BMI View: We expect the Egyptian IT market to perform well over the medium term to 2019. BMI predictsrelatively strong growth in the IT sector in 2016 due to a generally supportive policy environment and a lowpenetration rate of PCs and IT services. However, the deterioration of the security situation in Egypttowards the end of 2015 is already impacting the country's economy: the central bank may allow theEgyptian pound to fall further into depreciation, which could place additional upward pressure on the priceof electronic imports.
Latest Updates & Industry Developments
- Computer hardware sales will increase from EGP8.8bn in 2016 to EGP11.6bn in 2019, up by acompound annual growth rate (CAGR) of 9.8% in local currency terms. A minor downgrade reflectsfaster depreciation of the Egyptian pound against the US dollar, which will be a drag on market growth in2016, but strong demand for low-cost tablets will ensure growth continues overall.
- Software sales are forecast to grow from EGP3.5bn in 2016 to EGP4.9bn in 2019, up by a CAGR of12.0% in local currency terms. Enterprise software spending growth is expected to accelerate as a widerrange of software-as-a-service options become available in Egypt, with small- and medium-sizedenterprises representing a relatively untapped opportunity.
Table Of Contents
Egypt Information Technology Report Q1 2016 BMI Industry View 7 SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Industry Risk Reward Index 19 Middle East And Africa Risk/Reward Index 19 Table: MEA IT Risk/Reward Index - Q116 22 Market Overview 23 Recent Developments 23 Hardware 23 Software 30 Cloud Computing 36 Services 40 Industry Trends And Developments 46 Table: MENA E-Commerce Market Overview, 2014 47 Regulatory Development 52 Table: Government Authorities 52 Regulatory News 54 Competitive Landscape 56 International Companies 56 Table: Samsung Electronics 56 Local Companies 57 Table: Benha Electronics (Katron) 57 Table: Egabi 57 Table: IT-Blocks 58 Table: ITWorx 59 Table: VertiKa Programming 60 Regional Overview 61 Middle East And Africa 61 Demographic Forecast 64 Demographic Outlook 64 Table: Population Headline Indicators (Egypt 1990-2025) 65 Table: Key Population Ratios (Egypt 1990-2025) 65 Table: Urban/Rural Population and Life Expectancy (Egypt 1990-2025) 66 Table: Population By Age Group (Egypt 1990-2025) 66 Table: Population By Age Group % (Egypt 1990-2025) 67 Methodology 69 Industry Forecast Methodology 69 Sources 71 Risk/Reward Index Methodology 71 Table: IT Risk/Reward Index Indicators 72 Table: Weighting Of Components 73