How Can Egypt Benefit from Access to Europe’s AI Factories?

The global artificial intelligence sector is witnessing rapid growth, reaching a value of around $391.7 billion in 2024, with projections suggesting it could soar to over $10 trillion by 2034. As Egypt strives to keep pace with this technological wave through several positive steps, gaining access to Europe’s AI factories represents a significant milestone that supports the country’s vision in this space.

In October, at the conclusion of the Egypt–EU Summit, European Commission President Ursula von der Leyen announced that the European Commission would grant Egypt access to AI factories in Europe.

A Significant Step Forward

Gaining access to AI factories in Europe is a highly important and beneficial step. It allows Egypt to reach advanced technologies and diversify its technological sources. Relying primarily on the United States and China for tech can create national security risks in the event of political tensions. Having additional sources for advanced technologies gives Egypt the opportunity to develop new AI-powered products capable of competing globally.

Advanced Considerably

AI technologies in Europe have advanced considerably compared to those in the Middle East or China. However, they still lag behind the United States, primarily due to the massive funding capabilities available to American companies. That said, not all cutting-edge technologies are necessarily the most useful. A new concept is gaining traction: instead of relying on massive models trained on huge datasets, smaller optimized models trained on limited, domain-specific data can be more efficient, cost-effective, and sometimes produce better results for certain applications.

Overall, Europe is making strong efforts to reach a competitive technological level something Egypt can take advantage of.

Access to Advanced Technologies

With favorable commercial terms and discounts, access to these advanced technologies gives Egypt a strong opportunity to develop products tailored for a global market that evolves rapidly. Engaging with international companies can also boost Egypt’s competitiveness.

Technology Export Opportunities

To build competitive global products, Egypt needs to enhance data centers and internet infrastructure. Exporting technology could help the country secure foreign currency, pay off debts, and reduce the trade deficit.

Developing the human capital capable of using these advanced European technologies is equally essential. Strengthening talent pipelines—especially through private-sector collaboration—will be crucial for building innovative products and services.

Focus on Applications, Not Only Models

For Egypt and the Middle East, greater focus should be placed on AI applications rather than models. Prioritizing commercial applications—particularly those built using the wide range of open-source models—can support technological independence. Applications offer more immediate value compared to investing heavily in building large-scale models, which require huge infrastructure, research investment, and ongoing development.

This is exactly the strategy we follow at Tactful, where we integrate language models into applications that deliver real value to markets and businesses. It’s a creative and highly competitive space.

Building AI Technologies in Egypt

Supporting startups and SMEs in building AI-driven solutions is key to advancing Egypt’s AI capabilities. These companies take on significant risk through research and development. They need support and facilitation to reduce risk levels, accelerate innovation, and achieve sustainable growth with greater flexibility whether through private investment or favorable public-sector policies.

Mohamed El-Masry

Founder & CEO, Tactful AI