Egypt is preparing to accelerate innovation in artificial intelligence (AI) over the coming years through two key priorities: attracting greater investment in AI-focused data centers and expanding digital skills development and reskilling programmes.
Minister of Communications and Information Technology Raafat Hendy said that attracting investment in AI data centers would provide researchers and innovators with the computing power needed to develop their products within Egypt. The second priority involves expanding digital skills and reskilling programmes to help employees across various sectors adapt to technological advances affecting their professions, while empowering young people to become developers of AI technologies rather than merely users.
Hendy made the remarks during his speech at the opening session of the 30th edition of Cairo ICT, held under the patronage and in the presence of Prime Minister Mostafa Madbouly, with the participation of ministers, senior executives from leading local and international technology companies, investors, and entrepreneurs from across the Arab and African regions.
The minister noted that Egypt began working on artificial intelligence in 2019, adding that the second phase of the National Artificial Intelligence Strategy (2025–2030) has been launched. This phase marks a transition from establishing the foundations of AI to large-scale implementation across six key pillars: governance, technology and applications, data, infrastructure, the ecosystem, and capacity building.
He explained that the National Council for Artificial Intelligence coordinates efforts among various government entities. He also highlighted the Applied Innovation Center’s development of the Arabic large language model “Karnak”, which enables researchers and entrepreneurs to build upon the model and develop products capable of understanding Arabic and serving Arabic-speaking users.
Hendy further noted that Egypt has issued its Responsible AI Charter, establishing a framework to protect privacy and define responsibilities in the development and use of artificial intelligence.
Egypt expands AI applications across government sectors
Following the opening session, Hendy participated in a high-level ministerial panel titled “AI in Action: From Success Stories to Nationwide Impact”.
The session also featured Ahmed Kouchouk, Minister of Finance; Hani Sewilam, Minister of Water Resources and Irrigation; and Mohamed Farid, Minister of Investment and Foreign Trade.
During the discussion, Hendy highlighted an upcoming hackathon to be launched in cooperation with the Ministry of Finance. The initiative will present a series of challenges to startups and innovators, giving them the opportunity to develop innovative technology solutions powered by artificial intelligence.
He added that the Ministry of Communications and Information Technology would coordinate with several other ministries to launch similar initiatives, expanding the application of AI across different sectors.
1 GW of electricity capacity to support data center investments
Hendy revealed that the Ministry of Electricity and Renewable Energy would provide up to 1 gigawatt (GW) of electricity capacity for a number of investment opportunities in the data center industry.
He explained that the targeted locations for data center development offer several competitive advantages, particularly their proximity to international submarine cable landing stations. This would enable investors to capitalize on Egypt’s strategic geographical location and international telecommunications infrastructure to reduce latency, accelerate data transmission, and strengthen opportunities to export data center and AI services to regional and international markets.
The minister stressed that data centers should be viewed from the perspective of digital sovereignty, rather than solely as an investment opportunity.
He warned that failing to keep pace with the rapid global expansion of AI data centers could increase the country’s reliance on external solutions, potentially undermining digital sovereignty.
Hendy emphasized that the government is fully aware of these challenges, noting that the Ministry of Communications is working closely with the ministries of Investment, Electricity, and Finance to maximize the economic returns of this emerging industry.
Egypt advances in global AI readiness rankings
Addressing Egypt’s progress in artificial intelligence, Hendy said the country has made significant strides in international AI readiness indicators.
Egypt has climbed from 111th globally at the launch of its National AI Strategy in 2019 to 52nd place currently, ranking first in Africa and third in the Arab world.
He stressed that Egypt’s AI strategy focuses on developing and manufacturing technology in partnership with manufacturers, rather than simply adopting and using existing solutions.
In this context, he cited the Arabic large language model “Karnak” as an example of Egypt’s growing technological capabilities, demonstrating the potential of its skilled workforce to localize the AI industry, provided that the necessary infrastructure is available.
The minister concluded by emphasizing the importance of investing in digital infrastructure and human capital to strengthen Egypt’s position as a regional hub for artificial intelligence and advanced technology industries.
