Egypt's National AI Strategy and New Partnerships

Ahmed Giza
Ahmed Giza ExitStrategyWorld MENA Editor
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Egypt is one of the most industrialized countries in Africa. While it does not hold such a high ranking in the Middle East for the technology sector compared to its GCC allies the UAE or Saudi Arabia, the potential for high returns and profits on industrialization is within reach--despite stubbornly high inflation of the Egyptian pound. European Union-based firms announced up to 40 billion Euros in agreements with Egypt during an investment forum last week, and the Gulf states are investing in residential real estate, industrial zones and the New Administrative Capital.


AI is likely to join these burgeoning fields in Egypt.


While AI was not so promising for the MENA region just a few years ago, its mass applications and economic opportunities are fast becoming a reality, with the Arabic language presently underutilized in AI compared to its vast market potential--often for potentially political reasons. Enter Egypt with its 110 million Arabic-speakers as part of the Arabic Large Language Model (LLM) solution. As A.I has become a topic on the agenda among all international bodies and organizations, its socio-political and economic potential is not being ignored but actively encouraged by the Egyptian government.


Photo credit: Egypt power and Internet grid image

Uploaded to iStock by Waeruslan Waedaraseh March 2024


In 2019, the Arab Republic of Egypt, while lagging behind other countries in the field of AI, decided to take the first steps into incorporating AI into policy, with the establishment of the National Council for Artificial Intelligence. This council featured government representatives and figures, with the presence and collaboration of academics, private sector IT developers and more. It is headed by the Ministry of Communications and Information Technology, led by HE Dr. Amr Talaat, an academic with applied experience in industry for IBM Egypt.


Its responsibilities according to its website, includes the following.


- Outline the National AI Strategy


- Provide follow up mechanisms for implementing the National AI Strategy in a way that studies and adopts international best practices in the field


- Identify national priorities in the area of AI applications


- Recommend national policies and recommendations pertaining to the technical, legal and economic framework of AI applications


- Promote cooperation both regionally and internationally which includes exchanging best practices and expertise across the Middle East and North Africa (MENA)


- Identify AI applications that provides smart, safe and sustainable solutions and services


- Review international protocols and agreements in the field of AI


- Recommend capacity building programs and boost the skills and knowledge of national organizations

EgyptMinistryofCommunicationsIT.jpg

Minister of Communications and Information Technology HE Dr. Amr Talaat

(Photo from the Ministry of Communications and IT website)


The council is also, at least according to their press statements, actively networking domestically and abroad, with representatives attending local, regional, and international summits regarding artificial intelligence. For example, in the first half of 2024, the council partook in 2 regional summits for AI and one international one, while hosting a forum for the incorporation of AI into Egyptian government functions.


They have achieved preliminary physical results as well--the first data center for government usage in Egypt opened in May 2024, with the facility occupying a sizeable chunk of land coming to around 2.35 hectares. The government center should help in analyzing and processing data for Egypt, and could offer its services to the wider MENA region. According to the Minister of Communications and Information Technology, the center seeks to provide three goals, which are “providing easier services to citizens, supporting youth to compete effectively in the local and international domestic market, and encouraging entrepreneurship and enhancing innovation".


A.I is seen as an important cornerstone, playing an important role in the economic projects of the country. Considering the severe inflationary economic crisis, for examples, here are some key figures:


By 2030, the contribution of AI to the Egyptian economy should be 7.7%., for reference, the Suez Canal alone contributes 2% to the Egyptian GDP.


Egypt is also interested in expanding the role of FinTech, with the Central Bank investing billions of Egyptian pounds (EGP) into several platforms and projects. Egypt is regarded as No. 1 in the Arab World in terms of electronic payment systems and digital wallets on smartphones.


The early results from the Ministry and the government's efforts in this space cannot be denied, with Egypt jumping 7 ranks in the Global AI index in a year.


The involvement of AI is not just limited to a single field of MENA data centers including government ministry cloud services. There are applications for it across many fields in Egypt, including medicine, sports, and education from the youth to university levels. There can be both positive and negative connotations for Arabic LLMs, which the Egyptian government is trying to address, but that is a topic for another article.