Egypt and Latvia have maintained diplomatic and economic relations for 33 years, with the Latvian Embassy opening in Cairo in 2007 to strengthen cooperation in various fields, particularly in technology and outsourcing.
The trade exchange between the two countries reached $48.5 million in 2023, with Egyptian exports to Latvia showing significant growth, increasing from $3.9 million in 2019 to $10.6 million in 2023.
Egypt: A Global Hub for Outsourcing Services
Egypt is striving to enhance its position as a global hub for outsourcing and business process outsourcing (BPO) as part of its Digital Egypt Strategy for the Outsourcing Industry (2022-2026).
The Egyptian government aims to attract more foreign direct investment (FDI) in the sector. Since November 2022, Egypt has signed 74 agreements with leading global and local companies, resulting in the establishment of 85 outsourcing centers and creating more than 60,000 jobs.
Latvia: A Strategic Partner in Digital Transformation
Latvia is one of the leading European nations in digital government services, with usage rates surpassing the EU average.
Additionally, Latvia has become a key destination for outsourcing business operations, particularly in IT services.
The Latvian outsourcing market is projected to generate $86.4 million by 2025, with an annual growth rate of 5.41% between 2025 and 2029.
Furthermore, the average spending per employee in this sector is expected to reach $88.5 annually in 2025, highlighting the industry’s importance in Latvia’s economy.
Strengthening Future Cooperation Between Egypt and Latvia
Experts believe that Egypt-Latvia collaboration in outsourcing will facilitate technology exchange and allow Egypt to benefit from Latvia’s digital transformation experience.
This aligns with Egypt’s vision of strengthening its digital economy and attracting more investments in the field.
Additionally, this partnership will support startups and entrepreneurs in Egypt by transferring knowledge and developing digital skills, keeping pace with global technological advancements.
Amid rapid advancements in technology and the digital economy, Egypt and Latvia represent a successful model for international cooperation in outsourcing and digital transformation, enhancing both nations’ global competitiveness in this vital industry.
