For businesses that vehemently seek to gain a powerful edge against their competitors and emphasize expanding their strategic manufacturing, retail, or IT goals, outsourcing has predominantly been amongst the best solutions in the world to do this. Not only does it help UK manufacturers in Egypt boost their productivity and operational consistency, but it also helps minimize overall labor costs and overheads, leading to vital savings on a day-to-day basis.

With an opportunistic, enabling, and potentially prosperous business landscape combined with encouraging government-backed economic support and legislation, the availability of cheap yet very qualified labor and talent, and a quickly developing digital ecosystem, Egypt has primed itself to become the manufacturing outsourcing destination of choice of the UK as well as several other developed nations.

As per the statistics posted by Kearney’s Global Services Location Index of 2023, Egypt sits at the 23rd spot out of 78 countries that are favored for outsourcing.

Powerful Advantages of Outsourcing Manufacturing to Egypt for UK Manufacturers and Businesses

Multilingual Talent and a Rising IT Economy

When it comes to information technology and the drive to implement digitally-enabled business strategies, Egypt has one of the biggest workforces in the digital sector throughout the globe. In addition, a large number of skilled human resources are engineers.

Moreover, out of more than 530,000 annual graduates, around 50,000 students end up furthering their careers in the IT field, pursuing relevant academic qualifications, and continuously expanding the talent pool.

Furthermore, a lot of Egyptians are quietly fluently capable of speaking multiple languages, with English being the dominant second language. Combined with their technical prowess, education, and productive work ethic, Egyptians make for proficient and skilled manufacturing workers.

Every year, there are over 90,000 individuals who graduate with English-language diplomas, certifications, and degrees. All of this is a wonderful marker for UK manufacturers who seek to lower their operational costs while eliminating the language barrier along accessing a talented and educated workforce.

The Benefit of Low Labor Costs

While Egypt is known for its growing talent pool in terms of its skilled workforce, what it is more popular for, however, is its remarkable cost efficiency. For example, compared to other developed and underdeveloped countries such as Morocco, Turkey, and Poland, Egypt can provide foreign businesses with up to 80% labor-based cost savings.

This is mainly due to a stark devaluation of the Egyptian pound over the years. Not to mention the fact that the country’s currency depreciated up to 50% in 2022. This loss in economic value has made it infinitely more seamless and simpler for expanding operations in Egypt for UK manufacturers along with numerous other businesses from across the globe to outsource their operations in Egypt.

According to a 2023 analysis, it was reported that the average monthly income of an Egyptian is around EGP 9,200 or more than 100,000 per year. The former roughly amounts to just over $300. This decrease in the cost of labor is not even a fraction of what it is in the UK. In the UK the average monthly income is £1,950 or £29,600 per year, just over $2,400 per month.

Geographical Superiority 

There is no question that Egypt has geographical advantages being situated smack at the center of the Mediterranean further bolstering its appeal. Another equally wonderful thing about the country is that its time zone more or less matches that of European and Asian countries, along with the US. This in itself is a very motivating factor, encouraging foreign businesses to implement an environment of seamless communication and coordination, especially for UK manufacturers who have global clients.

In addition, Egypt has a relatively young population. As per statistics, it was determined that there are more than 74 million people in the country that fall in the under-forty age bracket. Moreover, up to 80% of the population is working class and can speak fluent English as well as a combination of other European languages.

The country’s geographical proximity to some of the world’s biggest worldwide markets helps brilliantly facilitate effective and streamlined supply chain and product distribution management. Furthermore, Egypt has a very modern and well-constructed transportation infrastructure. This includes contemporary seaports, road networks, and airports, all of which consistently propel its importance as a manufacturing hot spot for the UK.

Bottom Line

So there you have it, a comprehensive look into why Egypt is quickly ascending the charts to become a powerful and in-demand manufacturing and IT hub across the world. The country openly embraces foreign direct investments, allowing UK manufacturers expanding operations in Egypt. This is also where the One World comes into play.

We have an expansive network of local human resource consultation groups in the country allowing us to source the right skilled labor for your operations. Not to mention, we have several partnerships in the region along with the experts that can help UK-based companies start their manufacturing operations in Egypt more seamlessly and affordably.

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