Overview
Egypt’s safety and security market is experiencing steady growth, with an anticipated increase of 15–20 percent over the next few years. The government’s objective to enhance security measures necessitates upgrades across airports, seaports, prisons, and public facilities. Both the public and private sectors are reevaluating and upgrading security systems and technologies. U.S. market share currently stands at about 20 percent in the non-governmental sector.
Key Government Buyers
- Ministry of Interior: Responsible for internal security, including police forces and border control.
- Ministry of Defense: Oversees military procurement and defense infrastructure.
- General Intelligence Services (GIS), Ministry of Interior: Handles national intelligence and counterintelligence operations.
- Egyptian Procurement Office (EPO): Manages procurement processes for defense and security equipment.
Market Dynamics
- Modernization Initiatives: The Egyptian Armed Forces are undergoing modernization, phasing out older systems in favor of more advanced platforms. This includes the development of unmanned aerial vehicles (UAVs) and smart munitions by domestic companies like Robotics Engineering Systems and Amstone.
- Private Sector Involvement: Companies such as Robotics Engineering Systems and Amstone are contributing to Egypt’s defense capabilities through the development and production of advanced defense and security solutions.
- Cybersecurity Demand: With the increasing reliance on digital infrastructure, there is a growing demand for cybersecurity solutions. The Egyptian cybersecurity market is projected to reach $161.10 million by 2025, with a compound annual growth rate (CAGR) of 15.54 percent from 2025 to 2029.
Procurement Process
Procurement processes vary based on the sensitivity and scale of the project:
- Small Projects: Handled by in-country offices via direct procurement orders.
- Large Projects: Require supervision in the design process, involving specialists from the Ministry of Interior, Egyptian General Intelligence Services, Ministry of Defense, and others.
- Competitive Bidding: Product components may be obtained through a competitive bidding process or an open request for quotation (RFQ) issued by the Egyptian Procurement Office (EPO).
For registration with the EPO.
Market Opportunities
- Surveillance Equipment: There is a growing demand for advanced surveillance systems to enhance public safety and monitor critical infrastructure.
- Border and Perimeter Control: Upgrades in border security necessitate the acquisition of modern control equipment.
- Cybersecurity Solutions: With the increasing digitalization of services there is a heightened need for robust cybersecurity measures.
- Police Modernization: Ongoing efforts to modernize police forces create opportunities for suppliers of communication systems, surveillance equipment, and protective gear.
Challenges
- Regulatory Hurdles: Navigating the complex regulatory environment can be challenging for foreign companies.
- Export Licensing: American companies must be aware of U.S. export controls and the export licensing process. Counseling is available through the Bureau of Industry & Security.
Defense Trade Shows
Egypt hosts two major defense exhibitions:
- Egypt Defense Expo (EDEX): Held biennially with the next edition scheduled for December 1–4, 2025.
- Egypt International Airshow: Held biennially with the next edition scheduled for 2026.
Both events provide platforms for showcasing advancements in air, land, and sea military technologies and offer opportunities for networking and business development.
Conclusion
Egypt’s safety and security sector offers significant opportunities for American companies specializing in advanced technologies. By understanding the procurement processes and establishing local partnerships, businesses can effectively navigate the market and contribute to Egypt’s security advancements.
For information on the Safety and Security sector, contact:
Basim Sedki
Commercial Specialist
U.S. Embassy Cairo