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THE IMPACT OF ICT INVESTMENTS ON ECONOMIC DEVELOPMENT IN EGYPT Sherif Kamel The American University in Cairo, Egypt [email protected] Dina Rateb The American University in Cairo, Egypt [email protected] Mohamed El-Tawil BP, Egypt [email protected] ABSTRACT Since the mid 1980s, Egypt has realized significant growth in information and communication technology (ICT) usage across different sectors in the economy. However, in today’s global environment, the challenge no longer lies in accommodating the growth of the ICT sector that introduced changes that are arguably the most important since the industrial revolution. The essence is the diffusion of ICT across the society and ensuring that it furthers socioeconomic development. Managing this transformational process requires cooperation and partnerships between different stakeholders in the society to ensure steady and successful progress towards the goal of realizing a fully developed information society. Moreover, in order to generate economic development and growth, ICT need to be transformed into economic activities offering services, applications and content that create new markets, reduce costs and increase productivity. While ICT are generally adaptable; their effectiveness in addressing development issues still depends on their introduction, adoption, diffusion and adaptation within a healthy and encouraging regulatory environment. In that respect, the importance of ICT in socioeconomic development in Egypt was realized since 1999 leading to the allocation of ICT on the government agenda supported by the private sector and the civil society. This article addresses the recent efforts that were exerted in Egypt, as an emerging economy, in terms of building its ICT sector while analyzing the associated investments and their impact on economic development. Keywords: ICT in developing nations, ICT investments and socioeconomic development, ICT transfer to developing nations, social inclusion, ICT diffusion, Egypt 1. INTRODUCTION Since the mid 1980s, ICT has been characterized as an invaluable platform for economic growth attracting increasing attention from different governments around the world mainly from developing nations. ICT has revolutionized the global economy with changes in different economic activities (Kodakanchi et al, 2006). Experience has proved that given the proper infrastructure, ICT can be an enabler for socioeconomic development. Examples from the developed world where significant ICT investments had major impacts include increasing the United States gross domestic product (GDP) by 7.8%, 8.0% in the UK, 8.3% in Singapore and 8.4% in Australia; all such developments were linked with improved productivity, competitiveness and citizen engagement (Bhatnagar, 2005; Kodakanchi et al, 2006). However, with respect to developing nations the literature is limited in resources when it comes to assessing the impacts of ICT investments on economic development although the evaluation of ICT investments represents an important element for policy and The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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decision makers (Dos Santos, 1991; Thatcher and Oliver, 2001). Moreover, it is vital to measure the overall efficiency of ICT as part of leveraging its impact on the economy (Roztocki and Weistroffer, 2004). In addition to the national scheme, at the corporate level, ICT represents an important venue for spending (Weill et al, 2002) as a vehicle for growth. Increasingly, many of the ITrelated expenses are directed to developing nations (Roztocki, Pick and Navarrete, 2004). For example, during the period 2002-2004, 500 global ICT companies including Microsoft, IBM, Siemens, Alcatel, Motorola, Nokia, Intel, Hewlett-Packard and Oracle implemented over 1000 projects in developing nations dominating the largest share of ICT investments (O’Connell, 2004). Experiences documented in the literature indicate that considerable growth in economic advancement is realized through the proliferation of ICT into national economic activities (Ernst et al, 1998). However, in the literature, most of the studies on payoffs of ICT investments, also known as productivity paradox, focus on developed nations (Brynjolfsson, 1993; Kohli and Sherer, 2002). There is very little research on the impact of ICT investments in the context of developing nations (Checchi, Hsieh and Straub, 2003). Therefore, this article addresses an important research need in developing nations through studying ICT investments in Egypt and their implications on economic development. The contribution from a research perspective is to report on some lessons learnt and propose a set of recommendations for future implementations in similar developing nations’ environments. Based on the literature, formal appraisals of ICT investments in terms of costs and benefits have rarely been carried out. For example, although many international organizations such as the World Bank fund nearly 1 billion US dollars of ICT investments as a part of their lending programs and grant assistance to various countries, the evaluation of the ICT components of these programs in terms of overall impact has been weak (World Bank, 2003). The success of a number of projects in improving the investment climate and the delivery of services, creating a market for information dissemination and leveraging competitiveness in developing nations have reinforced the idea of ICT for development (Ernst et al, 1998). However, given the various challenges faced by developing nations the issue of vertical versus horizontal development remains an issue. The challenge in providing access to basic services including health, education, water, and infrastructure including roads, telecommunication and electricity require large investments and it is always a major ongoing debate whether investments in ICT divert resources and attention away from more basic needs (Bhatnagar, 2005). Thus, there is a need for an evaluation of the real potential impact of ICT on development to justify the increasing ICT investments in developing nations and to complement the studies that focused on the effect of ICT on firm performance and productivity in industrialized countries (Strassman, 1985; Baily, 1986; Jorgenson, 2001; Oliner et al, 2000). In terms of developing nations, the growth of the ICT sector and its contribution to GDP and exports has been researched extensively in the context of countries like Costa Rica with 38% of exports from the microchip industry and India’s software exports exceeding 12.5 billion US dollars (Bhatnagar, 2005; Kumar, 2000). However, country level studies concluded that developed nations showed a positive and significant relationship between ICT, growth and productivity, but that there was no evidence of such a relationship for developing nations (Dewan and Kraemer, 1998, 2000; Pohjola, 2001). Low levels of ICT investment relative to GDP in developing nations and lack of completed infrastructure and knowledge base to support effective use of ICT were the cause of the gap between developed and developing nations. For example, in the case of Egypt, the average annual percentage of GDP devoted to expenditure on ICT during the period 1993-2001 was 2.2% compared to 8.8% in Sweden (Pohjola, 2001). Such figure increased significantly since then helping to realize an increasing impact of the ICT sector especially with the formulation of crossThe Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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sectoral projects with sectors such as culture, health and education engaged with the ICT sector (Kamel, 2007). The ICT infrastructure evolved to become a critical factor driving productivity and growth in global economies with varying implications among developed and developing nations (Steinmueller, 2001). It is important for developing nations not to isolate themselves from the changes occurring due to the developments in the ICT globally (Gholami et al, 2004). This is partially because ICT is transforming the global economy and creating new networks that cross cultures as well as minimize distances. However, it is important to note that increased investments in ICT without the involvement of other socioeconomic factors may not improve growth in developing nations (Mbarika et al, 2003). This justifies the crosssectoral projects that were formulated in Egypt since 1999 (www.mcit.gov.eg; ITU, 2001). It is important to note that ICT promotes economic growth as well as social opportunities rendering many traditional, economic approaches less viable. For example, more than 50% of GDP in the economies of developed nations come from information-driven industries such as ICT. The wide diffusion of ICT including, but not limited to, PC penetration, Internet access, as well as fixed and mobile telephony, and their integration in nearly all aspects of everyday life is altering economic activity and the social environment. In that respect, ICT can serve as critical enabler to achieve many of the development goals agreed by world leaders at the United Nations Millennium Summit (www.wsis-online.net). In terms of impacts, ICT has the potential to create job opportunities, improve delivery and access to health and education, facilitate information sharing and knowledge creation, and increase the transparency, accountability and effectiveness of government, business and non-profit organization; all of which contributing to an enabling environment for socioeconomic development (Morawczynski and Ngwenyama, 2007). ICT has turned into the key platform and catalyst of the past few decades having the potential to support the development strategy for developing nations in order to narrow the gaps in productivity and output that separate developed and developing nations (Steinmueller, 2001). It has become evident from existing knowledge that faster rates of economic growth can be achieved using ICT as the driving factor in the economic policies of worldwide economies (Morawczynski and Ngwenyama, 2007). Elements such as the rapid diffusion of digital platforms such as the Internet, mobile telephony and broadband networks are all examples that demonstrate how pervasive ICT has become with various implications on economic growth at macro and national levels. Capital growth through investment in ICT is important for economic growth (Pilat, 2003) but also invaluable for its impacts on the cultural understanding of the community (Morawczynski and Ngwenyama, 2007). The ICT sector is vital for growth because its associated production mechanisms have been characterized by rapid technological progress, solid and strong demand volumes (Oshikoya and Hussain, 2007). The sector can make significant contributions to economic development, employment and exports. Moreover, with the intensive use of ICT within the economy, economic growth is usually positively affected with an emphasis and focus on the service sectors such as finance, business services and distribution. It is important to note that the largest economic benefits of ICT are typically observed in countries with high and increasing level of ICT penetration and diffusion (Pilat, 2003). However, other vital elements need to be provided such as the regulatory environment including government policies supporting ICT, availability of required human resource capacities and skills, enough local and foreign investments, scheme of innovation, social awareness of ICT importance and the effective deployment of ICT across the community (Oshikoya and Hussain, 2007). Therefore, nations with equal ICT diffusion will not exercise similar impacts of ICT on economic performance. In that respect, countries around the world have been investing over the last two

