Egypt, UAE sign agreement to support digital economy growth
Egypt’s Ministry of Communications and Information Technology and the UAE Ministry of Investment signed a MoU with the aim of establishing a broad framework for investment collaboration in digital infrastructure, with a particular focus on data centre projects in Egypt.
The MoU was endorsed by Mohammed Al Suwaidi, the UAE Minister of Investment, and Amr Talaat, the Minister of Communications and Information Technology from Egypt.
The data centres to be established under this agreement could potentially operate at a total capacity of up to 1,000 megawatts.
This is in response to the growing need for data centres in Egypt, driven by the “Digital Egypt” strategy, which is a robust and all-encompassing blueprint aimed at boosting the digital economy through the expansion of digitalization across key regional sectors.
The digital strategy’s goals include easing access to government services in Egypt, broadening digital infrastructure for extensive internet coverage, and fostering digital innovation and entrepreneurship.
Egypt’s data centre market is expected to grow significantly, with its value expected to reach $1.14 billion by 2030, up from $490.62 million in 2022.
This represents an annual growth rate of 12.8% from 2023 to 2030. Egypt’s strategic coastal location and access to submarine cables, along with its 15 operational data centres, offer robust global data connectivity.
The MoU calls for enhancing cooperation by improving ties between governmental and private entities in the UAE and Egypt. It aims to provide incentives and facilities to support relevant initiatives, fostering collaborative efforts and knowledge exchange.
It also reflects the thriving trade ties between Egypt and the UAE, with Egypt being the UAE’s primary trade partner since 2022 and vice versa.
The total trade volume between them from July 2022 to March 2023 was approximately $6.645 billion, including $3.890 billion of imports from the UAE and $2.754 billion of exports to the UAE.
