Sep. 13, 1999

Address by President Muhammad Hosni Mubarak to The National Conference on The Promotion of Techonology and Information

    Brothers and Sisters,

      Today I come to you with high hopes underpinned by an integrated vision and several object justifications for us to introduce, in addition to Egypt maga projects that are presently underway ,a new national project for a comprehensive technological revival.

      It is our goal to make use of modern scientific applications invarious sectors of production and services and implant technology deep into the soil of our country, thus turning Egypt into a producer of sophisticated technological components and a base for information industry. This new industry has totally revolutionized quality and quantity standards. Moreover, in view of its high value-added, this industry has triggered a huge leap in the income levels of many countries and has turned into the focus of progress in our today’s world.

       The items we are going to see today in your exhibition for the firstlings of your national products in the realm of this promising industry reassure us that the massive national project we are planning to implement over the upcoming period rests on good beginnings. This makes it an essentialy called-for decision to invest in these areas. To invest in the technoloical industry is to invest without the least hesitation, in Egypt’s future, particularly in view of the fact that the promising beginnings we have already seen reaffirm that Egypt has the capability of catching up with this significant development that has enabled many developing nations to redouble their national income in a record-breaking time not exceeding 20 years and to make huge leaps in their export capabilities.

      In spite of the huge achievements we can see everyday and on every spot, east and west of the country, north and south of the valley as well as in industrial zones and tourist and petroleum sites, yet we nurture a legitimate ambition to bring about in a record-breaking time a noticeable improvement in the income levels of our citizens so that Egypt may turn into a medium-level nation with an increasing income. Egypt is no less capable than several similar countries that have managed to attain this goal.

      The proper way to this end is to bring about a new qualitative leap in modalities of national action, that can redouble its fruits, rendering production and service centres more dependent on the achievements and applications of modern science.

       The technological development of national work capabilities means to upgrade the productivity of the Egyptian industry base optimally use natural resources, reduce production expenses and minimize waste and raise quality of Egyptian products to such levels that render them competitive in the world market. Moreover, this means to create new job opportunities of high income and high value-added for Egypt’s youth. In brief, the technological development of national work systems will realize a new take off for the Egyptian economy so as to make it more capable of coping with the changes of this era and standing out in the face of international competition.

      Most important is that the technological development means to utilize the Egyptian youth thinktank in creativity and innovation in addition to shaping and harnessing Egypt’s future for a better living to all the Egyptians. In my latest address, on launching work in the East Port-Said industrial zone project, I talked about the far reaching effects of globalization on the international trade and the national economies, as it has become a deeply-rooted orientation that imposes itself on the world. Probably, one of the most prominent challenges that face Egyptian development is that it takes place in an era where achievements of science and its technological applications are accelerating barriers between national and international markets breaking down and the value of creativity, modernization and development in international competition market aggrandising. Ours is a world which is based on the speedy accurate information received by open well-trained, analytical and creative minds.

      Moreover, they have rendered infornation technology a new human activity that has surpassed in its progress and effect all other human activities such as agriculture, industry,trade and finance. What had started since the beginning of the mid Twentieth Century, as a simple computer has turned by the end of the century into highly advanced electronic systems that control the tracks of satellites and spaceships and direct with high precision, the movement of goods and services from starting points up to destination. Moreover, it constitutes an indispensible part of equipment, machines and facilities in each factory and farm so as to guarantee the speedy operation, the accurate performance and abundant production.

      Thus, computer has become an essential factor in controlling, directing, maximizing results and rectifying the track of all productive activities whenever needed. At present, the accurate information received at the right time and the right form is the basis of the sound decision in our daily life as in dividuals, companies and countries operating within a common framework, based on the rapid decision-making and precise information. Thus, the absence, vagueness or delay of the right information is now very expensive, costing us improper decisions, lacking precise information or sound base.

      This age imposes on us the necessity of investing in this new human activity related to information technology, that is undertaken by trained minds, capable of utilizing, analyzing information and turning them into sound decisions that serve development issues. From this starting point, I offer you a national project for technological revival, based on the express and sustained implementation of an ambitious national programme that ensures that the efforts of the community with all its sectors are to be mobilized for the utilization, entrenchment and production of technology and its applications in all production sectors and walks of Egyptian life.