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decade in their ICT infrastructure with its different building blocks to realize significant economic gains. 2. RESEARCH METHODOLOGY ICT investments are often researched and studied to assess their return, performance and implications on the economy especially in the context of developing nations. The objective of this article is to demonstrate the increase of ICT investments in Egypt and its implications on the economy. The evidence compiled from the literature will be analyzed to identify a set of lessons and recommendations for future implementations in similar environments. The research method followed was qualitative based on a field survey coupled with the researcher’s impressions and interpretations of the implications of ICT diffusion within the community as well as analyzing a body of knowledge and an extensive literature survey that includes reports, articles and documents on ICT deployment and diffusion in developing nations with a focus on Egypt. The field survey addressed different stakeholders including the government, public and private sector organizations, as well as studying economic and market trends and investments including revenues and expenses in the ICT sector. This article will primarily focus on the analysis of aggregate level information on ICT investments in Egypt and its associated role on the economy at large given the identification of ICT as a driver for socioeconomic development. The field survey targeted policy makers, CEOs and managing directors from local ICT companies, multinationals operating in Egypt as well as government officials and policy makers in the ICT sector including CEOs of IT associations and agencies. 3. ICT EVOLUTION IN EGYPT The developing world, has been increasingly investing in its ICT infrastructure to benefit from the opportunities presented by emerging technologies. In that respect, since the mid 1980s, Egypt has been increasingly investing in building its ICT infrastructure. These efforts have massively increased in 1999 with the establishment of a ministry for communication and information technology (MCIT). The purpose of which is to establish a strong presence in the ICT regional and global marketplaces through the development of a healthy exportoriented ICT industry. The government of Egypt made it a priority in its agenda to focus on the growth of the ICT industry becoming a catalyst for the nation’s development efforts. Such move was seen as a platform for socioeconomic development however, it was believed that it could only yield its benefits through the creation of an enticing and comfortable climate for investment and development (Kamel, 2006). This was a collective effort that was put together by a number of cabinet ministers including the ministers of finance, investment and trade and industry. Egypt vision with regard to increasing investment in ICT aims at boosting export revenues from an IT-based service industry (Werr, 2005). According to Steve Ballmer, CEO of Microsoft Corporation, “ICT could play a major role in Egypt’s future development plans given growing interests and investments in the ICT sector” (American Chamber of Commerce in Egypt, 2006a). However, it is important to note that there are important issues that are vital for investors and businesses to encourage them to increase investment in ICT. These issues include a transparent, stable, independent and consistent regulatory environment to ensure comfort for investors, a solid legal foundation in which investors can set out the terms and conditions of their investment and a competitive environment that helps investors realize the targeted profit margins (American Chamber of Commerce, 2006b; Kamel, 2007). During the period of the 1980s and the 1990s, although not as fast as envisioned, Egypt experienced a strong economic recovery. The government had initiated an extensive economic and social reform program to bring the nation into the global economy and play an The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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active role in the newly developing global digital economy. These programs are dependent on establishing strong partnerships between the public and private sectors using the publicprivate partnership (PPP) model. Such model was successfully implemented in a number of ICT related programs such as PC for every home and the free Internet model (www.mcit.gov.eg). These projects are conducted through joint collaborative efforts between the government, the private sector, non-governmental organizations, the civil society and multinationals in the ICT sector in an attempt to diffuse ICT awareness among different segments of the community. The prospects of these projects and initiatives are high with respect to leveraging the benefits of IT for job creation and productivity growth in both the public and the private sectors (American Chamber of Commerce in Egypt, 2006a). For example, one of these initiatives involves the government and Microsoft Corporation and targets a strategic vision for socioeconomic reform in Egypt through the development and deployment of electronic government (eGovernment) Services (www.mcit.gov.eg). Another initiative demonstrates the collaboration between ICT and the education sector through the Egyptian Education Initiative (Kamel, 2006) and a third is represented by the collaboration between ICT and culture represented through the Center for Documentation of Cultural and National Heritage (www.cultnat.org). The establishment of MCIT was mainly to facilitate Egypt’s transition into the global information society, building upon existing institutions such as the Cabinet of Egypt Information and Decision Support Center (IDSC) that was established in 1985 (www.idsc.gov.eg). IDSC is credited to raise the awareness of ICT and the need to build a comprehensive information infrastructure-infostructure (Kamel, 1995). MCIT was given the responsibility of helping to realize an information society in Egypt. This has been translated into a comprehensive national program that included a number of projects and initiatives namely Egypt Information Society Initiative (EISI). These projects included developing and expanding the telecommunications infrastructure, establishing a wide information centers base, expanding the pool of information technology (IT) skilled labor and supporting the development of information systems and databases among governmental and private sector organizations (Kamel, 2004a). IDSC efforts mainly from 1985 to 1999 led to the establishment of more than 1200 IDSCs (Kamel, 2005). Moreover, 35 IT training centers were established to provide training on IT and decision support applications to government employees and fresh university graduates, as part of a nationwide effort to leverage computer literacy, enhance the computer skills of the workforce and diffuse Internet services (Kamel, 2001 and Hashem and Ismail, 1998). These efforts were directed towards minimizing the intra digital divide between urban and rural areas. These centers were spread all over Egypt across 26 provinces (Kamel, 2005). The efforts since the establishment of MCIT were dramatically improved to reach out to remote villages and underprivileged communities. The compiled efforts that started with IDSC in the 1980s and reformulated and expanded on a national scale with MCIT in the late 1990s with a focus on building an ICT industry are expected to increase exports from an estimated level of 250 million US dollars in 2005 to around 1.1 Billion US dollars by 2010 (Kamel, 2006 Werr, 2005). It is important to note that the level of ICT exports reached 450 million US dollars in August 2007 (Kamel, 2007). The expected growth represents an increase of more than 43% compounded annual growth rate (CAGR) over a period of 5 years that is dominated by massive a growth in the provision of IT Services, technical support and content Arabization (Kamel, 2006). Table 1 demonstrates the ICT exports projections by 2010 as complied by A T Kearney (2005).

