BREAKING: Intel Closes its Office in Egypt

10 Apr, 2014

intel-logo
Another sad and bad news for troubled Egypt, Intel is closing its offices in Egypt and firing all employees according to sources in Egypt.

Intel confirmed the news and said its closing its R&D and engineering unit in a statement sent to the media Intel said that it is committed to the Egyptian market and the decision have nothing to do with political situation in Egypt or anywhere else, rather a consideration of operations Munich and Bangalore.

In 2011 Intel made its first acquisition of an Egyptian company by acquiring Wireless startup SySDSoft

Whatever Intel says about the motivation for this decisions and Whether Intel will keep its sales arm in Egypt or not it is a bad news for Egypt since closing Intel’s R&D arm in Egypt is bad for the technology sector in Egypt and a loss for the engineering talents Egypt needs to grow its engineering base.

The importance of Intel’s R&D arm in Cairo for Egypt’s economy and its technology ecosystem is that it provides them know-how and engineering experience and excellence which is important to have in Egypt’s tech ecosystem as those engineers can start their own companies after gaining experience and knowledge from Intel, not to mention is that those engineers can become employees of other Egyptian tech companies.

So based on that Intel’s decision harms the tech ecosystem in Egypt and its economy. Taking into account that other International tech companies sclosed their offices in Egypt, such as Yahoo’s decision to close its office in Cairo in Oct. 2013.

We can say that the military coupe in Egypt has failed the tech ecosystem in the country and its economy in general. UPDATE: Since it failed to at least convince Intel to keep its R&D office in Egypt, not to mention the instability the coupe has caused to the country has created high risk the environment and investors whether they are companies or individual do not invest in high risk countries.

Here is the full statement from Intel:

“Intel is committed to the Egyptian market. We have employees from other Intel business teams in Egypt. For more than a year Intel has been clear about its need to work to improve the company’s overall effectiveness and competitiveness.  The decisions related to our engineering team in Egypt are part of that process.  To be absolutely clear our decision are being made to improve the company and those decisions have nothing to do with political situation in Egypt or anywhere else.

Intel Egypt will continue to be actively present in the market. The Intel Business Unit responsible for employees impacted by this decision in Egypt has decided to consolidate its operations in Munich and Bangalore. Intel is in communication with the impacted Egyptian employees for potential international relocation and new job opportunities within Intel are part of our ongoing discussions with employees.  Intel wants to be very clear, actions being taken in Egypt are Intel business unit decisions only.”

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

  1. Iman  |  April 10th, 2014 at 5:18 PM #

    There is quite an inconsistency in your article. on one hand you mention that Intel closed its office in Egypt due to an outsourcing study which favored Banagalore and Munich, furthermore they have confirmed that this decision has nothing to do with the political situation in Egypt(twice in their statement).
    and then at the end of the article on a totally unrelated note you mention that the military coup (no e) has failed the Egyptian Economy?!!!!

  2. Gaith Saqer  |  April 10th, 2014 at 5:51 PM #

    Thank you Iman for your comment. we can not say that Intel is honest about the reason for this closure but make no mistake the political situation has caused many companies to close in Egypt that is first second lets assume that Intel is honest then the coupe regime in Egypt has at least failed to convince intel to keep its R&D office in Egypt, whatever was the motivation for intel the Egyptian government has failed.

  3. Aley Eladawy  |  April 10th, 2014 at 9:44 PM #

    I believe your stance on reporting Intel’s decision is quite biased, Mr.Saqer. Intel has clearly stated that this has nothing to do with the political situation in the country, and that it’s solely an outsorcing strategy carried on by the mother company.
    Also, in your reply to Iman’s comment, you state that “whatever the motivation for Intel was, the government has failed.” You’re clearly biased against the government in this statement. The government would only have failed if the sole motive behind Intel’s decision was due to the incompetency of the Egyptian government, which, again, isn’t the case, as Intel has stated.

