ITIDA, Siemens forge strategic partnership to propel Egypt’s digital transformation, talent development

Mohamed Alaa El-Din
6 Min Read

The Information Technology Industry Development Agency (ITIDA), serving as Egypt’s Ministry of Communications and Information Technology’s (MCIT) executive IT arm and a hub for foreign investors in IT and business services, has signed a Memorandum of Understanding (MoU) with Siemens Digital Industries Software. This global leader in digital transformation solutions is partnering with ITIDA to expand its research and development in Egypt, nurture local talent, and promote technological innovation.

The MoU signing, attended by Prime Minister Mostafa Madbouly and Minister Amr Talaat, signifies the government’s robust support for the IT sector and a mutual pledge to foster technological progress and economic growth in Egypt.

Under the MoU, Siemens Digital Industries Software will receive ITIDA’s backing to broaden its Egyptian operations, especially in engineering, research and development (ER&D), and electronics design. The agreement also promotes joint efforts to enhance local talent through top-tier training in cutting-edge electronic design technologies and to generate job opportunities in line with Siemens’ growth objectives in Egypt.

Minister Talaat remarked on the partnership’s significance: “This collaboration marks a key milestone in Egypt’s digital evolution, affirming our commitment to elevate Egypt’s standing in the electronics industry via the ‘Egypt Makes Electronics Initiative.’ It acts as a springboard for cooperation, knowledge exchange, and tech advancement, driving Egypt’s ICT sector to global prominence.”

The ITIDA-Siemens alliance aims to bolster Egypt’s IT and electronics industries and generate employment for its youth. Egypt boasts the largest, youngest talent pool in the Middle East and the second-largest in EMEA, with approximately 600,000 university graduates entering the job market annually.

Capitalizing on this talent reservoir, Siemens Digital Industries Software intends to significantly increase its Egyptian footprint by hiring at least 20% new local employees each year, targeting a workforce of 1800 within three years. This expansion will be supported by national training programs to boost export capabilities.

Moreover, the partnership is dedicated to empowering local electronics startups and nurturing an innovation ecosystem, offering initiatives like access to electronic design automation (EDA) tools, training, mentorship, and technical assistance.

Mike Ellow, Executive Vice President of Siemens EDA, commented: “Today’s agreement underscores several key achievements. It recognizes Siemens EDA’s 28-year legacy as a frontrunner in advanced semiconductor and electronics design technology in Egypt, made possible by the country’s exceptional engineering talent. It also marks a deepened collaboration with MCIT/ITIDA to expand Egypt’s tech ecosystem.”

Ellow added: “This agreement reinforces our ongoing collaboration with the government, academia, and local entities to support our advanced development center’s growth in Egypt for the next three years. We are committed to aiding local SMEs in semiconductor and electronics design and to establishing Egypt as a regional tech hub.”

ITIDA to Bolster Siemens Digital Industries Software’s growth 

The ITIDA is set to provide comprehensive logistical support to Siemens Digital Industries Software, including connecting with local talent and engineers. ITIDA will also recommend Siemens for government incentives aimed at the electronics design sector, reinforcing Egypt’s ambition to become a premier destination for electronics design and digital industries.

Ahmed El-Zaher, CEO of ITIDA, emphasized the strategic importance of the partnership: “This collaboration transcends mere operational expansion; it’s a critical move to accelerate our local IT and high-end service exports. Aligning with Siemens Digital Industries Software, a global tech giant, we aim to boost Egypt’s global tech competitiveness and create ample job opportunities for our rich talent pool and skilled workforce.”

As the catalyst for Egypt’s IT sector, ITIDA is dedicated to fostering a business-friendly environment. Supporting Siemens Digital Industries Software’s growth plans, ITIDA seeks to draw foreign direct investment, enhance ICT service exports, and solidify Egypt’s role as a regional hub for electronics design and digital solutions, in harmony with the Digital Egypt Strategy for the Offshoring Industry (2022-2026).

Renowned for its trailblazing solutions that empower digitalization, Siemens Digital Industries Software is set to expand its Egyptian operations, thereby strengthening its local presence and contributing to a dynamic electronics design and digital industry ecosystem.

In this partnership, Siemens Digital Industries Software will actively collaborate with local entities, including esteemed academic institutions (National Telecommunication Institute, Information Technology Institute, and the American University in Cairo), research centers, and industry associations. The goal is to facilitate knowledge sharing, research cooperation, and best practice exchanges to spur innovation and elevate Egypt’s standing in the global marketplace.

Mike Ellow, Executive Vice President of Siemens EDA, affirmed the agreement’s significance: “Today’s signing marks our commitment to enhancing our Egyptian presence and collaborating with MCIT/ITIDA on mutually beneficial initiatives.”

The MoU was signed by Ahmed Elzaher and Hazem El Tahawy, Vice President for Siemens Digital Industries Software MENA, aligning with the national “Egypt Makes Electronics” initiative. This initiative aims to transform the electronics industry into an economic growth engine for Egypt. By nurturing highly skilled professionals and fostering innovation, Siemens Digital Industries Software and ITIDA are actively contributing to Egypt’s strategic goals for economic diversification and sustainable development.

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