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ICT Industry Element Software and IT Services Arab Content Management Technical Support Centers Contact Center Markets R&D Engineering Design Business Process Outsourcing Services IT Product Exports (Emerging Markets) IT Localization Knowledge Process Outsourcing Services Total

6

Target Revenue (Million US$) 280 200 200 115 100

CAGR

% of Total

27% 46% 27% 50% 38%

34% 12% 24% 6% 8% 2%

75

72%

45

25%

40

22%

30

43%

1,085

6% 6% 2% 100%

Table 1 – Projections of IT Exports by 2010 (A T Kearney, 2005) In the early 1990s, the government started a comprehensive economic and structural adjustment reform program aiming at generating sufficient and sustainable growth rates, improving the standard of living, reducing unemployment and bringing inflation rates to lower levels. The program has successfully achieved macroeconomic stability. Central to this success were three main pillars set by the government to allow Egypt to present itself as excellent provider of ICT services, and address development issues internally. The pillars included emphasizing continuing research and development on the applications of ICT in traditional and new industries to leverage competitiveness, providing universal access to the Internet and related services to encourage entrepreneurs and markets to fulfill their potentials and maintaining regulatory policies allowing Egypt to become an attractive foreign investment opportunity (MCIT, 2005a). Egypt is undergoing a liberalization program of its public sector, investing heavily in its human capital, encouraging foreign direct investment (FDI) and using innovative ICT as a platform for business and socioeconomic development. The government in collaboration with the private sector through a variety of public–private sector partnerships is restructuring many of its major sectors such as education, health, government reform as well as working on closing both inter and intra digital divides (www.idsc.net.eg). By the end of the fiscal year 2005-2006, the economic activity witnessed accelerating GDP growth reaching 7.4% and equivalent to over 80 billion US dollars (Ministry of State for Economic Development, 2006); with an inflation rate going down to 3.1% (Ministry of Trade and Industry, 2006). It is important to note that ICT is represented in the national accounts added to the transportation sector and its contribution to GDP is around 7% (www.mcit.gov.eg). Estimates show that unemployment is standing at 11% and the labor force is growing at around 2.7% annually (Ministry of State for Economic Development, 2006). Following are a number of efforts that were conducted to help diffuse ICT within the community and integrate within different sectors including formulating the national ICT plan, establishing an authority for technology development as well as incubators for research and development. 3.1 Formulation of the National ICT Plan Countries around the world have all embarked on developing national ICT plans to help build highly efficient and competitive industries and to establish better opportunities both for employment and exports. In Egypt, the government has established a national ICT plan to encourage private sector participation, increase ICT investments, support export capabilities The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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and create job opportunities that goes along the objective of preparing the next generations to deal with ICT. The national ICT plan represents the nation’s strategic plan for the future with ICT as an enabler. The plan aims at establishing a stronger ICT sector that enables Egypt to establish a competitive position at regional and global levels. The plan reflects a clear understanding that ICT plays a major role in empowering economic and social development, and in supporting decision makers who are addressing economic and social reforms (Hashem, 2002). Table 2 demonstrates the objectives of the national ICT plan can. National ICT Plan Objectives - To create a vibrant and export-oriented ICT industry - To support the development of a modern national telecommunications network - To increase employment opportunities in the ICT sector - To build an information society capable of absorbing and benefiting from expanding sources of information - To develop and upgrade ICT applications to improve the standards of living and support competitiveness in global ICT markets

