Egypt Expands Export Incentives to Boost Semiconductor and High-Tech Services Growth

Egypt has expanded its export incentive framework to include electronics design, semiconductors, embedded systems and mobile-related services, in a seven-year extension to the Export Development Program beginning in fiscal year 2025/2026. The agreement, signed between the Information Technology Industry Development Agency (ITIDA) and the Export Development Fund (EDF), was witnessed by H.E. Eng. Raafat Hindy, Minister of Communications and Information Technology, and H.E. Dr. Mohamed Farid, Minister of Investment and Foreign Trade. The move enables eligible companies to access performance-based export incentives tied to actual export growth and job creation.

Key quote

"Integrating electronics and semiconductor design services into the Export Rebate Program represents a major step toward advancing high-tech industries and increasing Egypt’s competitiveness in global value chains," said H.E. Eng. Raafat Hindy.

Details and context

The memorandum of cooperation tasks ITIDA with leading global promotion, providing technical enablement and supporting companies to access the program, while the EDF will administer incentives. A joint coordination committee will be established within one month to oversee implementation and ensure effective execution. The incentives are performance-based and explicitly linked to measured export expansion and job creation, according to EDF and ministry statements.

• Scope: electronics design, semiconductor, embedded systems and mobile-related services included for seven years starting FY 2025/2026.
• Ecosystem: Egypt hosts a growing cluster of more than 86 multinational and local companies operating in electronics and embedded systems design.
• Value proposition: ITIDA CEO Eng. Ahmed Elzaher said the sector's value-added is "exceeding 90%," positioning it among the highest-value segments within the global offshoring industry.

H.E. Dr. Mohamed Farid framed the inclusion of high-tech services as part of a strategic shift to boost knowledge-based exports and diversify Egypt’s export base. "The newly introduced incentives are directly linked to measurable export performance, ensuring efficiency and sustainability," he said, adding that reforms aim to enhance regulatory agility and attract investments in advanced sectors such as artificial intelligence, cloud computing, semiconductors, and data centers.

Officials also reviewed a set of joint digital transformation initiatives designed to improve the investment climate. These initiatives include an integrated digital platform connecting multiple government entities to streamline procedures, unify services and reduce processing times for investors, plus a digitally redesigned end-to-end investor journey to simplify licensing and strengthen transparency. Dr. Amani El-Wasal, Executive Director of the Export Development Fund, said the Fund is "expanding its digital capabilities and integrating new high value-added sectors to support export growth and facilitate faster access to incentives."

Outlook

Authorities say the package is intended to accelerate international market expansion for Egypt’s high-tech services and attract R&D and design centres aligned with the presidential "Egypt Makes Electronics" initiative. With ITIDA leading promotion and a joint committee in place to monitor rollout, the next 12 months will be critical to translate the seven-year program into measurable export gains, new jobs and faster time-to-market for local technology firms.