Fitch Solutions: Egypt’s IT Market Poised to Surge to $9.2 Billion by 2031

Egypt’s Information Technology (IT) sector is on track for substantial expansion, with the market projected to grow from $3.5 billion in 2025 to $9.2 billion by 2031, according to a new report released by global analytics firm Fitch Solutions.

The report, titled “Accelerating Egypt’s Digital Transformation Through Public Investment and Mega Projects”, credits the anticipated surge to improving macroeconomic fundamentals, robust public investments in digital infrastructure, and the easing of economic pressures that previously slowed growth.

Fitch identifies software and IT services as the primary engines of growth, citing rising demand for cloud computing, enterprise solutions, and managed services. The report notes that the government's digital transformation agenda, coupled with private sector modernization, is creating a favorable environment for domestic and international IT vendors.

“The momentum of Egypt’s digital transformation is undeniable. Government-led initiatives, combined with mega urban development projects, are catalyzing unprecedented demand for smart infrastructure and IT services,” the report stated.

Large-scale national projects,  including New Administrative Capital, New Alamein, and the Ras El-Hekma development, were spotlighted as critical drivers of digital infrastructure demand. These projects are designed as next-generation smart cities, requiring cutting-edge IT ecosystems spanning data centers, IoT, AI integration, and secure cloud platforms.

“These projects reflect the government’s vision for building digitally advanced urban centers and will significantly increase the demand for smart infrastructure and software-driven services,” Fitch noted.

The report also highlighted a shift in import patterns toward cloud-based solutions and specialized technologies, reflecting Egypt’s maturing digital economy and evolving enterprise needs.

Fitch Solutions forecasts real GDP growth averaging 4.3% annually between 2025 and 2029 — a rate that underpins long-term expansion in the IT market. The favorable economic outlook is expected to support rising consumer spending on digital services, along with greater business investment in IT modernization.

Egypt has allocated 13 billion EGP ($256 million) in public investments for digital infrastructure during the current fiscal year. This includes funding for: the deployment of 40,000 new mobile towers to strengthen nationwide connectivity, expanding digital government services, enhancing cybersecurity, and launching training programs for over 600,000 IT professionals to meet industry demands.

These initiatives are part of a broader national push to develop a digital economy that attracts international investment and supports local innovation.