On July 6–7, 2025, the BRICS Summit in Rio highlighted AI governance as a core topic. As Chinese AI firms like DeepSeek expand globally, AI is no longer just a domestic growth tool—it's a strategic export. BRICS countries are deepening cooperation with China in AI regulation, innovation, and deployment. This article focuses on Egypt, now a key hub in China's global AI push.
For years, AI and Africa seemed like an unlikely pairing.
Stereotypes of poverty, fragile infrastructure, and lagging technological development have long framed the region in global discourse, making the idea of "AI going to Africa" sound improbable. But the story is changing. In 2025, a new investment wave is quietly gaining momentum in the Middle East and North Africa (MENA).
According to Egypt's General Authority for Investment and Free Zones (GAFI), more than 2,800 Chinese enterprises have invested over $8 billion in Egypt as of mid-2025. These investments span industries like automotive, textiles, electronics, and renewable energy, but AI is fast becoming the standout sector. On June 23, Chinese Commerce Minister Wang Wentao met with Egypt's Minister of Investment and Foreign Trade, Hassan El-Khatib, in Beijing. The two sides signed multiple cooperation agreements that formally incorporated AI into their strategic partnership, alongside electric vehicles, electronics manufacturing, and clean energy. Less than a week later, on June 29, the Egyptian delegation visited Huawei Digital Power to discuss collaborations in energy storage and smart energy management. Egypt is no longer viewed as a passive recipient of foreign technology. It has become a pivotal market in China's global AI expansion.
As Africa's second-largest economy, Egypt is now accelerating its digital transformation. The domestic market is expanding rapidly, but perhaps more importantly, the country's role as a regional tech hub is increasingly significant. With its dual identity as both "the gateway to Africa" and "the center of the Arab world," Egypt holds diplomatic channels to Europe and the Gulf while serving as a springboard into sub-Saharan Africa.
For Chinese AI firms with global ambitions, Egypt is evolving into a strategic outpost—a place where market potential and geopolitical positioning intersect.
1. The AI"Golden Triangle": Policy, Talent, and Infrastructure
Egypt's emergence as an AI hotspot didn't happen by accident. It's the result of long-term planning across three essential pillars: proactive government policy, a growing talent pipeline, and continuous upgrades to the country's digital infrastructure. Together, these factors have created a favorable ecosystem for AI development and commercialization.
1.1. National Strategy Lays the Groundwork
Egypt has demonstrated notable foresight in promoting AI, embedding it into the country's broader digitalization agenda. In 2017, the government launched the "Digital Egypt" initiative, aimed at improving public services through unified digital platforms, while also expanding digital skills training and establishing innovation hubs to nurture AI startups. This early-stage commitment set the tone for deeper policy engagement.
By 2021, Egypt became the first country in the MENA region to issue a comprehensive five-year National AI Strategy (2021–2025). The strategy prioritized the integration of AI into sectors like education, healthcare, and agriculture, and placed special emphasis on building international partnerships, improving data infrastructure, and training local talent. In 2025, the government raised the stakes further by introducing a new 2025–2030 AI plan. This updated strategy includes a dedicated fund ranging from $430 million to $860 million, targeting AI enterprise growth, venture capital support, and public awareness initiatives to ensure that AI doesn't remain an elite technology but becomes part of the country's industrial and social fabric.
Regulatory policy has also shifted to encourage foreign participation while safeguarding national data security. Egypt now allows export-oriented AI companies to operate within its free zones, offering tax breaks, expedited customs clearance, and fast-track company registration. Meanwhile, the enactment of the Personal Data Protection Law (Law No.151 of 2020) has introduced a structured data compliance regime, limiting unauthorized data transfers across borders. Complementing this, the National Telecommunications Regulatory Authority mandates that any cloud services operating in Egypt must be registered locally and comply with domestic supervision. For global tech firms, these policies are both a challenge and an opportunity: while localization is required, early movers that invest in local data centers gain a first-mover advantage in securing regulatory trust.
On the international stage, Egypt has positioned itself as a participant in global AI governance. As a member of the African Union, the country is actively advancing the continental AI development strategy. In June 2025, China and Egypt signed additional bilateral agreements focused on AI research, the digital economy, and cross-border cooperation. For Chinese enterprises looking to expand into Egypt, this signals an increasingly collaborative environment that reduces institutional friction and opens new avenues for partnership.
1.2. Egypt's AI Talent Pipeline Gains Traction
Talent is often the limiting factor in AI expansion, but Egypt has managed to cultivate one of Africa's most competitive talent pools. According to the 2025 Africa AI Talent Readiness Index, published by Qhala and Qubit Hub in April, Egypt ranks second on the continent, tied with Tunisia, with a score of 51.80. This is not accidental—it reflects years of investment in technical education and digital literacy.
Egypt currently has 1,224 developers per million residents, and more than 53% of the population possesses basic ICT skills. These figures place Egypt well ahead of many neighboring countries and provide a solid foundation for the growth of its AI ecosystem. Recognizing the strategic importance of talent, the government has made "skills development and capacity building” the first priority in its 2025–2030 AI strategy. The goal is not just to train coders but to develop internationally competitive AI professionals.
In May 2025, President Abdel Fattah el-Sisi instructed the government to explore the integration of AI into the national school curriculum, extending AI education from universities into primary and secondary schools. This early-stage intervention is expected to widen the country's talent pipeline, ensuring that future generations are equipped to participate in—and shape—the AI economy.
1.3. Infrastructure Expansion Fuels AI Deployment
Alongside policy and talent, infrastructure is the third critical element powering Egypt's AI transformation. The government has made significant investments in 5G and broadband networks, supported by $2.7 billion in funding and multiple international partnerships. By the end of 2024, all major telecom providers had obtained 5G licenses. Over 12.7 million households, including many in rural areas, now have fixed internet access. Average broadband speeds have increased 13-fold, and Egypt's broadband services are now the second most affordable in Africa—a key factor driving digital inclusion.
