Nearshoring to Egypt 2025: The complete guide for businesses
- Gegidze • გეგიძე | Marketing
- 4 days ago
- 17 min read
Table of Contents
Why Egypt is attracting nearshore teams in 2025
Hiring has become a bottleneck.
Not because you’re doing it wrong. Because the market’s maxed out.
You're short on senior talent, your timelines are stretched, and that feature that was supposed to ship last sprint is still blocked.
So while your team’s pushing through another 5-day week with 8 days of work, other companies, in other words, smart companies, are quietly doing something different.
They’re building teams in Egypt.
But not as a backup plan. As part of their actual product delivery.
Egypt isn’t a shortcut. It’s a system that’s ready
This isn’t a talent “hack.”
It’s the result of a market that’s been preparing for years through BPO, engineering services, and distributed teamwork across Europe and the Gulf.
What’s changed is that nearshoring to Egypt no longer means compromise.
Now, it means:
Real-time collaboration (UTC+2)
Fluent English
Full-stack engineers who’ve already worked on European products
Cost savings that let you extend your team without stretching your budget
Teams that moved early are already delivering
Companies that started nearshoring to Egypt last year aren’t experimenting anymore.
They’re scaling.
They’ve set up delivery pods in Cairo.
They’ve built QA functions in Alexandria.
They’ve brought on DevOps and product designers who ship weekly without timezone delays or communication gaps.
Meanwhile, others are still stuck refreshing job boards and redrafting JD templates.
What nearshoring actually means in the Egyptian context
Nearshoring gets thrown around a lot.
Sometimes it’s just a buzzword for outsourcing with better branding.
But in Egypt, it actually means something useful and different.
This isn’t offshoring 2.0. You’re not handing off work to a distant timezone and hoping it comes back right. You’re working with people who are aligned on time, fluent in your language, and familiar with how your teams operate.
You're building real collaboration.
Just not on your payroll, or in your city.
Egypt isn’t a talent experiment, it’s a trained system
Egypt’s been in the delivery game for a while.
Support centers, BPO, international help desks, it’s all been happening here for decades.
What’s different now is the shift toward product-driven work.
Today:
Egypt produces over 50,000 IT grads every year
There are more than 350,000 tech professionals active in the workforce
And the country just ranked top 3 globally for developer growth (up 34% last year alone)
You’re not hiring junior freelancers. You’re hiring engineers who’ve already worked with European product teams, some remotely, some on-site, some through outsourcing firms that have been operating here for 10+ years.
It’s not “cheap devs.” It’s a cost-effective delivery
Let’s get real, price matters. But so does what you get for it.
A mid-to-senior engineer in Cairo? Around $2,500–$3,500/month.
Fully fluent, remote-ready, and used to agile.
That’s 40–60% less than the same role in Berlin, Paris, or Dubai without cutting corners on quality.
You’re not saving money to do less.
You’re saving money and getting more done.
The model is working because the market is ready
Nearshoring to Egypt isn’t an experiment anymore.
It’s a mature move into a system that’s been built, tested, and refined for global work.
Teams here understand the workflow.
They show up on time. They ask smart questions. They move things forward without needing a full-time babysitter.
That’s the difference between “outsourcing” and nearshoring done right.
What you gain by nearshoring to Egypt
Startups do it to move fast.
Scaleups do it to get control back.
Enterprises do it to stay lean without losing velocity.
The playbook is the same: they stop overhiring in crowded, overpriced markets and start nearshoring to Egypt.
Why? Because it works.
You stop waiting. You start building.
Hiring a solid engineer in Europe can take three months and burn through three budgets.
In Egypt, you can build a dev squad in under 30 days.
Mid-level, senior, backend, frontend, QA, they’re already here. Already trained. Already working.
You’re not rolling the dice. You’re plugging into a system that’s running.
You save money. But that’s not the point.
Yes, the cost difference is real.
A senior engineer in Cairo is around $2,500-$3,500/month.
Compare that to Berlin, Amsterdam, or Dubai, where you’ll pay double, or more.
But the value isn’t just a lower salary. It’s lower churn.
It’s a smoother onboarding.
It’s engineers who aren’t already juggling five offers and thinking about their next move before their first standup.