  4. Gaith Saqer  |  April 10th, 2014 at 10:55 PM #

    Aley no it is no it is not biased it is based on facts, I personally do not believe Intel in its statement which i stated in a comment, 101 economics: investors flee a country that is not stable and in political and security problems, whatever Intel says it is clear that the political and security situation is behind this decision. for the R&D center to work there will be visits from Intel managers and experts from outside Egypt specially USA, would you think they would be welling to risk their lives and visit Egypt as there are daily demonstration and clashes between demonstrators and the police. and many Egyptians are dying daily by the hands of the coupe regime? not to mention is that the coupe is facing a growing guerrilla warfare by Ansra Bait Al Maqdes and Ajnad Maser who are both targeting the Egyptian police and army with assassinations and bombing any executive from Intel would risk his live working under these conditions.

    International company one after the other is closing their operations in Egypt, are they all closing because they are restructuring or because of the political situation? take Yahoo for example they did not attribute the closure of their offices in Cairo due to political instability! believe me they lie! it would not look good for them to say we are leaving Egyptians alone it is not good for their PR.

    second lets assume that it is true that the political situation is not the reason, the Egyptian government failed to convince Intel to keep its R&D arm in Egypt. Did they in anyway talk to them if any? did they try to offer them incentives to stay? so the Egyptian government is to blame,

    What did the coupe bring to Egypt? political unrest, economic poverty, insecurity, mass killing of innocent Muslims, mass arrest of political activists, fabrication of crimes for many, closure of thousands of charity organizations who feed millions of the poor, tyranny, fighting Islam and above all a Zionist pimp to rule Egypt.

  5. Aley Eladawy  |  April 10th, 2014 at 11:05 PM #

    In your first paragraph, you stated that your comment is not biased but rather based on facts. Yet somehow, right after that statement, you said “I personally believe ..” Once more, sir, your choice to believe that this isn’t the real motive behind Intel shutting down their R&D operation does NOT declare it as fact, it is not but a mere opinion of yours.
    Also, pertaining to your last paragraph; I believe it’s totally irrelevant to discuss the political scene now in Egypt. What you and I are discussing is tech news, not politics.

  6. Gaith Saqer  |  April 10th, 2014 at 11:24 PM #

    ok you want facts:
    1- investors flee troubled countries >>>101 economics
    2- Egyptian government failed to convince Intel to keep its R&D arm in Egypt
    3- tech ecosystem in Egypt suffers.

    bottom line: Egyptian government is the main party responsible for this.

  7. Gaith Saqer  |  April 10th, 2014 at 11:28 PM #

    also Aley the political scene in Egypt is tied to the tech ecosystem, in many important and vital ways.

  8. Ahmed Saad  |  April 11th, 2014 at 12:43 AM #

    May I ask you when was this statement released??

  9. Mohammed Safwat  |  April 11th, 2014 at 12:47 AM #

    Weird really, in once sentence you say that Intel itself said that the closure is not related to any political reasons, and in another sentence you just want to convince us and the whole world that the military coup is the reason. And what did the politicians before the military coup did to convince Intel or any other company to stay in Egypt? Egypt’s state is the same (at least for the tech companies and tech people) either before or after the claimed coup.

    Modulating a tech news to be a political one is not good by any means and does not work by the way.

  10. Iman  |  April 11th, 2014 at 12:49 AM #

    101 Economics: money speaks louder than politics.. that’s why people continue to invest in places like Iraq!! or Israel for that matter!!
    if Egypt were cheaper (and provided a better environment) they would have continued to work there. I know many multinational companies in Egypt which we continue to outsource here versus expanding in Europe because it is more economically viable.

    I would have rather seen you tackle the real reasons why over the past 10 years Egypt has failed to live to its promise to be the Hub for tech companies, who instead chose to expand in Israel or India, rather than bring biased political opinions -which granted you’re entitled to defend- but not in article where you claim to be unbiased and where this is not really the topic at hand…

    “What did the coupe bring to Egypt? political unrest, economic poverty, insecurity, mass killing of innocent Muslims, mass arrest of political activists, fabrication of crimes for many, closure of thousands of charity organizations who feed millions of the poor, tyranny, fighting Islam and above all a Zionist pimp to rule Egypt.” Again, you’re free to write whatever you want, but I dont think for a tech startup blog (and for people who read it for that reason) they’d be interested in political viewpoints.