      We should be encouraged by the good progress already made on this road. This represents by all standards a cultural leap that has enabled Egypt to build an information infrastructure well-suited to cope with the age of globalization and information. We have rebuilt the Egyptian telecommunication network that comprises now more than six million telephone lines. The network is being upgraded and adopted to optical fiber technology that allows ultra-speedy information transmission suitable to deal with the Internet.

      We have launched the first satellite, thus rendering. Egypt a pioneer in the transmission of remote education and health services. God willing, we will launch the second satellite which, when completed, will allow Egypt’s satellites to cover half the glob. We have also established about 1400 infromation centers that provide a relatively large part of community activities, and assist government and private sector leaders in refreshing their knowledge and rationalizing their decision-making process.

      For the first time, we have now a huge data base that provides detailed accounts of Egypt’s wealth of human resources, expertise and physical assets. It also provides details of citizens’ national identification code numbers, foreign debts, Egyptian legislation and researches and studies issued by several Egyptian and international bodies. In the field of preparing cadres for the age of information ,we have made a number of overall achievements of which the most prominent is the introduction of computers into twenty thousand Egyptian schools.

      Moreover, Twenty-First century child clubs have been set up for training tens of thousands of children in using computers. Seven university colleges specialized in computers and information science have been built, in addition to an information technology institute. Graduates of these institutions have gained worldwide recongnition as to their high level in this specialization including software development and design.

     In the field of information technology industry, Egypt has made major strides. Now we have more than four hundred Egyptian companies specialized in information technology and software. These companies operate in a market with a volume of more than US Dollar 681 million, achieving a growth rate of 32% per year; the second highest in the world. In addition, a number of Egyptian companies participate assembling and manufacturing computer’s components, covering up to 60% of the Egyptian market.

      Greetings to all intellectual and operating staff that have contributed to the making of this achievement. It deserves to be an object of our pride as it has laid down such information infrastructure that enables us to move forwared. Greetings to Egyptian scientists, specialists and young men who are exerting laudable effort so as to render Egypt an eye-catching spot on the developing world map.

      In the future plans, we must continue to complete data bases in every location office, town and village. Moreover, we should bring about quantitative and qualitative leap in the components of these bases including computers and tele-communication networks, so as to cover all economic and social activities. The responsibility should be shouldered by the state bodies and community institutions, including industry associations, chambers of commerce, professional syndicates, businessmen's organisations, universities, scientific research institutions, press houses and information centres.

     As you may recall on the past Labour Day, I requested that the role of the standing committee on transportation and technology development to be activated by establishing an executive board with a full-time executive official, I have defined two main objectives for this committee: First: Prepare a national plan to transfer and entrench technology and seek to create a national technological industry capable of participation and competition. Second: Build an Egyptian information community that can catch up and absorb this mammoth flow of information and progressive knowledge. It should be also able to benefit from this flow so that accurate information will be the right base for decision-making by each and every decision-maker in the government or a private sector owner. In recognition of its significant role, I have decided that the standing committee on technological development report directly to the President

      Thus, the committee can have the necessary momentun to perform its duties in drawing up plans or developing the information and technology community in Egypt and lay the right base for technological base focus supported within an articulate legal framework to mobilize community resources in order to achieve this goal.

     The starting point that represents the basic core of this gigantic project is to prepare the Egyptian community from school and university students to graduates and specialist for imbarking onto the sophisticated technology era and also to encourage institutes, schools and community organizations to build additional training and rehabilitation centres all over Egypt. To be more specific, our future orientation will be based on the following approaches:- First: Develop national demand for information and its uses. We are certainly aware that the demand for any commodity or service is the only justification to produce it. In the absence of demand by individuals, it would be futile to allocate any sources or investments to such industry.

      We are also aware that demand in the countries that have overtaken us was generated by government initiative along with a specific demand by their bodies and institutions for specific types and volumes of information to be presented within specific deadlines. We will expand data bases already built, introducing additional ones so as to update, modernize and supplement those in existence thereby promoting local demand.

Second: We will head for world markets in search of our share of world demand that reaches hundred billions of dollars every year. We will assist in studies made on foreign markets, their requirements, dealing rules and the corporations on which such markets depend for meeting their requirements. It is now incumbent upon us to plan for an Egyptian- origin, global market - oriented industry that should leap to an advanced position among our industrial exports.