You get a timezone overlap that works
No more 6 a.m. standups. No more waiting overnight for a reply to one comment in Jira.
Egypt runs on UTC+2. You get:
Full-day sync with Central Europe
Easy overlap with the Gulf
Morning handoff to East Coast U.S. teams
That’s not only convenient, it’s operationally efficient.
You scale without rebuilding the whole machine
Need three devs? Start there.
Need ten by Q3? You can grow into it without rethinking your structure or burning six months on entity setup.
This is where Egypt wins: the flexibility to move without locking yourself in.
You gain time. You gain talent.
And you finally get back to shipping on schedule without burning out your core team.
That’s the real win.
How Egypt compares to other nearshoring destinations
You’ve probably looked at the usual suspects:
Poland. Portugal. Turkey. Tunisia. Maybe even Romania or the Baltics.
All decent options. But here’s what decision-makers are quietly realizing Egypt gives you something most of those markets no longer can:
Room to grow. Without the noise.
Poland is solid but overcrowded
Great developers. Great delivery culture. But everyone’s already there.
Try hiring a senior backend dev in Warsaw right now and you’re up against Big Tech, local unicorns, and half of Western Europe’s startups. Salaries are spiking. Turnover is up. You’re entering a market that’s already been picked clean.
Egypt? Still talent-rich. Still underpriced. Still fast.
Portugal’s nice but not cheap
Portugal sells well the sun, talent, and quality of life.
But you’re not moving your team there. You’re trying to ship the product. And devs in Lisbon now cost what they cost in Berlin, minus the hiring velocity. It’s a beautiful place to visit. Not a cheap place to scale.
Egypt costs 40–60% less and doesn’t slow your roadmap down.
Turkey’s timezone fits, but language can trip you up
Turkey is geographically ideal. And yes, Istanbul has a legit tech scene.
But English fluency outside major hubs varies. That’s fine for backend builds. Tougher for product roles, designers, QA leads, or anything involving daily collaboration.
Egypt’s been serving global clients in English for years, support, dev, design, and data. Communication isn’t a hurdle. It’s built in.
Tunisia is promising, but not quite ready
There’s talent. There’s momentum. But you’ll feel the difference in scale.
Infrastructure isn’t as mature. The hiring pipeline isn’t as deep. And while Tunisia has potential, Egypt is already where Tunisia is trying to be.
If you want stability and scale now, not next year, Egypt wins that comparison every time.
So, where does Egypt stand out?
Let’s call it what it is:
Less competition for talent than Eastern Europe
Lower costs than Southern Europe
Stronger English than most of MENA
And a hiring engine that’s already delivering for companies like Capgemini, PwC, Vodafone, and a long list of global startups
Egypt’s not emerging. It’s here. And the teams that are moving fast?
They’re already hiring there.
The talent you can access in Egypt
Here’s the thing: Egypt isn’t just full of people who could be good hires someday.
It’s full of people who are already doing the work you need just not for you yet.
You’re not starting from scratch here. You’re stepping into a system that’s been quietly training engineers, QAs, product people, and designers for global delivery for years.
Here’s who you can hire
Software engineers
Full-stack and backend specialists: Java, .NET, Python, Node.js
Frontend: React, Angular, Vue
Common backgrounds: SaaS, fintech, ecommerce, logistics
QA engineers
Manual and automation (Selenium, Postman, TestRail)
Trained in agile + CI/CD
Often come from BPO/outsourcing, already process-driven
DevOps and cloud engineers
Skilled in AWS, Azure, Docker, Kubernetes
Familiar with infra-as-code (Terraform, Ansible)
Experience with high-availability systems and hybrid teams
UI/UX designers
Strong with Figma, Sketch, Adobe XD
Used to working in product squads
Clean design thinking + responsive frameworks
Data & analytics roles
SQL, Tableau, Power BI, Python
More grads entering AI/ML and data engineering tracks
Often bilingual, trained in reporting for international teams
Why Egypt’s tech talent stands out
1. High volume of skilled grads
Over 50,000 ICT graduates per year
Strong emphasis on computer science, engineering, and math
Many are trained in English-language programs
2. Remote-ready by default
Thousands already work for EU, UK, or Gulf-based product teams
Strong async habits, reliable internet, and real delivery experience
3. Better retention, less noise
Less offer churn than Poland or the UAE
Easier to build stable teams without rehiring every 6 months
4. Built-in communication skills
English fluency is the norm in tech roles
Clear, professional tone in meetings and async docs
Most developers have worked across time zones and cultures
This is a delivery market, not a gamble
The talent’s not theoretical. It’s active.
