BMI forecasts that the Egyptian IT market will grow by --.- in local currency terms in ---- to EGP--.-bn, but as a result of depreciation in US dollar terms this translates to a contraction of -.- to USD-.--bn. Our Country Risk team for Egypt forecasts depreciation to average EGP-.-/USD in ----, from EGP-.-/USD in ----. This depreciation will not prove a major disruption under our core scenario, and overall economic conditions will be broadly supportive with real GDP and private final consumption growth forecast at -.- and -.- respectively. In ---- there were reports that importers requested new facilities so that they can avoid deficits with suppliers in the event of an interruption or delay in access to dollars, but this did not act as a drag on any segment of the IT market in ---- and financial conditions are still accommodative in ----. Under our core scenario a combination of relatively low penetration of IT products and solutions in households and enterprises and supportive IT sector policies from the government will underpin spending ...In ---- there were reports that importers requested new facilities so that they can avoid deficits with suppliers in the event of an interruption or delay in access to dollars, but this did not act as a drag on any segment of the IT market in ---- and financial conditions are still accommodative in ----. Under our core scenario a combination of relatively low penetration of IT products and solutions in households and enterprises and supportive IT sector policies from the government will underpin spending
...Computer hardware sales are predicted to increase from EGP-.-bn in ---- to EGP--.-bn in ----, a compound annual growth rate (CAGR) of -.- . There will be a small downgrade to reflect the greater threat of smartphone cannibalisation, but population and income growth, and educational procurement will support the segment and maintain growth. Software sales are forecast to increase from EGP-.-bn in ---- to EGP-.-bn in ----, a CAGR of --.- . Piracy is still holding back software sales and overall the software market in Egypt is of a low value, but Software as a Service (SaaS) provision is expected to help counter piracy and deepen the market to accelerate spending growth. IT services sales are predicted to increase from EGP-.-bn in ---- to EGP-.-bn in ----, a CAGR of --.- . ...IT services sales are predicted to increase from EGP-.-bn in ---- to EGP-.-bn in ----, a CAGR of --.- . Cloud services will be an area of outperformance as vendors target opportunities presented by the low on-premises penetration of legacy solutions.
...� Business Monitor International Ltd Page - Egypt IT SWOT - Continued Government is actively promoting the adoption of ICT by the populace and small- and medium-sized enterprises and providing incentives for multinationals to invest in the market. Young population will see rising adoption of IT hardware and services as they get older and gain higher paid employment, with smartphones acting as an entry point for adoption of more advanced products and services. ...