Third: As the success of such industry with all its components depends on available cadres trained in computer widely accessible in child clubs, culture centres, schools and universities. We also need to expand training programmes in government and private institutions, offer more support to centres for talented and creative software makers, send missions to reputed corporations in the fields of educating and preparing technical staff and experts in order to keep abreast of ongoing developments in scientific and training programming, materials and techniques.

Fourth: In order to accelerate the development of this industry we need to enter into alliances between information makers in Egypt and their counterparts in more advanced countries especially those who have made great strides in upgrading their industry and that house the biggest number of corporations operating in various fields of this industry. Such alliances have now become a pre-requisite for transferring knowledge, reducing production costs and increasing marketing power.

Fifth: In order to develop this industry, we need also to ensure a constant flow of public and private investments to upgrade infrastructure facilities especially the telecommunication network, reduce uses’ costs related to data transmission, build and equip training centres, establish areas suitable for setting up, within the country, software plants and laboratories. It may be necessary at that point to find a suitable formula to guarantee integration of roles between the government and private sectors including incentives required for investments.

Sixth: It will be necessary to review existing legislations, so as to allow producers of this industry under the law full protection of their inventions. Thus, we can ensure that they will be able to obtain their needs of supplies and facilities at competitive costs and guarantee the flow of their requirements and products to and from the outside world without restrictions or hurdles.

     We should properly invest in fostering the minds of our citizens, promote their abilities so as to provide an abundance of top-performers and highly skilled people needed for advanced technology industry; including software, hardware and information industry based on advanced electronic telecommunication networks.

      A great number of countries seek to develop technology and information industry because it is a promising, rewarding and high-yield industry both in terms of its products, most of which are export oriented, and its high value-added. This is the result of an industry based on knowledge, usually originating in small-size ventures, employing highly experienced and qualified work force and yielding huge income in spite of their modest capital. While Egypt has at present about 400 such institutions owned by promising young people that have managed to break into these fields and achieved significant successes, hence, it is our duty to encourage the private sector to engage in creating computer software and hardware industry.
We should not expect that such corporations would be born giants. On the contrary, with a reasonable start up, such corporations like most institutions in most parts of the world must rise through the efforts of high-flying young men fully conversant with their age, and well-qualified to gain access to such fields.

       The shortest way to accelerate development of information and technology is to seek to attract foreign investment. Moreover, more efforts are required to convince the entire world that Egypt possesses several advantages in information and technology industry comparable to the best of developing countries because it possesses an enabling and favourable environment, inexpensive man power, an abundance of thinktanks and reasonablle cost manpower, together with a well-built infrastructure that connects both the world with Egypt and Egypt with the international information and technological network.

Brothers and Sisters,

       It is our duty over the upcoming period to bring together executive experts and businessmen interested in information and high technology industry as well as representatives of governmental bodies and banks, encouraging them to help establish national corporations that can engage in this business. Egyptian banks are encouraged to finance them. Moreover, interested foreign investments are to be encouraged to establish joint ventures with national counterparts or separate private ventures.

       Facilities and tax and customs incentives should be provided to invigorate such industry through soft loans, customs exemption or allocating lands in desert areas provided with specialized infrastructure facilities. Over the upcoming period, the government will also seek to draw up a well-defined order of priorities in this field where absolute priority will be given to high value-added industries and corporations. Partnership agreements with the US, European and Asian countries will be enhanced so as to cover, transfer, customization and export of technology. Moreover, all facilities should be provided for Egypt to be able to break into new vital industries related to information technology such as software package industry, bio-technology, genatic engineering and other industries where Egypt enjoys high relative competitive advantage.

Brothers and Sisters,

     The success of such national mega project largely depends on close cooperation between the government, the private sector and the community organizations within the framework of a clear-cut national programme that defines the role and obligations of each party. It is the government’s plan in this respect to support this new industry by increasing its demands for its product and enlarging the volume of government uses of computer software and hardware.

      Furthermore, it is the duty of the government to help build the infrastructure necessary for this vital industry at its centres. Since the growth of information industry is closely related to the availability of a telecommunication network that efficiently serve all those in need of information service, therefore the upgrading of telephone network capacity should forestall ongoing developments in information industry. In this regard, prices of such services should be proportionate to their counterparts all over the world in order for us not to lose, on account of telecommunication cost, our advantage of Egyptian creative and reasonable cost manpower.

