Cairo’s Rise in the MENA Startup Scene
The Egyptian startup market has taken considerable strides in its growth and development, to the extent that Cairo has secured a 3rd place position in the MENA startup landscape according to the Global Startup Ecosystem Report of 2024. The notable ranking shows that Egypt has undergone rapid and conscious development to make the environment more user-friendly for venture capitalists to support the industry; this success is the joint efforts of the government in the form of new policies and regulations, investment/ funding schemes and mentorship opportunities in combination with creative individual entrepreneurs.
Egypt has successfully become the largest startup hub in the Arab region with over 280 startups founded and funded since 2010. This is a result of initiatives from the Ministry of Information Technology and Communication playing an integral role in providing essential resources for startup entrepreneurs. An example of initiatives created is the Technology Innovation and Entrepreneurship Centre (TIEC) and CREATIVA Innovation Hubs. According to a Bloomberg report (in partnership with the Ministry of International Cooperation), “Egypt’s startup sector grew 176% in 2021 to register record-high venture capital funding of $491 million, accounting for 15% of transactions and 11% of deployed capital with e-commerce and fintech the most active fields”.
Youth, Innovation, and Investment
It is important to note that these figures are only the beginning of this tech transformation. It has been observed that young Egyptians are very interested in STEM subjects, there has also been a recent spark in growth sectors namely healthtech, biotech, and medtech. The major technological innovations paired with a youthful population strongly fuel the entrepreneurial Egyptian spirit, especially with over 300 000 graduates emerging from Egyptian universities each year aiding to make Egypt the regional powerhouse of digital economy.
Connecting Through Events and Ecosystems
Other factors contributing to the growing market are by hosting major tech startup events like the RiseUp Summit – one of the largest collections of innovators and entrepreneurs. Another event example is the Alexandria’s Techne Summit which connects startups and innovators. These events give critical access to small startups to interact with larger, global ones. Other highly beneficial opportunities for startups is the initiatives from the Central Bank of Egypt called FinTech Egypt which successfully attracted $796.5 million in 2023. A second government program is Egypt Ventures, launched under the Ministry of Investment and International Cooperation designed to encourage young entrepreneurship through investment. Other features included under Egypt Ventures are supporting the early stage of startup businesses via mentoring and training.
Egypt’s Digital Future in a BRICS+ Context
Egypt’s growing digital transformation and ambitions are increasingly being framed within a broader BRICS+ context. A highly beneficial component to Cairo’s tech startup ecosystem, is neighbouring state, the UAE and in 2024 it was ranked number one globally in digital development indicators including telecom infrastructure, BRICS+ digital governance, and digital content, according to its 2025 State of Digital Transformation Report. This showcases a potential model and partner for Egypt as it seeks to scale its own transformation efforts.
All the developments in the tech startup industry are en route to fulfil the expectations set in Egypt Vision 2030 by introducing and implementing a digital transformation that aids in improving financial inclusion rates and achieving economic empowerment. By virtue of the TIEC, offering incubators and accelerator programs for startups it provides access to available technology so businesses can operate at a strong competitive level. Innovation hubs are very important and beneficial for businesses who require office space and support required for the business to thrive.
Increased South-South cooperation with digitally advanced BRICS+ members like the UAE offers Egypt a chance to learn from established best practices. The UAE’s rollout of over 1,400 digital public services and 460 federal-level digital projects demonstrates how digital governance can be integrated across sectors, from education and healthcare to logistics and environmental protection. For Egypt, strategic partnerships and knowledge-sharing with countries like the UAE could supercharge Cairo’s goal to become a regional innovation capital.
The continued success of Cairo tech startups depends on a variety of different stakeholders participating effectively and efficiently. Graduates must be equipped with the right skills to benefit the market and contribute effectively, while the government must continue to provide the ICT tools required for there to be a prosperous digital economy and society at large. In collaboration with BRICS+ partners, Egypt can harness not only capital and talent, but also frameworks for building a digitally sovereign and competitive economy. Egypt’s success will soon be a model for neighbouring countries to follow.
Written by:
*Dr Iqbal Survé
Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN
*Banthati Sekwala
Associate at BRICS+ Consulting Group
Egyptian & South African Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.
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