North-to-South A gateway to Africa. From East-to-West