      It is also our responsibility over the coming period to continue to modernize developing educational programmes in such a way as to enable Egypt to train new generations to handle overwhelming evolution of information technology. It is also the responsibility of the government to review existing legislations so as to provide intellectual protection to the innovators as well as such incentives that turn these nascent industries into strong magnets for national and foreign investments.

      We do heavily reckon upon community in organization for a proper environment for creating a technological revival that encompasses the whole of Egypt. This can be made possible by allowing more wide-spread use of computers, making available technological knowledge that enables every trainee to upgrade his skills, establishing training centres in all areas and providing facilities for those interested in acquiring computers. we also reckon upon the important and fundamental role of the private sector. This role can include setting up advanced-technology companies operating in the fields of computers hardware and software industry supplying them with capabilities that enable them to market their products abroad. They can also establish together with other corporations, a company to promote Egyptian software abroad. The duties of such a company may inter alia provide for the transfer of modern information and advanced technologies to national companies to bridge the technological gap with the developed world.

       Such technological revival can never succeed and flourrish unless technology has been entrenched deep into the Egyptian soil. The end result should be that Egypt will have a technology of its own well-suited to the conditions of a community that still depend on labour-intensive industries, to provide job opportunities for its new generations. I do not think that in this field we lack experts, specialists and scientific researchers who are able to develop national products of advanced technologies so as to be competitive in world market. What we really lack is the ability to better regulate our efforts more efficiently, utilize our available resources and coordinate our joint efforts within an integrated framework that ensures creative cooperation between scientific research centres, universities and production centres, as well as sponsorship by producers of scientific researches that serve national production purposes.

Brothers and Sisters,

      We are embarking onto the Third Millennium, confident in our capability to bring about a technological revival that crowns the efforts of the Egyptian development and redoubles its fruitful results so that welfare will prevail in all sectors of the Egyptian society. The international community has imposed on us a new order based on knowledge and science that comes as a result of rapid communication, and grows on innovation and creativity. Globalization has imposed on our age a new world based on giant transitional corporations with their huge power of making use of knowledge and sciences; these corporations link the whole world by means of developed advanced telecommunication nets and seek to expand their presence and domination of markets.

      Thus, it is incumbent upon us to build a community of large, highly participative and competitive corporations that place science in the service of production; encourage innovation, development and creativity, master the language of the time in conversing with the world thus ensuring access by Egypt to the world of high technology and information industry. This is the future we aspire for and target, the future of efficiency, precedence and distinction, where Egypt can catch up with human progress. Seven thousand years ago, Egyptians invented language, letters and handwriting as well as agriculture, industry and arts besides advanced technological methods that have allowed them to transfer their thought and creativity across borders resulting in adding new contributions to human civilization across the Mediterranean in the North up to Greece, to the depth of Africa in the South up to the Land of Ponts and to Mesopotania in the East up to Persia.

      As the world celebrates the advent of the Third Millennium, we should recall that as far as Egypt is concerned, this Millennium is based on time-honoured legacy of an ever-continuing civilization. Hence, it is high time to revive this civilization so as to restore for Egypt its ancient glory. While embarking onto the Third Millennium, our sole objective is the Egyptian citizens, Egypt’s assets and genuine treasure. We are not aligned to a specific category, sect or gathering. We are rather aligned to each creative national effort that renders a beam of light to the nation’s future and every sweat drop by an honest performer which waters a drop of sand on this soil and every well-guided opinion that unveils to us pitfalls and risks on our way.

     Our souls are free of bias, our hearts devoid of hate or grudge to anyone. We only bear within us an unrelenting determination to maintain the security of our homeland and support its stability without any fear from anyone nor any danger because we dedicated our souls to a nation, we are honoured to belong to and will be happy to sacrifice for its sake. We pray Allah Almighty to make justice as a link between ourselves and our folk, askig Him to support us in bearing a responsibility too difficult for mountains to bear. May Allah keep us away from pitfalls of injustice, stubbornness and hate, so that our hearts will always remain full of tolerance, faith and love. He is the Best Custodian and Supporter.

May Allah's peace and mercy be upon you.