Table 2 – Objectives of the National ICT Plan (www.mcit.gov.eg) The national ICT plan depends on several pillars that need to be established to support its successful implementation and institutionalization. This requires developing national demand for ICT through increasing awareness and encouraging its use, formulating national ICT projects and increasing the rate of investment and deployment of IT within government ministries and organizations. Moreover, it requires pursuing global markets by promoting software exports, establishing state-of-the-art ICT incubators and diffusing awareness on business in the digital economy in addition to investing in human resources development including preparing qualified professionals to develop the ICT industry and preparing qualified youth and children to enter the information age and finally spreading and increasing social awareness of ICT. Furthermore, it would be vital to establish alliances with international industries, regularly upgrading the ICT infrastructure and creating an enabling environment for the industry to grow. 3.2 Egyptian Information Society Initiative (EISI) The national ICT plan has paved the way for the initiation of the Egyptian Information Society Initiative (EISI), which was formulated around seven major tracks, each designed, when fully implemented, to help bridge the digital divide and facilitate Egypt’s integration into the global information society (UNCTAD, 2006). Table 3 demonstrates EISI elements. 3.3 Information Technology Industry Development Authority (ITIDA) In 2005, the government established the Information Technology Industry Development Authority (ITIDA) with a mission to develop the ICT sector and to enable ICT industries to boost its exports. ITIDA aims at developing the ICT industry at the national level, working towards the transfer and use of advanced ICT, increasing the chance for exporting ICT products, helping the development and growth of ICT companies, coordinating activities within the ICT industry and developing investments in the ICT industry. ITIDA main objectives are to develop ICT enabled industries through stimulating local market and industries with a focus on SMEs. ITIDA funding includes government allocations, 1% duty on selected ICT services, licensing, and income from its own services. ITIDA acts as ICT industry information center and provides market research data. Moreover, it is intended to offer technical counseling to disputing parties in the ICT industry fields.

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eReadiness “Equal Access for All” eLearning “Nurturing Human Capital” − Enabling all citizens to have easy and − Promoting the use of ICT in education affordable access to the opportunities offered − Developing a new generation of citizens by new technologies who understand and are comfortable with − Developing a robust communication the use of ICT in their daily lives infrastructure is key eBusiness “A New Way of Doing Business” eGovernment “Government Now Delivers” − Creating new technology-based firms − Delivering high quality government services to the public in the format that suits them − Improving workforce skills − Reaching a new level of convenience in − Using electronic documents government services − Developing ePayment infrastructure − Offering citizens the opportunity to share in − Using ICT can be a significant catalyst to the decision making process and greatly increase employment, creating new jobs improve efficiency and quality and improving competitiveness eCulture “Promoting Egyptian Culture” eHealth “Increasing Health Services Availability” − Documenting Egyptian cultural identity through the use of tools to preserve − Improving citizens’ quality of life and manuscripts, archives and index materials healthcare workers work environment − Offering worldwide access to cultural and − Adding value using ICT through reaching historical materials remote populations − Generate and promote interest in Egyptian − Providing continuous training for doctors, cultural life and heritage and offering the tools for building a national health network ICT Export Initiative “Industry Development” − Fostering the creation of an export-oriented ICT industry − Developing an ICT industry can be a powerful engine for export growth and job creation

Table 3 – Egypt Information Society Initiative (MCIT, 2005b) 3.4 R&D Centers of Excellence The purpose of the research and development centers of excellence is to provide a platform for performing research and development conducted by local ICT experts and ICT companies operating in Egypt. The centers will help create start-up companies specialized in the domains demonstrated in Table 4. The centers act as incubators supported financially and technically by consortiums consisting of local and multinational industrial organizations operating in Egypt coupled with defined roles and responsibilities played by private and public sectors companies, local universities, research institutions, and the Ministry of Higher Education and Scientific Research. 4. ICT SECTOR ECONOMIC INDICATORS The 1980s represented a turning point in Egypt’s focus on ICT. The government established a nationwide information project targeting the build-up of its information infrastructure. This has been perceived as a critical success factor for building Egypt's development process and as one of the major steps in building its information society. The government had put a phased implementation plan to move from the information islands through infrastructure to infostructure (Kamel, 2004b). Initially, the experience of the government with information gathering grew out of a need to provide information to the Cabinet of Egypt that could be used in supporting decisions on business, social, economic and development plans. In that respect, IDSC was formed in 1985, initially as a project labeled Information Project Cabinet of Ministers (IPCOM), as part of an effort to manage information in a way that would accelerate socioeconomic development. Later on, IDSC became an integral part of the

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national managerial and technological development plan developed and supported by the Cabinet of Egypt (Kamel, 1995 and El-Sherif and El-Sawy, 1988).

Area of Application

Stakeholders

Sponsors

Research and Development Centers of Excellence Data Mining and Wireless Mobile and Computer Technologies eServices Modeling Mobile banking, Economic, health, Design and cab dispatch planning projects deployment of traffic, mobile wireless monitoring and mesh, based on other GPS802.11, 802.16d, based services 802.16e, RFID, content development Ministry of Ministry of Health, Ministry of Transportation, Education, IDSC, Investment Banks, Institutions, Ministry of Higher Mobile Service Providers Education and Pharmaceutical Scientific Companies Research, NTRA, TE, ISPs

IBM, Microsoft, Oracle, SAS

TE and NTRA

Mobinil and Vodafone

Electronic Design Design of low cost PCs, PDA, DSP and FPGA-based electronic design, RF transceivers Ministry of Education, Ministry of Higher Education and Scientific Research, Ministry of Industry and Trade, NTRA Mentor, Cadence, ADI and Xilinx

Table 4 – Research and Development Centers of Excellence (www.itida.gov.eg) 4.1 Electronic Readiness eReadiness is the degree to which a community is prepared to participate in the networked economy. It is gauged by assessing a community’s relative advancement in the areas that are most critical for ICT adoption and the most important applications of ICT. When considered together in the context of a strategic planning dialog, an assessment based on these elements provides a robust status of a community’s readiness. The value to a community of assessing its electronic readiness lies in evaluating its unique opportunities and challenges (Kamel et al, 2004). Egypt’s efforts in building its information society are spanning a myriad of applications of eGovernment, eBusiness, eLearning and many other socioeconomic development applications. These efforts have resulted in Egypt eReadiness Index being 3.19 in 2003 (Economist Intelligent Unit, 2004). Egypt ranked 136th globally in the United Nations eGovernment Readiness Report in 2004 showing an improvement of four positions on its 2003 index (Economist Intelligent Unit, 2005). Considerable success was made in integrating ICT into government functions. Some government ministries have interactive online presence, and national eGovernment initiatives are under way to increase the number and range of services available online. Table 5 demonstrates the access indicators in Egypt.

