Updated: BREAKING: Intel Closes its R&D Office in Egypt

10 Apr, 2014

Update: Intel said that after closing its R&D arm in Egypt but it kept its other business unites operational in the country in case that was not clear.

Another sad and bad news for troubled Egypt, Intel is closing its R&D offices in Egypt 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 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 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 closed 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 it also 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.”

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