You’re not trying to build capability. You’re stepping into a system that’s already working with people who’ve already shipped for global teams.
Nearshoring cost breakdown: Egypt vs Europe
Let’s get to the numbers.
Nearshoring to Egypt is more predictable. You know what you're paying, you know what you're getting, and you avoid the bloated overhead that creeps in when hiring locally in crowded markets.
Here’s how it plays out.
What talent actually costs in Egypt
Here’s what companies are paying in-market for full-time roles not theoretical rates, actual numbers based on real hires.
Role | Egypt (Monthly) |
Mid-level engineer | $1,800–$2,500 |
Senior engineer | $2,500–$3,500 |
QA (manual/automation) | $1,500–$2,200 |
DevOps / Cloud specialist | $2,800–$4,200 |
Frontend or UI/UX lead | $2,000–$3,000 |
Overhead (via EOR or partner):
Expect 18–22% on top, covering local taxes, payroll, benefits, and compliance.
Now compare that to Europe
Here’s how Egypt stacks up to common nearshoring markets:
Role | Egypt | Poland | Portugal | Germany |
Senior Engineer | $2.5K–$3.5K | $5K–$ 6.5 K+ | $4.5K–$ 6 K+ | $7K–$ 9 K+ |
QA Engineer | $1.5K–$2.2K | $3K–$4.2K | $3.5K–$4.5K | $5K–$6K |
DevOps / Cloud | $2.8K–$4.2K | $6K+ | $5K+ | $8K+ |
It’s not even close.
You save 40–60% just on salary.
And that’s before you factor in lower employer tax, faster hiring, and less turnover.
Why these numbers matter beyond your spreadsheet
Let’s get real, cost per head doesn’t mean anything if the team can’t ship.
What Egypt gives you is value per contributor:
You get actual output, not just a filled seat
You onboard faster because the systems are familiar (agile, Git, Slack, sprints, CI/CD)
You keep people longer because they’re not constantly cycling through offers
You spend less time rehiring, retraining, or re-budgeting
What companies are actually doing
Smart teams aren’t just outsourcing tasks. They’re running pods:
2–3 engineers
1 QA
1 designer or PM, depending on the scope
They start with a $10K–$12K/month budget and end up getting the equivalent of a $ 25 K+ local team without the setup, equity, or churn.
They keep the burn rate low.
They keep the product moving.
They stop apologizing for missed timelines
.
And when do you want to scale?
You don’t need a new office.
You don’t need to expand your HR team.
You don’t even need to raise a new round.
You just hire more with the same partner, same structure, same clarity.
Legal, payroll, and IP in Egypt
When you're hiring in a new country, it’s not just the talent anymore.
It’s about making sure your business stays compliant, your contracts are airtight, and your IP is safe.
That’s where the fun starts.
Three ways to hire in Egypt
1. Employer of Record (EOR) in Egypt
Fastest, cleanest option
No need to register a company
Handles payroll, contracts, and compliance
Best if you’re scaling fast or testing the market
2. Local entity in Egypt
Full legal presence in Egypt
More control, but more complexity
Setup time: 2–3 weeks minimum
You’ll manage tax, legal, and HR in-house
3. Contractors (freelancers) in Egypt
Quick to hire, flexible
Must comply with local labor laws
Risk: misclassification if they’re treated like full employees
For a deeper dive into payroll compliance strategies in Egypt, check out our guide on payroll compliance, which outlines the essential considerations for nearshoring in Egypt.
Payroll and taxes in Egypt
Employee income tax:
Progressive, up to 22.5% (handled by EOR if applicable)
Employer contributions:
Around 14–17% (covers social insurance and health benefits)
Payroll cycle:
Monthly
Sunday–Thursday workweek
Local holidays apply
Using an EOR means all of this is covered under one monthly fee, no separate filings, no legal guesswork.