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Access Indicators Fixed and Mobile Telephony Internet Connectivity and Access

-

Over 90% of the community has access to telephony services 13.8 million fixed line (11.2 million fixed line subscribers with teledensity of 15/100 person) 34.2 million GSM subscriber with teledensity of 37.4/100 person ISP density is 391,000 inhabitants/ISP High speed access available (ISDN, fiber links) Opportunities for public Internet access: 1.2 million households, 1742 IT clubs, cybercafés, universities, schools, government offices Low Internet prices at the cost of a local call (~ US$0.2/hr) ADSL Initiative (256kbps: ~ US$7.4/month) Over 9.47 million Internet users (including over 400k ADSL subscribers) with a teledensity of 10.29/100 person

Table 5 – Access Indicators in Egypt (www.mcit.gov.eg) 4.2 Telecommunications The expansion of telecommunications services and related infrastructure is a national development priority and the telecoms network has undergone extensive modernization in recent years (Economist Intelligent Unit, 2007a). Egypt is home to the largest fixed network in the Arab region, accounting for over 25% of all the telephone lines. The growth of telephone lines averaged around 15% per year, during the period 1995-2000, and fixed-line teledensity almost tripled between 1990 and 2000. Egypt Telecom sector is performing consistently well with most sub-sectors being open to competition. Around 3,000 new fixed telephone lines are installed in the country every day, which has helped to reduce the waiting list, by around 95% in recent years. Telecom Egypt (TE), a highly profitable organization, was partially privatized through an initial public offering (IPO) at the end of 2005. The expected end of its fixed-line monopoly in 2008 will open up new opportunities for competitive service providers including mobile licenses that generate substantial revenues to the government reaching 2.9 billion US dollars (Kamel, 2006). Efforts are underway to roll out next generation networks (NGN), offering converged IP-based voice and data services. Table 6 demonstrates the development in the sector from October 1999 until May 2008 (www.mcit.gov.eg). As indicated earlier, the telecommunications infrastructure has increased dramatically since 1999. Launched in 1988, Egypt Net, the packet data network owned by TE, was the first packet switching network in the nation to offer data services to the public. The data network provides basic services for business customers and is a backbone for sophisticated and ever growing needs of different economic activities that is mainly related to high-level information technology infrastructure. TE targets the provision of telephony to all citizens by December 2008 (www.mcit.gov.eg). With regard to the introduction of digital mobile cellular service, TE launched the first GSM network in November 1996. Today, three mobile operators, Vodafone Egypt, MobiNil and Etisalat are attracting customers. Mobile growth has been spectacular, due to the diversity of services and the introduction of pre-paid service by 2001; there were more than 2 million subscribers. Currently the mobile service is up to the level of the international standards of quality service and reached over 34.2 million subscribers (www.mcit.gov.eg).

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October March 1999 2004

March 2005

August 2005

October 2006

August 2007

May 2008

Detail

Item

Fixed Services

Fixed Phone Lines

6.4 million

11.6 million

12.1 million

12.5 million

13.2 million

13.7 13.9 million million

Fixed Phone Line Subscribers

4.9 million

9.1 million

9.6 million

10.2 million

10.7 million

11 11.2 million million

Waiting List for Fixed Phone Lines

1.3 million

93,000

63,000

66,000

50,000

36,300 11,342

Public Phone Cabinets

13,305

48,983

54,346

55,352

55,757

56,453 57.965

Mobile Phone Subscribers

0.7 million

6.1 million

8.6 11.2 million million

16.7 million

25.6 34.2 million million

Mobile Phones Density

0.98

8.9

12.3

15.8

19.6

34.7

37.4

Mobile Operators

2

2

2

2

2

3

3

20 Mbps

1.1 Gbps

2.4 Gbps

3.3 Gbps

8.3 Gbps

10.29 Gbps

24.192 Gbps

0.3 million

3.2 million

4.3 million

5.0 million

6.0 million

7.56 9.47 million million

Mobile Lines

Internet Internet Penetration Capacity Internet Users

Table 6 – Telecommunications Infrastructure Indicators (www.mcit.gov.eg) 4.3 Internet Connectivity The Internet is evolving as a factor affecting business and socioeconomic development. The increase of the number of users and the amount of businesses transforming online has been increasing gradually. However, its use is constrained by cost, language, literacy rates, infrastructure inadequacy and shortages in skills. The Internet in Egypt started outside the telecommunication sector, where services were first introduced in Egypt in October 1993, by the Egyptian Universities Network (EUN) and IDSC. In March 1996, a decision was taken by the government, opening the door for commercial Internet services. Represented by IDSC and TE, the government started developing an Internet backbone and gateway facility to serve at the time 12 private sector ISPs compared to today’s 207, providing commercial Internet services in Egypt for the first time. However, still in its infancy and hindered by legal and regulatory hurdles (Economist Intelligent Unit, 2007a). With the formation of MCIT, the Internet as well as the telecommunication sector started to witness a remarkable reform process. In 1998, Law 19 had transformed TE, the state owned incumbent operator to a joint stock company. The government also created and assigned all regulatory functions to the National Telecommunication Regulatory Agency (NTRA) as an independent regulator. MCIT then started launching a number of initiatives to The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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expand broadband capacity and establish a reliable, fast Internet backbone. Several ISPs were licensed by NTRA to build their own data backbones and expand their broadband capacity by obtaining separate international gateways. Introducing competition to the local Internet and data backbone market was a serious step towards providing end users with maximum capacities and best available service at the minimum costs possible. This coincided with another initiative that was introduced and backed up by the government, Egypt’s Free Internet Initiative, which started in January 2002, pushing TE and other licensed data backbone operators, to expand their networks in terms of capacity and coverage. Moreover, with the strong support from the government, coupled with TE opening its exchanges nationwide to interconnection and licensed operators being permitted to co-locate their equipment all across the nation, all this resulted in a significant increase in the number of Internet users, reaching 7.56 million in 2007, including around 350,000 broadband subscribers (Economist Intelligent Unit, 2007b). Such boom was also helped an active role played by the regulator who lowered prices twice in July 2006 and in July 2007, with the entry level package currently priced at 7.4 US dollars a month (www.mcit.gov.eg). 4.4 Software Industry The software industry is growing and is attracting considerable investment from the private sector, in addition to the government incentives supporting the sector (www.expolink.org.eg). Nevertheless, it is still in an early development stage covering four main market segments (Kamel, 2004b) including software tools, packaged applications, customizations of existing applications and Arabization. Egyptian software exports were estimated at 100 million US dollars in 2001 and they increased to reach 250 million US dollars by 2005 (Gramos, 2006). The number is expected to hit 1.1 billion US dollars by 2010. The number of companies working in the software industry is nearly 300 with over 8500 professionals employed. This number reflects around 13% of the total number of companies operating in the ICT sector with a focus on a number of IS applications. It is important to note that price competition between vendors is lowering the profitability of software support services and could affect the growth of the market in the coming years (Gramos, 2006). With a vision to become the IT hub for the Arab region, Egypt has become the major software exporter to most countries in the region, competing with Jordan and the United Arab Emirates. In 1999, Egypt supplied 70% of the demand for software from the Gulf region, primarily represented by the United Arab Emirates and Saudi Arabia (Kamel and Hussein, 1999). Multimedia-related products such as cultural, educational, entertainment and religious CDs are the leading products exported to the region (www.idsc.net.eg). The majority of Egyptian software companies have established branches in United Arab Emirates, Saudi Arabia, Bahrain and Oman. In recent years, numerous programs have appeared in Egypt to promote exports among different sectors. Not surprisingly, boosting IT exports has been set as a major priority in almost all of them. Examples of such export development programs are those of the Center for Business Support, the Egyptian Exporters Association under the Growth through Globalization Program (www.expolink.org.eg). The government has a comprehensive program to support the software industry that includes a series of incentives such as formulating legislations offering five-year tax holiday for all software companies and 10-year tax holiday for the software companies establishing their operations in newly established industrial zones. Moreover, the government has removed customs and sales tax on selected software applications that had previously been set at 5% and 10%, respectively (MCIT, 2005b).

