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The IT market in Egypt is forecast to return to growth in US dollar terms in 2025 as economic conditions become less challenging with moderating inflationary pressures and less foreign exchange volatility. The medium-term outlook is positive based on this core scenario for the economy as well as the growth potential created by investments in data centres, data networks and cloud services in Egypt in recent years, which will be a foundation for faster digitilisation once sentiment recovers. There could also be a positive impact from generative AI later in the forecast period from lower digital project costs and accelerating digital transformation. However, there are significant downside risks because private sector sentiment and investment will remain sensitive to economic and geopolitical factors in the short-to-medium term.