For a more detailed overview of the steps to achieve payroll compliance, we’ve got you covered in our step-by-step payroll guide, showing you how to set up a compliant payroll system in Egypt.
IP Protection in Egypt
1. Copyright & patents
Egypt is part of the Berne Convention
Recognizes international patents and IP protections
Recommend: Register IP in your home country first
2. NDAs and confidentiality
Standard practice
Make sure every contract includes:
Confidentiality
IP assignment to your company
Non-compete/non-solicit (if needed)
3. Ownership defaults
In Egypt, creators own their work unless contracts state otherwise
Your contract must assign IP to your business Don’t skip this
For more on nearshoring advantages and how IP plays into the larger picture, check out our post on the advantages of nearshoring.
Legal risks in Egypt
Labor disputes
Termination processes are more rigid than in the U.S. or UK
Solution: Use an EOR that understands local offboarding rules
Tax missteps
Different bands for different roles
Bonus payouts and equity need to be planned carefully
Again, EOR handles this for you
IP leaks
Only a risk if you skip the paperwork
Solid contracts fix this
Moving quickly, staying compliant
Use an EOR
Get your IP clauses right
Don’t freelance your legal structure
Move fast, but don’t skip the paperwork
Hiring in Egypt is efficient, but only if the structure supports the speed.
Choosing the right setup in Egypt
When you decide to nearshore to Egypt, the first thing you realize is that it’s not a race.
It’s not about scaling as fast as possible. It’s about setting a foundation that supports real growth over time.
You’re building something that lasts, not just filling a role or ticking off a checklist.
So, how do you choose the setup that’s right for your business?
The rush to scale is tempting, but…
We all feel the pressure to move fast.
The product backlog is growing. The dev team’s stretched. The CFO wants numbers. The CEO wants growth.
But speed, without thought, leads to holes you’ll have to fill later. If you rush, you’ll end up firefighting instead of building.
When you nearshore to Egypt, the first decision isn’t about how fast you can hire.
It’s about how much you can grow without losing the rhythm of your team.
First, decide how you want to structure your team
There are three common ways to go about this.
Each has its own advantages, but the right one for you depends on where you are and where you want to go.
1. Hiring through an Employer of Record (EOR)
If you’re looking to start small and grow quickly, this is the way to go.
With an EOR, you don’t need to worry about setting up a local entity or getting bogged down in local compliance. You can focus on what’s actually important: building a team that delivers.
An EOR will handle:
Payroll
Taxes
Compliance
You just pick the talent you need. They do the rest.
If you want speed without complexity, this is your answer.
Why it works:
The EOR setup means you can build a remote team without a long, expensive setup process. You get the flexibility to scale up or down, and you get the benefit of knowing that all your hiring and compliance is already taken care of.
2. Setting up a local entity
Maybe you’re ready to make a long-term commitment to Egypt.
You see this as the beginning of something bigger, an ongoing presence in a growing market. Setting up a local entity could be the right move for you. But it comes with a bit more upfront work.
You’ll need to:
Register your company in Egypt
Handle local taxes and legal compliance
Manage HR and payroll in-house, unless you hire a local partner
Why it works:
This is the best route if you’re planning to set down deep roots and grow a dedicated team long-term. You get full control over the operations and culture from day one. But it does come with some complexity.
3. Working with independent contractors
In some cases, independent contractors could be a good option.
If you don’t want to commit fully to hiring full-time employees, contractors give you a more flexible way to bring on talent. You can start with a smaller team, without the commitment of long-term employment.
However, there are risks to keep in mind:
You’ll need to carefully follow local labor laws to avoid misclassification.
Depending on the role, contractors might require a lot more management or could have a steeper learning curve.
Communication might suffer if they’re not fully integrated with your in-house team.
But if you’re looking for flexibility without the commitment, and you’re working on short-term projects, contractors could be the right fit.
Take the time to assess your needs
Choosing the right setup isn’t just about picking the easiest option, it’s about understanding what will serve your company in the long run.