  11. Gaith Saqer  |  April 11th, 2014 at 12:53 AM #

    today

  12. Gaith Saqer  |  April 11th, 2014 at 1:22 AM #

    Mohammed, again it is the Egyptian coupe regime to blame because they failed to convince Intel to stay in Egypt, they are the government. and again did u ask your self why many companies are closing down in Egypt, Who to blame? the government off course the government is responsible for the macro economy in any country, yes it is politics whether you like it or not!!!

    @Iman your analogy is wrong, first no one is investing in Iraq unless it is stealing of oil, where did you bring that assumption from? Iraq is living an armed revolution and the government might fall soon. as for Israel the investment there is driven by politics the strong Jewish lobby in the US brings investment to Israel, most VCs in the US are Jews. another reason is that Israel has built a strong tech ecosystem and strong R&D efforts since the 50s of last century.

    As why Egypt failed to build a tech hub in the region there will be a detailed post about this, but the main reason is political coming from Husni Mubarak regime and his friends at the current coupe regime.

    to mention some that are attributed :
    1- no political stability
    2- no security: the regime is facing a growing military opposition.
    3- corruption
    4- no R&D investment
    5- corrupt judicial system and corrupt masonic businessmen: if your investor screw you and he is connected to the government,you expect to loose your case at court, even worse a crime might be fabricated to you and you might end in prison or even executed!
    6- the worst ever media: the coupe has closed all TV channel that would oppose the coupe, only government media and TV channels that supports the coupe are allowed. these channels have the worst journalistic standards ever, not that they do not show both point of views and show only the point of views that supports the coupe, they also fabricate news stories. how would you expect from the media that fabricate news stories in support of the coupe to put the government accountable in its failed efforts in the economy and tech sector?!

    7- the coupe killed some of the brightest minds in the tech industry in Egypt.

  13. Gaith Saqer  |  April 11th, 2014 at 1:28 AM #

    here is a list of 10 big international companies who closed their offices and factories in Egypt and fired thousands of Egyptian workers after the coupe http://www.almokhtsar.com/node/215482
    do not tell me the government is not to blame or it is not related to the political situation in Egypt! unless you do not read or you support the coupe and make your best to make it look as a good thing for Egypt.

  14. Gaith Saqer  |  April 11th, 2014 at 1:36 AM #

    Also read this Egypt’s ministry of tourism says that tourism has fallen 95% after the coupe, http://www.rassd.com/3-75406_95_%D8%A7%D9%86%D8%AE%D9%81%D8%A7%D8%B6_%D8%A7%D9%84%D8%B3%D9%8A%D8%A7%D8%AD%D8%A9_%D8%A8%D8%B9%D8%AF_%D8%AD%D8%B8%D8%B1_%D8%A7%D9%84%D8%B3%D9%81%D8%B1_%D9%84%D9%85%D8%B5%D8%B1_%D9%85%D9%86%D8%B0_%D8%A7%D9%84%D8%A7%D9%86%D9%82%D9%84%D8%A7%D8%A8 why would someone visit a country were he might get killed? investors do not invest in countries that are not stable ask any non Egyptian investor would you invest in Egypt now?

  15. Iman  |  April 11th, 2014 at 1:42 AM #

    What are we arguing about here?!!!! The Economy has been in its worst shape ever, following the revolution and not only the Coup… and this is not the topic of this article.

    The facts are the following tech-companies have not been expanding / have been closing their offices in egypt for the past 10 years. (this SHOULD be the topic this blog address)
    The economy is suffering after the revolution.
    it continues to suffer after June 30th. (call it coup or whatever I dont care!)

    and since you are extremely biased let me tell you the MB have done NOTHING to appease investor concerns.

    again you’re straying off topic to pass your own political agenda. you’re free to do that, that’s your blog, but that’s not what I came here to read.

  16. Mohamed Abdallah  |  April 11th, 2014 at 9:20 AM #

    Egypt is facing tough time no question but we will pass it soon and tourist/investors will be back .this should be technology related article but as you hate Egypt or support certain terroristic party you are trying to make use of the event. God bless Egypt and it’s army

  17. ali  |  April 11th, 2014 at 11:26 AM #

    Iman Gaith is right and you are arguing about facts and misleading readers, the economic situation in egypt is the worst ever since the coup happend, the talk here is about international companies closing their offices and factories in Egypt due to the political and security situation in Egypt. Some of the 10 big international companies that closed their operations in egypt are non tech and some of them said the reason behind this is the political and security situation, others like Intel and Yahoo lied about this!

