Anniversary with Egypt opens door for digital cooperation

As 2026 gets underway and we mark the 70th anniversary of the establishment of diplomatic ties between China and Egypt, we find ourselves at a pivotal juncture in history. What began in 1956 as a bold political solidarity between two of the world's oldest civilizations has matured into a comprehensive strategic partnership.

Today, as we celebrate seven decades of resilience and mutual respect, the baton of this cooperation is being passed to a new frontier: artificial intelligence.

The significance of deepening cooperation on AI between China and Middle East and North Africa (MENA) nations cannot be overstated. China, a leader in global AI innovation, is actively sharing its technological ecosystem through the Belt and Road Initiative.

For Egypt, this partnership offers a pragmatic accelerator for its "Digital Egypt" strategy. The alignment is serendipitous: Egypt possesses the human capital and the urgency to modernize, while China offers the infrastructure, investment and technical hardware. Concrete cooperation on digital technology is already underway, including joint development of an AI-driven smart city near Cairo.

Furthermore, Chinese tech giants like Huawei are not just selling products; they are building capacity. By establishing AI labs and training centers with the goal of upskilling more than 100,000 young Egyptians, they are helping to automate government services and nurture a digital economy.

This dynamic extends beyond Egypt. In the Gulf, nations such as the United Arab Emirates are leveraging Chinese technology to diversify their economies, exemplified by the G42 collaboration to develop an open-source Arabic language model. This convergence of regional ambition and Chinese capability is challenging the existing Western tech hegemony, creating a multipolar digital order.

However, the path to this digital future is paved with complex challenges that must be acknowledged to be overcome. While Egypt's startup ecosystem is vibrant — boasting over 100 deep tech startups supported by incubators like the Technology Innovation and Entrepreneurship Center — structural weaknesses persist. A primary concern is the digital infrastructure gap. With internet penetration at approximately 72 percent, Egypt still lacks the requisite connectivity and, crucially, the data center capacity required for high-level AI computation.

Moreover, the specter of geopolitical rivalry looms large. The divergence in data governance is a significant hurdle. Egypt and other MENA nations are still crafting their data protection legal frameworks, and differences between MENA and China in this field may complicate the cross-border data sharing essential for training robust AI models.

The region also faces a crippling "brain drain", with top-tier AI experts often seeking opportunities abroad, potentially turning MENA nations into mere data providers rather than innovation leaders. In the broader region, the challenges are even more acute. While Gulf Cooperation Council states are financially equipped, nations like Iraq, Lebanon and Jordan grapple with electricity shortages and regulatory instability that stifle AI adoption. Furthermore, the intensifying US-China tech rivalry places MENA governments in a delicate balancing act, as deepening ties with Chinese companies subject to Western sanctions could invite secondary sanctions or strain relations with traditional Western allies.

To surmount these obstacles, a pragmatic, multi-stakeholder approach is required. The most immediate priority is establishing clear, standardized data transfer protocols. By utilizing anonymized datasets for collaborative research, both sides can train models without compromising national sovereignty or security.

Additionally, addressing the talent gap requires a shift from simple technology export to educational ecosystem building. Chinese companies and educational institutions can increase investment in joint research centers and scholarship programs. Adopting a model similar to that of China's successful vocational schools — where curriculum is directly paired with industry needs — could close the skills gap and transform the relationship from a client-provider dynamic to one of true partnership.

Both sides can also establish joint AI research institutes co-located in strategic hubs like Dubai, Riyadh, Cairo and Beijing. These institutes should focus on developing foundational large language models specifically tailored for Arabic and Mandarin, ensuring that cultural and linguistic nuances are preserved- a feat often overlooked by Western developers.

Complementing this, we must create "data oasis" zones — shared computing infrastructure that allows Middle East and North Africa nations to leverage China's advanced computing power while strictly adhering to local data residency laws. This would mitigate the "brain drain" by providing local researchers with world-class tools, fostering indigenous innovation.

As we commemorate 70 years of diplomatic friendship between Egypt and China, we must recognize that a next chapter of our shared history will be written in code. By navigating the challenges of infrastructure, governance and geopolitics with a pragmatic and innovative spirit, we can build a partnership that is not only economically transformative, but also historically defining. This is the promise of the Platinum Jubilee — a future in which technology serves as a bridge between civilizations, driving prosperity from the Nile to the Yangtze.

The author is director and founder of the Asia Center for Studies & Translation in Egypt.

The views do not necessarily reflect those of China Daily.