Page 58 - SAMENA Trends - July-August 2023

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Egypt Aims for US$9 Billion in Digital Services Exports By 2026

Egypt is aiming to reach $9 billion in digital services exports by in implementing strategic programs. These included in-kind
2026 after closing at $4.9 billion last year, as it continues to push incentives, external marketing initiatives aimed at enhancing
ahead with its national strategy aimed at doubling the revenue Egypt’s global perspective, and internal marketing strategies
of tech-enabled offshoring services. In a review meeting held on designed to enhance the reputation of the call center sector in
Tuesday, Prime Minister Mostafa Madbouly held discussions with Egypt among graduates. Launched in February 2022, the strategy
the Minister of Communications and Information Technology Amr was aimed at increasing the export revenue of tech-enabled
Talaat on the developments of the plan, which aims to increase offshoring services, with a 19 percent compound annual growth
the volume of Egyptian exports of information technology rate, a ministry press release stated at that time. It is intended to
products and services. The strategy also looks to enhance Egypt's provide a full suite of incentives to attract investments and boost
competitiveness in the fields of research and development and the country’s competitiveness in R&D and value-added services,
value-added services, while contributing to accelerating the growth the release added. At the launch of the strategy last year, Talaat
of the knowledge economy. During the meeting, Talaat shared the revealed the ministry multiplied its training budget 22 times,
initiatives taken to raise the skill levels of graduates and workers helping achieve a 50-fold increase in the number of trainees. At
in the outsourcing industry. He added that the number of workers 16 percent growth rate, ICT is the highest-growing state sector in
specialized in exporting these services will reach about 550,000 in Egypt, the minister had noted, adding that the sector contributes to
2026. These initiatives are designed to increase the supply of skills the gross domestic product by 5 percent, but he stressed that they
and cadres specialized in various outsourcing fields, in addition to intend to achieve 8 percent within three years. The strategy stands
language programs and personal, administrative, and leadership on three main pillars: talent development, ecosystem development,
skills. He added that the ministry has also assisted businesses and marketing and sales, the release added.

Ooredoo, Zain, TASC Towers to Create Independent Multinational Tower
Company

Qatar-based Ooredoo Group, Kuwait-based Zain Group and UAE-
based TASC Towers Holding have entered exclusive negotiations
to combine their approximately 30,000 telecoms tower assets in
Qatar, Kuwait, Algeria, Tunisia, Iraq and Jordan into a jointly owned
independent tower company in a cash and share deal, with a
view to signing definitive agreements in Q3 2023. The proposed
partnership would form the largest tower company in the Middle
East and North Africa (MENA) region, the parties stated. The
enlarged company would continue to operate as an independent
and standalone entity providing passive infrastructure as a service
throughout the region with a focus on operational efficiencies,
synergies and reduction of carbon footprint. Ooredoo and Zain
would retain their respective active infrastructure, including
antennas, intelligent software, and intellectual property with
respect to managing their telecom networks. Ooredoo noted that
its tower network in Oman ‘is following a standalone process’.

Qatar Investment Authority Expected to Acquire Stake in Vodafone Egypt by

September

Following reports last month which claimed that Qatar Investment ever, delayed as the stake to be sold remained a topic of debate;
Authority (QIA) was aiming to acquire Telecom Egypt’s (TE’s) entire it is understood that QIA continues to seek TE’s entire 45% stake
stake in Vodafone Egypt, it has now been suggested a deal could in Vodafone Egypt, while the Egyptian government – TE’s majori-
be finalized by September this year. According to Daily News Egypt, ty shareholder – remains keen to divest only a 25% shareholding.
which cites unnamed sources familiar with the matter, a deal had Nonetheless, the sources quoted by the local press outlet said that
actually been expected to be finalized last month after the parties negotiations are continuing, and it is expected that implementation
involved agreed on the valuation of Vodafone Egypt. It was, how- of a deal will take place before end-September 2023.
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