Page 75 - SAMENA Trends - January-February 2025

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Egypt Unveils Ambitious AI Strategy to Become Regional Leader by 2030

ecosystem, and talent. These elements are designed to support
Egypt’s “Digital Egypt” initiative, aiming to drive socio-economic
growth and facilitate the establishment of over 250 AI-based
companies. The updated strategy aligns with Egypt’s goal to
increase AI’s contribution to the national GDP to over $42.7 billion by
2030, representing 7.7 percent of the total GDP. This announcement
comes as AI is expected to contribute $15.7 trillion to the global
economy by 2030, with the Middle East capturing 2 percent of this,
or approximately $320 billion, according to a PwC report. Among
the countries in the region, Saudi Arabia is set to benefit the most,
with AI projected to contribute more than $135.2 billion, or 12.4
percent of its GDP. The UAE is expected to experience the largest
relative impact, with AI accounting for nearly 14 percent of its GDP.
Egyptian President Abdel Fattah El-Sisi, in his opening statement,
emphasized the importance of AI in global development, stating
that it is at the core of transforming various sectors and unlocking
opportunities for sustainable growth. He highlighted that the pace
of advancements in AI technology necessitates fully realizing its
potential to shape a brighter future for Egypt. The President also
noted that the new strategy builds on the foundation laid by the first
AI strategy launched in May 2021, which focused on integrating
AI tools into education, enhancing professional development, and
fostering international collaborations. According to the strategy,
AI applications are expected to benefit 26 percent of Egypt’s
workforce, considered a marginalized population. Additionally, the
number of AI professionals in Egypt is forecasted to reach 30,000
by 2030. The strategy further anticipates that AI technology,
including generative AI, will significantly boost academic research,
increasing the number of AI-related publications to 6,000 per
year and positioning Egypt as a key regional research center. “We
Egypt has launched the second edition of its National Artificial remain determined to achieve excellence in this transformative
Intelligence Strategy for 2025–2030, showcasing its ambition to field,” President El-Sisi declared. “Our aim is to establish Egypt
become a leading AI hub in the Middle East and Africa. Building on as a leader in AI in the Middle East and Africa and an influential
the original framework introduced in 2021, the updated strategy, contributor on the global stage. We will continue to prioritize
revealed by the National Council for Artificial Intelligence, centers investments in skill development and capacity building to cultivate
on six key pillars: governance, technology, data, infrastructure, AI professionals who meet international standards.”

Pakistan Readies 5G Auction

Pakistan’s Ministry of IT and Telecom set a timeline for rolling is adopted for the upcoming auction so the total cost of spectrum
out 5G service, with a spectrum auction of four bands scheduled is sustainable and operators have the right incentives to invest in
for May and deployment to start the next month, Pakistan Today network rollout which delivers affordable connectivity”. The GSMA
reported. The Ministry’s Advisory Committee for 5G Planning is also urged the government to eliminate a 15 per cent withholding
due to complete its work on policy reforms, covering spectrum tax on telecoms services and a 19.5 per cent sales tax on mobile
pricing, auction format and tax framework in March, the newspaper services. In 2023, Pakistan’s Minister of IT and Telecom and the
wrote. Pakistan established the committee in 2020. The Pakistan PTA chair committed to eliminating hurdles to a 5G auction, with
Telecommunication Authority (PTA) is expected to allocate a priority on addressing issues around taxation. At the time, the
spectrum in the 3500MHz, 2600MHz, 2300MHz and 700MHz officials aimed to hold an auction within ten months. The PTA
bands. In a report on the Pakistan market in August 2024, the issued six-month 5G test licenses in the 2.6GHz band to operators
GSMA noted spectrum costs were already high and ARPU had Jazz and Zong in 2020.
been declining, making it “imperative a rational approach to pricing

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