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5. ICT INVESTMENTS IN EGYPT How can ICT contribute to development is a major concern for many nations undergoing developmental programs. The old debate of the 1990s over choosing between ICT and other development imperatives such as ICT in developing nations draws precious resources away from more urgent developmental needs has now shifted from one of tradeoffs to one of complementarities (World Bank, 2003). Today, there is a growing acceptance that ICT provides more efficient methods of production, bringing unattainable markets to the reach of producers, improve government services and increase access to basic social goods and services by the community. According to the World Competitiveness Report of the World Economic Forum, Egypt is ranked 5th of 59 countries in terms of having investment in infrastructure as a priority for the government (World Competitiveness Report, 2000). Such growing acceptance let investments in ICT become a major research issue for academia and industry (Mbarika et al, 2003) because these investments often are reflected in other sectors as well as have an effective role in improving the overall infrastructure of different sectors. From a developing nation’s perspective, the key to poverty reduction is sustained economic growth. Respectively, by diffusing ICT and increasing its production and use, significant contributions could be made to economic growth. In the case of Egypt, the ICT market generates around 2.9 billion US dollars of annual revenues, almost 2.5 billion US dollars (86%) is from telecommunications and about 450 million dollar due to IT exports (Kamel, 2007). The government is sustaining its ongoing economic and institutional reforms, infrastructure development and global integration to enhancing Egypt's competitiveness globally and in the region (Kamel, 2006). According to IDC, spending on hardware and software, services demand for software grew by 48% between 2000 and 2004; Egypt now boasts the largest software sector as a fraction of its IT sector in the region (BMI, 2006). During the last three years, the number of companies working in the ICT industry has more than doubled, sustaining an increasing growth rate reaching an average of 30% annually, which is significantly higher than the growth rate realized in other traditional economic sectors. Such increase in the number of companies was a result of the increasing investments in the sector that created over 35,000 jobs opportunities in addition to over 150,000 related, through indirect, jobs created in the ICT sector (www.idsc.net.eg). Today, the total number of ICT companies in Egypt is 2269 companies as of August 2007 (www.citegypt.com). Table 7 demonstrates the investments in the ICT sector in Egypt during the period 1986-August 2007. Item Number of established IT firms Capital issued for established IT firms (million US$) Investment costs of established IT firms (million US$) Employment opportunities in IT firms