Beyond connectivity, Egypt is building core computing infrastructure to support its AI ambitions. In April 2024, the government launched the country's first national data and cloud computing center near Ain Sokhna, positioning it as a future hub for AI deployment and big data analytics in the region. However, as AI models become more compute-intensive, the question of energy consumption looms large. Global studies predict that AI-related energy demand will increase by 50% by 2027, with a potential cumulative rise of 165% by 2030. Egypt is actively addressing this by leveraging its renewable energy resources. Projects like the Benban Solar Park in Aswan and offshore wind farms along the Red Sea are not just about sustainability—they are about providing the green energy backbone necessary to power the next generation of AI systems.
2. AI in Practice: Chinese Firms Accelerate Deployment in Egypt
For a country with over 110 million residents—where nearly 60% of the population is under the age of 24—AI isn't some abstract frontier technology. It's becoming part of daily life, influencing how people shop, communicate, and interact with the world. Chinese firms, known for their expertise in merging AI with real-world applications, are moving quickly to seize this opportunity and are already playing a central role in Egypt's digital transformation.
2.1. Smartphones as Everyday AI Terminals
According to Omdia, Egypt's smartphone shipments rose by 34% in the first quarter of 2025 compared to the previous year. This growth has been driven by new government policies to crack down on grey market devices, a gradual stabilization of the macroeconomic environment, and a resurgence in local manufacturing.
For young Egyptians, smartphones are not just communication tools—they're the entry point to digital life. In this market, Chinese brands dominate. OPPO ranks second only to Samsung in market share, while Realme, OPPO's sub-brand, also holds a top position among Chinese vendors. In late 2024, OPPO began local production in Egypt, further embedding itself in the market. The company's new Find N5 model, launched locally, comes equipped with ColorOS 15, which integrates AI features such as intelligent search, real-time call summaries, AI-assisted note-taking, and document recognition. These capabilities are quickly becoming part of how young Egyptians experience their smartphones.
2.2. Social Apps: Behind the Scenes of Human Connection
If smartphones are the gateway, social apps are the main stage. As of July 2024, Egypt had 76.9 million mobile internet users and 110.3 million mobile subscribers, with a penetration rate of 99.1%. For the younger generation, short videos, voice chats, and virtual communities have become central to social interaction. These apps are no longer just entertainment channels—they are cultural spaces and emotional touchpoints.
Chinese tech companies are leading this space as well. Newborn Town Inc. has seen rapid expansion in the MENA region, with its 2024 revenue reaching $5.09 billion, up 53.9% from the previous year. The MENA region alone contributed a 60% increase in revenues, making it the company's fastest-growing overseas market. BlueCity's success is closely tied to its deep integration of AI. The company's proprietary algorithm, Boomiix, improves voice matching and video recommendations, while large language models such as DeepSeek-R1 refine user preference prediction and real-time emotional response analysis. This allows for a seamless experience where content, connection, and emotion form a closed-loop system, customized for the local digital culture.
2.3. Smart Home Devices: AI at the Consumer Level
The home appliance market in Egypt is also undergoing transformation. According to Statista, the market is expected to reach $7.31 billion in 2025, with a compound annual growth rate of 9%—outpacing both North America and Europe. This growth reflects a shift toward smarter, AI-powered devices, especially among younger, upwardly mobile households.
Haier is one of the first Chinese appliance brands to capitalize on this trend. From its initial entry into the MENA market in 1998 to the launch of Haier Egypt Ecological Park in 2024, the company has consistently followed a "localization + intelligence" strategy. The $160 million facility covers 200,000 square meters and has started production of air conditioners, washing machines, and TVs. Inside the plant, Haier has deployed high-precision BIM modeling and digital twin systems to optimize factory operations. On the product side, Haier offers AC units that operate reliably in 55°C heat—ideal for Egypt's climate—along with MRV-5 systems that use AI to manage energy efficiency and provide real-time diagnostics.
2.4. Smart Cities: Building the Digital Backbone
Egypt's New Administrative Capital, a $58 billion megaproject, is often described as Africa's first smart city. But this is not just a rebranding of urban infrastructure—it's a wholesale redesign of how a city operates. The new capital features integrated digital systems for traffic management, public safety, lighting, energy distribution, and data analytics. AI sits at the core of these systems, enabling predictive analytics for municipal services, real-time city management, and cost-efficient governance.
Chinese companies are heavily involved in these upgrades. PowerChina is leading the development of a 1.1GW wind farm with AI-enhanced forecasting and grid integration. ZTE, in partnership with Telecom Egypt, is rolling out fiber-optic networks to 1,500 villages, expanding digital services to millions and supporting sectors like agriculture, education, and rural e-commerce. Huawei, meanwhile, has established North Africa's first OpenLab in Cairo, launched an ICT academy, and initiated talent competitions to accelerate the local tech ecosystem. From infrastructure to education, Chinese AI firms are becoming embedded in Egypt's broader social and technological transformation.
3. Conclusion: The Next Chapter for China's AI Expansion
As China and Egypt deepen their strategic ties, Egypt is moving from a follower to a frontrunner in AI deployment across the MENA region. For Chinese enterprises, the market is no longer just about exporting products—it's about building ecosystems that integrate AI into daily life, from smartphones and home appliances to mobility, social media, and urban governance.
In Egypt, where ancient civilizations meet digital futures, Chinese AI companies are discovering not just new markets, but new starting points for global growth. Together with local partners, they are opening up new scenarios, forging new collaborations, and creating shared value for a digital-first era.