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Egypt's youth-driven gaming sector face investment, talent gaps as AI reshapes industry landscape

China

China

China

Egypt's youth-driven gaming sector face investment, talent gaps as AI reshapes industry landscape

2026-11-10 17:54 Last Updated At:22:17

Egypt's gaming industry is booming, with young people driving a digital revolution across the country, but at the same time industry leaders warn that a lack of investment and a widening talent drain could undercut the sector's potential, even as artificial intelligence reshapes how games are made and played.

There has been a surge in electronic gaming across North Africa as more young people join the field each year. The market reached over 912 million U.S. dollars in 2025 and is projected to nearly double to 1.8 billion dollars by 2034, according to IMARC estimates cited by Egypt's Cabinet Information and Decision Support Center.

Maged Farrag is creative and managing partner at 5dVR, an Egyptian technology and business services company specializing in augmented reality (AR) and virtual reality (VR) and immersive tech, and he also co-founded UBR, a VR multiplayer location-based entertainment game. He is among local innovators who recognized the opportunity early and began tapping into a market where youth make up two-thirds of the North African region's largest population.

"We started developing multimedia applications using touch screens. That was pre-internet. We founded our first game studio in 2011. In 2023 I founded another company. It's a multiplayer free roaming gaming experience. What they call location-based entertainment. We have been working on that for three years now. We have an extensive library of shooter games. And we're also proud to have our first escape room set in ancient Egypt. That's actually featured and being present at the Grand Egyptian Museum," he said.

According to the Egyptian E-Sports Federation, about 40 million Egyptians are active players, averaging 2 million hours a day, with total spending exceeding 800 million U.S. dollars, making the country the leader in the North African region. There is tech talent in Egypt and locally produced games are hitting the market. However, there aren't many gaming companies, mostly efforts by self-taught individuals, according to Farrag.

"There's a growing community, but of course, lacking the investment, lacking the exposure, lacking the attention. This game industry is fighting against all odds without finance as we're talking, no VCs, no funding from the government. Even the taxes. For example, like running an entertainment venue in the UK and Europe, they don't get to pay taxes as VAT and so on. They give an incentive because you are entertaining people. Here, we have to pay almost 36 percent [in tax] if you run a location with a game or entertainment," he said.

There is also the worry of a brain drain to neighboring rich Gulf Arab countries, especially Saudi Arabia, which has recently been recruiting top gaming tech talent from around the globe.

There is a glimmer of hope, however, as a number of universities in Egypt have included electronic gaming in their educational curricula to expand its exposure. And with AI taking over the tech world, industry experts believe that it's an opportunity for Egyptian e-sports companies seeking more growth.

Meanwhile, the country's digital strategy for cross-border services and its national AI strategy in the coming years provide frameworks for skills development and startup support that could benefit game developers, according to government reports.

"The gaming industry is shifting a lot and with the usage of AI right now, it's very important that we start doing our own games that are more focused about the cultural heritage of Egypt, the fun parts of it and also the awareness part. With the technology that we have right now we can definitely [export] it and make it a global thing that everyone can join and play with those games," said Rania Zakaria, commercial director at 5dVR.

Egypt's youth-driven gaming sector face investment, talent gaps as AI reshapes industry landscape

Egypt's youth-driven gaming sector face investment, talent gaps as AI reshapes industry landscape

China on Saturday released the top 10 benchmark scenarios for the multi-hazard, alert, zero-gap and universal (MAZU) platform, an AI-driven meteorological early warning solution, at a sideline event of the ninth China International Import Expo (CIIE) in Shanghai.

The scenarios were selected from 20 teams shortlisted worldwide. The selection focused on the most critical areas of global meteorological disaster prevention and mitigation and explored pathways to turn digital-intelligence meteorological advances into disaster-prevention capabilities, based on the feasibility of scenario applications, the advancement of AI technology, data security and regulatory compliance, and the replicability of innovation.

The scenarios will leverage the CIIE to engage financial institutions in Shanghai and Chinese companies going global, expand their applications, and support global green and low-carbon development and climate governance.

"We're working with the Shanghai Meteorological Service on the MAZU system. We think that in Jordan, this system will help us make the warnings in exactly time for the public, to save the public from this flash flooding," said Ra'ed Ahmad Subhi Rafid, director of the Jordan Meteorological Department.

"In Malaysia, we still don't have many landslide early warning platforms, so that's why we collaborate with the China counterparts. We collect the data from MAZU, which is the data from a satellite Fengyun and the data from CMA (China Meteorological Administration) and also the data from Beidou for our GNSS (Global Navigation Satellite System) equipment. This is a good collaboration between Malaysia and MAZU," said Kamarul Hawari Bin Ghazali, a professor at Universiti Malaysia Pahang Al-Sultan Abdullah.

"In the first phase, we plan to install equipment for the port and then for the mine extraction areas, by the end of this year for the ports. We need the MAZU project cover all the country by providing service for all the social economic development sectors, like energy, agriculture, transportation, risk management, disaster management, tourism and so on," said Rene Tato Loua, director general of the National Agency of Meteorology of Guinea.

The MAZU system integrates observation data from China's Fengyun meteorological satellites and domestically developed AI weather forecast models to provide high-resolution, rapidly updated weather monitoring and natural disaster pre-warning services, and to support disaster relief efforts, the CMA said.

Named after Mazu, the traditional Chinese goddess of the sea and protector of sailors, the system has already been deployed in seven countries while supporting cloud-based trials in more than 50 nations. In the years to come, the China-made MAZU system is expected to be applied in 30 countries.

China unveils top 10 MAZU AI early warning scenarios at CIIE

China unveils top 10 MAZU AI early warning scenarios at CIIE

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