Unit Company

Law 8 1816

Law 159 417

Free Zone 36

US$

3,115.4

99

17

US$

0

0

20.9

Employment Opportunity

0

0

2941

Table 7 – Investment in the ICT Sector in Egypt 1986-2007 (www.citegypt.com) According to the General Authority for Investment (GAFI), investments in the ICT sector coupled with foreign direct investments has led to sustaining a phenomenal annual growth rate of 20% in the ICT sector over the last few years (Kamel, 2007). Further analysis of the information reveals that the growth rate of the IT companies’ capital investment is The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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higher than the growth of the telecom companies’ capital investment. In that respect, the capital investment of IT companies increased from 175.4 million US dollars in 1999 to 701.8 million US dollars in 2006, while the capital investment of the telecom companies increased from 877.2 million US dollars in 1999 to 2.3 billion US dollars in 2006. However, to be able to assess the impact of ICT investments on the economy, it is important to understand the structure of the economy and the role ICT play as an important vehicle for development. ICT had a major contribution in restructuring government services as well as supporting through collaborative projects sectors such as education and health. Moreover, the ICT sector in Egypt had an invaluable contribution over the last two decades to GDP growth with around 3.13 billion US dollars of foreign direct investment during the period 1998-2004; 3.97 billion US dollars for the period 2006-2007 and until August 2007 over 522 million US dollars (Kamel, 2007). 6. IMPACT OF ICT INVESTMENTS The ICT sector in Egypt is considered a catalyst for economic development. The sector is a role model for reform especially with its mode of operation that is based on a multistakeholder approach that includes multinationals, the private sector and the civil society. The implications of the massive investments in the telecom sector for example led to a unique growth rate globally in the rate of mobile user penetration that exceeds 50% (Kamel, 2007) which is one of the highest growth rates in the world and that reflects a strong and healthy purchasing power in the community and demonstrates signs of economic growth. Moreover, the investment in ICT helped modernize Egypt National Postal Organization (NPO), one of the oldest in the world (early 19th century), connecting over 3,500 outlets all over the nation’s 26 provinces. The impact of the increase in ICT expenditure has created a variety of opportunities for NPO and helped it to modernize and diversify its activities that include providing societal services, eGovernment services and financial services (www.mcit.gov.eg). Moreover, the investment in ICT diffusion as an integral element in the build-up of a comprehensive and state-of-the-art infrastructure that can enable a platform for socioeconomic development has been perceived as a vehicle for innovation and education, for better health services, for improved government services and for empowering the private sector. For example, in the telecom sector, the government has invested over 1 billion US dollars over the last 5 years (American Chamber of Commerce, 2007). Moreover, local and multinational telecom companies have been investing in building and improving their infrastructure because of the potential revenues that have been growing by 30% annually on average between fixed and mobile lines (Kamel, 2007). Additionally, the contribution of the telecom sector has been remarkable to GDP exceeding 4.35 billion US dollars during the period 2006-2007. Such inflow of resources was due to a) floating 20% in an IPO of TE; b) granting a license to a third mobile operator and c) upgrading the license of Vodafone Egypt to 3G. It is important to note that the sector transformed itself from competing for subsidies and grants to a revenue-creating sector for public proceeds. More FDI is expected in the years to come as part of the ICT strategy for the period 2008-2010 to provide new licenses for international submarine cables, more fixed line operators with converged services, triple play services and the introduction of WiMax (Kamel, 2007). The ICT investments in Egypt are geared to serve the nation’s strategic objective, which is using ICT for development. Therefore, a number of cross-sectoral projects were formulated whereas ICT was recognized as a catalyst for providing health, government, education and content services. These projects are implemented through PPP models. With respect to content, Egypt is rich and has a wealth of entertainment, cultural and scientific content that is currently being digitized. This is rendering the ICT infrastructure as the platform for knowledge dissemination. Strategically, ICT can help create innovative revenueThe Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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sharing models between telecom operators and content providers where the future growth of the ICT sector will be in content management and delivery once infrastructure saturation is reached. Such content will be delivered to over 60% of the population (76 million) that is under the age of 30 (www.idsc.net.eg). With respect to education, the Egyptian Education Initiative (EEI) is another PPP model project that was launched in May 2006 involving the World Economic Forum (WEF) and ICT multinationals operating in Egypt including Intel, Microsoft, Alcatel Lucent, Oracle, and Cisco to connect 8,000 schools and to train over 80,000 teachers becoming ICT literates. Investing in human resources is an important factor for realizing the anticipated benefits from investing in ICT that can be achieved if the challenge of availing enough technical competence and limited human resource capacities is realized (Qiang, Pitt and Ayers, 2003). With respect to health, ICT investment has improved the infrastructure in 400 clinics networking them and introducing contact centers and wireless services (Kamel, 2007). Moreover, it improved the information dissemination and knowledge acquisition process for the overall advantage of public health as well as it assisted in reducing the cost and increased the efficiency of public health services. Multinationals in the ICT sector are increasing their investments and activities in Egypt. For example, Microsoft uses the nine-language local Xceed contact center as their support center for global products. Orange and France Telecom have 1,200 engineers managing their networks nationwide 24/7 with plans for expansion. Indian companies are starting to have presence in the local market. Moreover, business process outsourcing is booming with a focus on software development. Some local companies are also starting to invest outside Egypt such as Orascom Telecom, which currently owns mobile operators in a number of European, Asian and African markets. Additionally, TE is extending its investment outside Egypt. All these revenue-generating vehicles are contributing positively to the GDP. Table 8 demonstrates the increasing contributions of ICT multinationals to the economy through their investments and creation of employment opportunities. Company IBM Mentor Graphics Intel Microsoft Cisco Oracle Orange and France Telecom Alcatel Lucent Satyam ZTE and Huawei

Activities and Projects Software Development Center employing 400+ skilled IT developers focusing on Arabization Design Center employing 170+ engineers Regional Platform Definition Center Regional Software Enablement Lab Developer Support Center for Regional Developers Software Innovation Center Core Competency eLearning Institute Global Support Center employing 600+ engineers providing regional customer support Global Support Center employing 1200+ engineers International Support Center employing 300+ engineers providing GSM and wireless support services Business Process Outsourcing Services with 200+ engineers WiMax Research and Development Centers

Table 8 – Value Added Service Investments by Multinationals in Egypt (www.mcit.gov.eg) It is important to note that the government has provided different incentives to attract global IT companies to invest in Egypt. The incentives include reducing total transaction cost through diffusing more efficient means of inter and intra business communications. The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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Additionally, entry barriers were removed especially for relatively small capital ventures and entrepreneurs, thereby promoting small and medium size enterprises and new entrants as well as allowing the effective management of supply chains leading to better processes such as procurement, inventory control, production, and quality control ultimately reducing production costs. Moreover, other incentives include improving the efficiency of distribution, sales and marketing. It is important to note that all the government initiatives are driven by the expectations that investments in the ICT sector will pay off in creating a more competitive ICT industry in Egypt and thus increasing its share of exports and respectively hard currency generation. The government, in that attempt, realizes that as the technology level of Egypt increases so will its per capita GDP (Easterly and Rebelo, 1993; Madden an Savage, 1998). This is especially true for Middle East North Africa (MENA) countries where there are significant opportunities for development and where growth rates can well exceed world average. This can be realized through four different platforms. Firstly, increasing productivity by adopting different structures and using emerging technologies; secondly, promoting economic growth and social services such as health and education; thirdly, investing in ICT that is significantly correlated with growth (Easterly and Rebelo, 1993) and fourthly, developing rural communities because teledensity is positively correlated with the level of income (Hashem, 2002; Kamel and Hussein 2000; MCIT, 2005a). Through tax incentives and economic zones, the government created a fostering environment for ICT development. For example, the smart village technology park represents a mini-model for Silicon Valley. Moreover, the recent incentives embedded in the new tax and customs laws (2005) provide opportunities to encourage foreign companies to invest in the ICT field. According to Booz Allen Hamilton (2005), ICT plays a pivotal role by acting as an enabler to other dependent industries and impacts individuals and the society. The literature indicates that a highly developed ICT sector affects a number of socioeconomic elements including creating income opportunities, supporting infrastructure services, driving improvement in basic rights and supporting the sense of inclusion. Moreover, ICT further contributes to GDP growth and to the creation of employment opportunities. Table 9 demonstrates a number of economic sectors that benefit from ICT and consequently contribute to socioeconomic development (Booz, Allen Hamilton, 2005). Sector Transportation Health Education Agriculture Manufacturing and Trade Tourism Financial Oil and Gas

Basic Rights 9 X 9 X 9

Income Opportunity 9 9 9 X 9

Inclusion Infrastructure Services 9 X X X 9 X X X 9 9

Long-Term Sustainability X 9 X X 9

9 X X

9 9 9

9 9 X

X 9 X

9 9 9

Table 9 – Impact on other Economic Sectors (Booz, Allen Hamilton, 2005) According to Kearney (2005) investment in ICT with an export-oriented vision could create around 35,000 engineering jobs, 15,000 support jobs, an additional 800 million US dollars in export revenues, 5% increase in export revenues and could lead to establishing Egypt as one of the global top players in off-shoring in IT, engineering and service center market.

