Mohamed Abou El-Naga Highlights Opportunities for Egyptian Startups in 2026

Egyptian startups are going through a pivotal phase with significant growth opportunities ahead, according to the discussions at the “Where Are the Opportunities in 2026?” event, held at Al-Maqarr.

The event witnessed strong attendance from entrepreneurs and startup ecosystem stakeholders, as well as businessman Ahmed Khalil from Shark Tank Egypt.

Discussion

The session featured an in-depth discussion between Hussein El-Manawy, Business Development Consultant, and Mohamed Nagaty, entrepreneur and founder of ExitsMENA, focusing on key trends shaping the entrepreneurial ecosystem in the coming year, sectors expected to grow, and others likely to face challenges, based on both local and global indicators.

A Key Platform for the Startup Ecosystem

Hussein El-Manawy expressed his pleasure at the conference being held for the sixth consecutive year, noting the steady increase in both viewership and attendance. This growth, he said, confirms the event’s position as a key platform for entrepreneurs to connect, exchange ideas, and discuss major global and local trends affecting the startup landscape.

He added that while the event hosts Mohamed Nagaty on an annual basis, its content is shaped through consultations with a wide range of ecosystem stakeholders and experts to ensure discussions and insights remain relevant and valuable to all players in the sector.

The Global Potential of Egyptian Startups

The event highlighted the ability of Egyptian startups to compete globally and secure a place in the technology export market. Speakers praised the experience of InfiniLink, a semiconductor chip design company that successfully attracted local and international investors leading to its acquisition, underscoring Egypt’s potential to export advanced technology.

The B2B Sector: Growth and Setbacks

Discussions addressed the B2B sector, which saw strong growth over the past three years and was widely believed to have unlimited potential. However, the past year witnessed notable setbacks.

Mohamed Nagaty explained that the main reason was the heavy reliance of many startups on cash burning to attract investments, without building sustainable business models.

He cited examples of platforms connecting supermarkets with FMCG companies, noting that the currency devaluation significantly increased operational pressures and directly impacted these companies’ ability, especially those led by young founders, to maintain the same pace of growth.

Alternative Investment Platforms and Fractional Ownership

Regarding alternative investment platforms that allow individuals access to opportunities previously unavailable to small investors, Nagaty stressed that technology does not create new needs but rather enhances the efficiency of existing behaviors. He cited platforms like MoneyFellows, which digitized and revitalized the traditional savings circle concept.

On online gold and silver investments, he issued a clear warning against purchasing precious metals digitally without immediate physical exchange, noting that some platforms may mislead investors or face Sharia and technical issues due to the lack of instant delivery.

Real Estate Securitization and Secondary Markets

The discussion also covered real estate securitization, a model that has proven successful globally. Nagaty referenced a Brazilian company that attracted major investments from BlackRock, noting that the main challenge in the region lies in legislative and regulatory frameworks, particularly in real estate.

He also pointed to ongoing efforts to establish a secondary market for startups, enabling share trading through Special Purpose Vehicles (SPVs) while avoiding traditional complexities.

F&B Sector and the Expansion Trap

Nagaty warned against the rapid expansion trap in the food and beverage sector, describing it as “commercial suicide.” He referenced the local experience of B.Laban and shared a personal experience managing 48 restaurants that generated high revenues but no real profits.

He emphasized that expanding outlets without achieving operational profitability leads to fast failure, stressing that true growth begins with profitability.

The AI Revolution and Its Impact on Services

Nagaty stated that artificial intelligence will bring radical change to the services sector, particularly call centers, where intelligent systems can replace thousands of traditional jobs while significantly reducing operational and real estate costs.

He explained that countries fall into four categories in AI: leaders such as the US and China; contributors like Taiwan; countries that contribute positively and can afford technology; and finally, observers, placing Egypt currently in the latter category.

Regional Market Opportunities

The speakers discussed regional expansion opportunities, highlighting Oman as one of the most promising Gulf markets for Egyptian startups, provided solutions are well-tailored to local needs. Bahrain, they noted, has made significant progress in fintech.

As for Saudi Arabia, they cautioned that the market is often misunderstood and is generally more suitable for Saudi entrepreneurs. Egyptian startups’ success there depends largely on their ability to offer relevant, localized services.

When Should a Founder Step Aside?

One of the key messages delivered by Mohamed Nagaty was the importance of transitioning from founder-centric management to a fully institutionalized company. He stressed the need to recognize the right moment to hand leadership to a CEO better equipped to manage growth and operations.

Hussein El-Manawy added that real opportunities are not limited to specific sectors, but lie in delivering real value to a large customer base, building strong teams, and executing efficiently with controlled costs, regardless of industry.

Understanding the AI Industry

The speakers discussed the rapidly growing AI industry, with Nagaty explaining that AI is not a single industry but a full ecosystem. It starts with energy, which underpins data centers; moves to infrastructure and raw materials for chip design; then to processors, dominated globally by Nvidia; followed by large language models such as OpenAI and Anthropic, which consume the largest share of investments; and finally applications and AI agents, which build practical solutions like customer service tools, data analytics, and operations management.

Customer Experience as a Major Opportunity

Hussein El-Manawy emphasized the strong opportunity in customer experience (CX) enhancement using AI technologies, enabling companies to significantly improve service quality and customer satisfaction.

He noted his involvement with Origin CX, a consultancy specializing in digital customer experience, working with major local and international entities across the Middle East and Africa to develop CX strategies and deploy cutting-edge global technologies.

Industry Economics and the Bubble Warning

The discussion addressed the economic realities of the AI sector, including high operational costs. Nagaty likened the current market to a “rotating investment circle,” where major companies invest in each other, such as Microsoft investing in OpenAI, which in turn buys Nvidia processors, leading to inflated valuations without real operational returns in some cases.

He warned of a potential AI bubble, drawing parallels to the 2001 dot-com crash, and cautioned against inflated valuations for companies lacking sustainable business models. He also highlighted the phenomenon of AI Washing, where companies add “AI” to their branding solely to attract investors.

The Shift Toward Intelligent Agents

The speakers noted a qualitative shift from basic chatbots to advanced intelligent agents that are reshaping job roles. AI, they emphasized, will not eliminate jobs but redefine them, requiring professionals such as doctors, lawyers, and accountants to integrate AI applications into their expertise to remain competitive.

Promising Arab AI Models

They highlighted several promising Arab AI companies, including Taxon, an Egyptian startup founded by Egyptian engineers focusing on Arabic-language intelligent agents and recently achieving strong sales results.

They also cited WideBot, specializing in AI training and conversational solutions with regional and international partnerships, and Media, a company producing Arabic and English content using AI-powered virtual presenters.

Content Challenges and Global Lessons

In closing, El-Manawy and Nagaty discussed the crisis in Arabic content related to startups and entrepreneurship, criticizing the weakness of specialized business content and the dominance of trend-driven algorithms that favor superficial material over educational value.

El-Manawy concluded by affirming that “Where Are the Opportunities?” aims to help bridge this gap by launching several digital products designed to reshape the landscape and offer a more meaningful Arabic content experience on startups and entrepreneurship.

Source: Press Release