UAE and Egypt sign partnership agreement to accelerate development of digital economy

The Ministry of Investment of the UAE and the Ministry of Communications and Information Technology of Egypt have signed a Memorandum of Understanding (MoU) aiming to establish a framework for investments in digital infrastructure with a focus on data center projects in Egypt.

The agreement was signed by His Excellency Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, and His Excellency Dr. Amr Taalat, Minister of Communications and Information Technology of Egypt.

Data centers to be developed under this agreement can reach a total capacity of 1,000 megawatts. Egypt’s increasing need for data centers is propelled by the country’s ‘Digital Egypt’ strategy, a robust and comprehensive plan to foster the digital economy by advancing digitalization across major regional industries. The digital strategy also aims to simplify the process of accessing government services in Egypt, expand digital infrastructure to ensure widespread internet access, and promote entrepreneurship and digital innovation among citizens.

The Egypt data center market is set for significant growth, with projections indicating a rise to USD 1.1 billion by 2030 from its 2022 valuation of USD 490 million. This forecast corresponds to a compound annual growth rate of 12.8 percent during the forecast period spanning from 2023 to 2030. With 15 operational data centers, Egypt leverages its strategic location in coastal areas, capitalizing on access to subsea cables that provide robust global data connectivity.

The MoU between the UAE and Egypt focuses on creating strong and effective collaboration by building bilateral relationships between public and private organizations. The agreement additionally proposes the implementation of incentives to support pertinent initiatives and aims to facilitate the exchange of knowledge.

H.E. Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, commented: “This collaboration builds on the longstanding bilateral relations between the two nations, which are underpinned by the shared visions of our leadership on fostering economic impact. The signing of this agreement represents a significant milestone in driving innovation and growth, allowing us to contribute to the digitalization of Egypt as well as the nation’s preparedness for the future.”

H.E. Dr. Amr Taalat, Minister of Communications and Information Technology of Egypt, said: “The forms of cooperation between the two countries involve enhancing the investment partnership through collaborative projects, facilitating investments in data center projects in Egypt, and jointly assessing the technical and investment feasibilities for developing these projects. The initial phase aims to achieve a capacity of 100 megawatts, with a future target of 1,000 megawatts. Additionally, proposed incentives to support further investment in data center projects will be discussed. Both sides will exchange general project-related information, and explore cooperation in investment and policy research, development of certifications, research and development, and innovation within data center projects. A joint action plan and mechanisms for monitoring the memorandum’s implementation will also be developed through cooperation between the two sides.”

The signing of the MoU took place against the backdrop of strong trade relations between the two countries. The UAE is one of Egypt’s primary trading partners, with total trade volume between July 2022 and March 2023 amounting to approximately USD 6.645 billion. This included USD 3.890 billion in imports from the UAE and USD 2.754 billion in exports to the UAE.

About the Ministry of Investment of the UAE

Established in July 2023, the Ministry of Investment aims to accelerate foreign direct investment into the country and further strengthen the UAE’s position as a globally leading investor.