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7. RECOMMENDATIONS The dramatic decline in computing and telecommunications costs over the past decade and the emergence of new ICT tools, techniques and platforms made it possible and increasingly inexpensive to move capital, labor, knowledge and ideas across national borders. In the new ICT age, success comes to those organizations that can find out and combine these technologies to create a competitive edge in today’s global marketplace. Because ICT issues cut across borders in terms of coverage and reach, Egypt recognized that creating regional and international synergies is essential and formulating alliances and partnerships are invaluable for the process of development and growth. There are four critical dimensions affecting developing nation’s ability to harness ICT for development on the global level. These dimensions include engaging on equal footing in the negotiation process on ICT policies. This would apply both at the regional and international levels to actively help shape the global agenda and integrate it into relevant treaties and agreements. Another dimension is meeting the qualifications to attract and manage development assistance and foreign direct investment in addition to establishing partnerships with global partners according to national priorities and in coordination with the national eStrategies and forging a place in the global ICT market. It is important to note that the delay in responding effectively to these dimensions has for a long time wasted valuable resources, hindered developing countries’ full engagement in the growing information society and marginalized them in the decision making process. Therefore, Egypt has been keen to formulate new relationships with regional and international partners to open channels of communication, as well as develop mutually agreed-upon policies and performance targets and standards. In order to realize the full potential of the ICT reform in Egypt, the following plan needs to be thoroughly considered. − To develop comprehensive support programs that target increasing the competitiveness of local ICT companies. − To leverage economic reform steps that can help create an enticing environment to promote FDI vital to bring emerging ICT to Egypt. − To overcome trade barriers that exist among Arab countries allowing Egypt to realize economies of scale building on its Arab, African and Mediterranean identities to extend its market reach to capture the content market for Arabization and Arabic language applications. − To continue investing in building ICT human resource capacities and professionals to help bridge and help improve the intra and inter digital divides. − To establish more PPP to create the proper and flexible environment to retain young professionals and provide them with competitive offers that other markets are offering. − To proceed with the liberalization agenda for the telecom sector. − To complete the universal access plan to induce critical mass deployment of ICT. − To build more economic zones and technology parks with the aim of attracting FDI as well as building local expertise in ICT. 8. CONCLUSION This article, to some extent, demonstrated that in the case of Egypt rational and steady ICT investments contributed to the economic development of the nation representing an encouragement to governments of other developing nations with similar environment. The benefits realized helped the ICT sector become a catalyst for development for the national at large with various implications on different sectors. It is important to note that achieving a successful quantum leap at the national level requires stakeholders, including the government, the private sector, multinationals and the civil society across different sectors The Electronic Journal on Information Systems in Developing Countries http://www.ejisdc.org

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and not just ICT to collaborate to driver ICT growth. Moreover, ICT for development investments strategies are not enough to impact economic growth. Investment in education, healthcare, industry and the formulation of a health business climate have equal importance. The simplistic assumption that ICT are conduits of development may result in ineffective ICT for development strategies and the misallocation of vital resources. REFERENCES American Chamber of Commerce in Egypt (2006a) Microsoft CEO Outlines Future of IT, October 19th, http://www.amcham.org.eg/Publications/AnnualReport/06/Events06.asp American Chamber of Commerce in Egypt (2006b) A Decade of IT Growth, January 2nd, http://www.amcham.org.eg/operation/events/events06/smart_village/Smart_Village.asp. American Chamber of Commerce in Egypt (2007) Information and Communications Technology Developments in Egypt, May: http://www.amcham.org.eg/bsac/studiesseries/Report50.asp . Baily, M.N. (1986) What Has Happened to Productivity Growth? Science, 234, 443-451. Bhatnagar, S. (2005) ICT Investments in Developing Countries: An Impact Assessment Study, Information Technology in Developing Countries, Newsletter of the IFIP Working Group 9.4, 15, 2, 1-8. Booz Allen Hamilton (2005) ICT Sector Development: Economic and Societal Implications, February: http://www.amcham.org.eg/publications/BusinessMonthly/April%2005/corporateclinic (abstractthoughts).asp . Brynjolfsson, E. (1993) The Productivity Paradox of Information Technology, Communications of the ACM, 36, 12, 67-77. Business Monitor International (2006) Egyptian Information Technology Report, BMI, August. Checchi, R.M, Hsieh, J.J.P.A and Straub, D.W. (2003) Public IT Policies in Less Developed Countries: A Critical Assessment of the Literature and a Reference Framework, Journal of Global Information Technology Management, 6, 4, 45-64. CIT Egypt (2007) www.citegypt.com. Cultnat Project (2007) www.cultnat.org. Dewan, S and Kraemer, K.L. (1998) International Dimensions of the Productivity Paradox, Communications of the ACM, 41, 8, 56-62. Dewan, S and Kraemer, K.L. (2000) Information Technology and Productivity: Evidence from Country-Level Data, Management Science, 46, 4, 548-562. Dos Santos, B.L. (1991) Justifying Investments in New Information Technologies, Journal of Management Information Systems, 7, 4, 71-89. Easterly, W and Rebelo, S. (1993) Fiscal Policy and Economic Growth: An Empirical Investigation, Journal of Monetary Economics, 32, 417-458. Economist Intelligence Unit (2004) Egypt Country Profile, Economist Intelligence Unit, www.economist.com/countries/Egypt. Economist Intelligence Unit (2005) Egypt Country Profile, Economist Intelligence Unit, www.economist.com/countries/Egypt. Economist Intelligence Unit (2007a) Industry Briefing, Egypt Telecoms: Infrastructure and Investment, Economist Intelligence Unit, www.economist.com/countries/Egypt. Economist Intelligence Unit (2007b) Industry Briefing, Egypt: Telecoms and Technology Profile, Economist Intelligence Unit Report, www.economist.com/countries/Egypt. Egyptian Exporters Association (2007) www.expolink.org.eg. El-Sherif, H and El-Sawy, O. (1988) Issue-based Decision Support Systems for the Cabinet of Egypt, MIS Quarterly, 12, 4, 551-569.

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