Key Takeaways

• Egypt’s economy is showing signs of growth, with a predicted GDP rise to 4.7% by 2026.
• The AV market faces challenges, including currency devaluation and competition from foreign firms.
• Government initiatives like ‘Egypt Vision 2030’ aim to boost investment and modernize infrastructure, impacting the AV sector positively in the long-term.

The last five years have seen substantial investment and development in Egypt, marked by the launch of major infrastructure projects, including a new administrative capital aimed at alleviating Cairo’s overcrowding. The economy is projected to grow at 4.7% by 2026, an improvement over earlier IMF forecasts.

Despite the optimistic economic outlook, the audiovisual (AV) sector has not fully benefited. Hisham Allam, CEO of Egyptian Micro Solutions, indicated that ongoing economic challenges and new IMF regulations have tempered growth. While the AV market in Egypt has expanded over the past several years, it remains less developed compared to Gulf markets. Mohammed Attia of Quality Egypt highlighted significant potential, especially in sectors such as education and transportation.

Advancements in digital technologies and increasing foreign investment are expected to drive demand for AV systems in the coming years. Tarek Harby, from Tatas AV Solutions, noted that expanding infrastructure projects would create new opportunities across business, education, and entertainment.

The past two to three years have been fruitful for the AV sector, largely due to the New Administrative Capital and various other construction projects. The new capital, which aims to house six million residents, features government offices and facilities, all designed with modern technologies and renewable energy sources.

However, looking ahead, industry leaders express concerns. The geopolitical climate and new tariffs could significantly affect investment and project outcomes. Attia pointed to a shift in focus from pure infrastructure development to hospitality and cultural projects, with about 20 new hotels and five airport expansions underway.

The Egyptian government is also pushing digital transformation through initiatives like ‘Egypt Vision 2030,’ which seeks to create smart cities powered by renewable energy. This is expected to enhance public services and attract both domestic and foreign investment, potentially invigorating the AV sector as various markets begin to stabilize.

Despite these advancements, challenges remain. The depreciation of the Egyptian pound poses a significant barrier for AV integrators when importing equipment. Additionally, local firms struggle with competition from inexperienced companies that underbid established players, leading to poor project execution.

The AV industry’s maturity is hampered by limited investment in service contracts, as many clients attempt to manage systems independently after installation—a trend that often leads to difficulties later on. Furthermore, the exodus of skilled engineers to more lucrative markets in the Gulf exacerbates local shortages in talent.

While obstacles such as currency instability and competition exist, ongoing projects and a central geographical location may offer opportunities for Egyptian AV companies. With continued government efforts to modernize and digitalize, the landscape could shift positively for the AV market in the years to come. The realization of ambitious plans remains uncertain, but the commitment to progress is evident within Egypt’s developmental framework.

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