    It is true that the economy was not so great during MB time, but it is worse now and instead of bringing new international investors and companies who were here they are leaving now.

    So Gaith is not being off topic he is right at the cause of this problem. You do not like these facts feel free to go some where else
    And Again gaith is right the Egyptian coup regime failed to convince Intel to stay in Egypt and favor it against to other locations around the world.

  18. ali  |  April 11th, 2014 at 11:45 AM #

    Mr Mohammad Abdl Fatah: you are accusations to Gaith have no bases. I ask you a question did not the coup regime failed to convince Intel to stay?if the answer is yes then they are responsible for Intel’s decision to close its R&D center in Egypt.

    And in what bases you say that Gaith hates Egypt? the infidel general Sisi is not Egypt ! Egypt is 95 million people. The coup do not represent Egypt the fact is that they came against the well of Egyptians and by the support of American and Israel.

    Yes God bless Egypt but not its army, because they are the army of killers and murders and army whose generals are loyal to American and Israel . The coup army has killed thousands of people since they committed the coup they are no different than Bashar Al Assad Army they are no different that Husni Mubarak Army in fact they are the same So God curse the army and May God destroy the army and show us on them what they deserve.

    And how do you think the situation will get better in Egypt? the only way to end the demonstrations in Egypt and the hit and run warfare against the army is by opening concentration camps and arrest millions of Muslim Egyptians and killing 100s of thousands of people including women and children. this is what the coup is doing but make no mistake about it with every arrest you make there is 5 new revolutionist. with every killing you make there is 10 new fighters so it wont end until the coup is ended and all the criminal at the army. judges, media and government are put into justice.

    It seems that you are brain washed by the Egyptian media, but that does not make you not responsible.. you are responsible in this life and in front of God in the day of judgment:

    إذ تبرأ الذين اتبعوا من الذين اتبعوا ورأوا العذاب وتقطعت بهم الأسباب ( 166 ) وقال الذين اتبعوا لو أن لنا كرة فنتبرأ منهم كما تبرءوا منا كذلك يريهم الله أعمالهم حسرات عليهم وما هم بخارجين من النار ( 167 ) )

  19. Ahmed  |  April 12th, 2014 at 12:19 AM #

    @Gaith

    Intel acquired SysDSoft early 2011, just after Jan25 revolution. So, according to your economics class, this acquisition should have never happened in the first place.

    This happened after Intel has acquired Infineon’s wireless solutions division and other wireless tech companies to help Intel’s Mobile Communications (IMC) division enter the rapidly growing Mobile Market! For the same reasons they acquired SysDSoft.

    Three years later, IMC is still struggling and Intel’s presence in the mobile market is still unnoticed! and this could somehow explain why Intel’s announced earlier this year that they are cutting 5% of its workforce worldwide!

    Of course the political incidents have their weight in such actions and by no means could anybody overlook them, but point is, things are never that obvious and you will never really know the exact reason(s)! As example, I could say they kicked out all the staff after they got what they wanted (SysDSoft’s great wireless portfolio) and this could easily be the only reason btw. Or I could say they didn’t want certain technologies to be maintained by Egyptians. It could be, right ? But as I said you and I will never know the truth. So, please stop presenting your personal opinions/speculations as the truth of what happened. You’re doing to yourself and your website far more damage than you expect!

  20. Gaith Saqer  |  April 12th, 2014 at 12:20 PM #

    Thank you Ahmed for your analysis I am not going to reply to it but I think it is a good take on the subject, however let me tell you that I posted personal opinion in the comments section which is ok. and most people would understand that.
    best.

Leave a Feedback

  • Become Our Fan On Facebook

    ArabCrunch on Facebook

  • Popular Posts



  • Recent Comments
    • John: This is terrible and truly unjust. The ...
    • John: Talk about true censorship! Why don't yo...
    • Waleed awd: شهادتى على اللى حصل معانا انا وعبد الله ...
    • Gaith Saqer: Thank you Ahmed for your analysis I am n...
    • Ahmed: @Gaith Intel acquired SysDSoft early ...