Can Egypt Benefit from the Trade Tensions Between Washington and Beijing to Boost Its Outsourcing Industry?
As trade tensions between the United States and China continue to escalate, along with resulting changes in global supply chains, Egypt is emerging as an attractive investment destination that can capitalize on these shifts to enhance its position in the global market.
The restrictions and tariffs imposed by the United States on Chinese goods are prompting many global companies to seek alternative markets.
This creates a golden opportunity for Egypt to bolster its outsourcing sector and attract foreign investments, particularly from Chinese and European companies looking to avoid the fallout from these trade disputes.
By developing its technological infrastructure and offering competitive investment incentives, Egypt can solidify its position as a regional hub for digital services and export technological solutions to global markets.
Mahfouz: Egypt Faces a Strategic Opportunity to Attract Chinese and European Investments
Engineer Amr Mahfouz, CEO of Delta Electronic Systems and former head of the Information Technology Industry Development Agency (ITIDA), stated that trade tensions between the United States on one side and China and Europe on the other present a significant investment opportunity for Egypt, especially following President Trump’s second term.
Mahfouz explained that Egypt possesses attractive qualities for Chinese investments, particularly in electronics manufacturing, software development, and re-exporting to the American market, thereby reinforcing its role as a regional technology hub. He also noted that the U.S.
tariffs imposed on Chinese and European imports may prompt these countries to seek alternative production centers, making Egypt an ideal choice—especially in the outsourcing (offshoring) sector.
He stressed the importance of seizing this opportunity and taking swift action to attract these investments by enhancing communication with foreign companies and promoting the advantages of investing in Egypt, including economic incentives and its strategic location that facilitates access to global markets.
Danesh: Shifting Focus to Eastern Europe Is a Proactive Strategy to Avoid Unpredictable U.S. Policies
Dr. Adel Danesh, the “godfather” of the outsourcing industry in Egypt, said that the United States remains the largest market for digital services and outsourcing globally, particularly given the high demand for programming, customer support, and artificial intelligence applications.
Danesh confirmed that American companies are increasingly relying on digital transformation, which opens promising opportunities for specialized Egyptian outsourcing entities.
He also noted that the innovative environment in Silicon Valley and elsewhere may offer partnerships with rapidly growing startups.
He viewed the shift toward Eastern European countries as a proactive choice to avoid the risks of unpredictable U.S. policies—especially if a company can compete on service quality and speed of delivery. However, he believes that combining both markets while focusing on specialization would be the optimal solution.
Danesh hinted that Egyptian companies might face challenges in dealing with “America First” policies, which could lead to stricter issuance of work visas (such as the H1 visa) and the potential imposition of fees on services imported from outside the United States or tighter regulatory restrictions on them.
Former Government Official: American Companies Are Using Egypt as a Gateway to Other Markets
A high-level former government official dismissed the idea that Trump’s trade policies with China would cause Egyptian outsourcing companies to shift their focus away from the American market, noting that, according to him, American companies are using Egypt as a gateway to markets beyond Washington.
The official, who requested anonymity, stated that Trump’s tariff wars primarily target China and Canada, and that Egyptian outsourcing companies are unlikely to benefit from these policies.
