BMI View: We expect the Egyptian IT market to extend the strong growth from 2015 into 2016, and overthe medium term, but with growth decelerating somewhat as the boost from pent-up demand during theperiod of political and economic instability dissipates. Our core scenario is for a CAGR of 11.5% over2016-2020 to EGP26.6bn, though the US dollar rate is expected to be slower due to depreciation.Nonetheless the outlook is positive, a view underpinned by our assessment of household income trends anddemographics in the context of low device penetration rates - alongside the modernisation momentum in theenterprise market where cloud computing is expected to be an area of outperformance. Although the corescenario is positive we do continue to highlight downside potential in domestic and regional political andsecurity risks.
Latest Updates & Industry Developments
- Computer hardware sales will increase from EGP9.0bn in 2016 to EGP12.6bn in 2020, a compoundannual growth rate (CAGR) of 8.9%. Underdeveloped market, with tablet penetration particularly low asthe global boom coincided with the instability in Egypt, and this growth potential is combined with ourpositive analysis of income trends to support a bullish hardware outlook.
Table Of Contents
Egypt Information Technology Report Q2 2016 BMI Industry View 7 SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Table: IT Industry - Historical Data And Forecasts (Egypt 2013-2020) 17 Industry Risk Reward Index 18 Middle East And Africa Risk/Reward Index 18 Table: IT RRI Scores By Region 19 Table: MEA IT Risk/Reward Index - Q216 21 Market Overview 22 Recent Developments 22 Hardware 22 Software 28 Cloud Computing 33 Services 37 Industry Trends And Developments 43 Table: MENA E-Commerce Market Overview, 2014 44 Regulatory Development 48 Table: Government Authorities 48 Regulatory News 50 Competitive Landscape 52 International Companies 52 Table: Samsung Electronics 52 Local Companies 53 Table: Benha Electronics (Katron) 53 Table: Egabi 53 Table: IT-Blocks 54 Table: ITWorx 54 Table: VertiKa Programming 55 Regional Overview 56 Demographic Forecast 60 Demographic Outlook 60 Table: Population Headline Indicators (Egypt 1990-2025) 61 Table: Key Population Ratios (Egypt 1990-2025) 61 Table: Urban/Rural Population and Life Expectancy (Egypt 1990-2025) 62 Table: Population By Age Group (Egypt 1990-2025) 62 Table: Population By Age Group % (Egypt 1990-2025) 63 Methodology 65 Industry Forecast Methodology 65 Sources 67 Risk/Reward Index Methodology 67 Table: IT Risk/Reward Index Indicators 68 Table: Weighting Of Components 69