Ask yourself:
What’s your growth plan? If you’re looking for long-term growth, a local entity or EOR might be the best fit. If you’re just testing the waters, a smaller, more flexible contractor setup might work.
How involved do you want to be in day-to-day operations? An EOR lets you focus on building, while a local entity gives you more control but requires more time investment.
What’s your timeline? Are you looking for speed, or are you okay with taking a bit more time to set things up?
Remote culture and infrastructure in Egypt
You don’t build a strong remote team by hiring fast.
You build it by hiring in the right place.
Not every country gets this way of working.
Egypt does.
People here don’t need to be trained on remote. They live it.
There’s no adjustment curve.
No learning phase.
No awkward period where you’re explaining how to track work or write a proper update.
People here already work with teams in Europe, the Gulf, the U.S., sometimes all three.
They’ve built features for apps you’ve used.
They’ve QA’d releases you’ve launched.
They just weren’t on your payroll yet.
The setup won’t trip you up
The infrastructure isn’t perfect. But it’s good. And more importantly, it works.
You get stable internet.
You get backup power when it counts.
You get teams who already know their way around the tools you use.
And if something breaks, they’ll find a way to keep moving. That’s normal here.
Time zones fit. And they don’t fight you.
Cairo sits in UTC+2.
Which means you stop wasting time on 5 a.m. standups and 10 p.m. handoffs.
You get full overlap with Europe.
You get natural sync with the Gulf.
And you get just enough with the U.S. to keep momentum going.
The team doesn’t have to shift their lives to match yours. They already do.
And this part matters: they care about the work
Not just finishing tasks. Actually doing it right.
You won’t need to push them for updates.
You won’t have to explain what ownership means.
They’ve worked with founders, product leads, and marketing heads. They get it.
If your team is lagging, they’ll notice. If your process is broken, they’ll ask.
It’s not because they’re trying to impress you, but because that’s just how they work.
So what are you really getting?
Teams that know how to work without you watching
Schedules that overlap without tension
Systems that hold up under pressure
And a way of working that doesn’t burn people out
This isn’t about chasing lower costs.
It’s about finally getting back to shipping without dragging your whole company into hiring mode.
That’s what Egypt gives you.
How to get started hiring in Egypt
Hiring globally sounds big.
But starting in Egypt doesn’t need to be heavy.
You don’t need a full playbook. You need movement.
Here’s how teams are actually getting it done without turning it into a six-month project.
Step 1: Decide how involved you want to be
This sets the tone for everything else.
Want to build a team and stay hands-off with logistics? → Use an EOR (Employer of Record).
Want to go lean with just a few contractors? → Use a vetted hiring partner.
Planning to grow a hub or long-term office? → Consider setting up a local entity.
Each option works. It just depends on your timeline and appetite for ownership.
Not sure which fits? Start small. You can always shift later.
Step 2: Choose the model that fits your growth curve
EOR - best if you want to hire full-time talent quickly, without setting up a legal entity.
Partner-led outstaffing - fast, flexible, and often used to build dev pods, QAs, or support squads with low overhead.
Direct contracts - good for freelancers or short-term work, but you’ll need to manage legal and compliance yourself.
Local entity - long-term investment. High setup effort, but full control.
Most companies start with EOR or a partner and scale from there.
It’s faster. Safer. Easier to undo if priorities shift.
Step 3: Know what roles you need now (not six months from now)
Don’t overbuild.
Start with what’s blocked:
Need frontend support?
Need QA?
Need a delivery pod for one product stream?
Get the team around that. Then expand once things start moving.
Hiring in Egypt can happen quickly - 2 to 4 weeks in most cases. So don’t waste cycles trying to forecast too far ahead. Just solve for what’s slowing you down today.
Step 4: Work with someone who knows the ground
You can find great talent on your own. But if you want to move fast and avoid the wrong contracts, platforms, or structures, don’t go in blind.
What you want is:
Someone who knows the talent market
Someone who’s handled payroll, contracts, and compliance
Someone who can get your first hire in place without you opening 12 tabs
That’s usually a hiring partner or an EOR provider. Either works as long as they’re actually in the market, not just selling into it.
That’s where Team Up comes in. We’ve been doing this long enough to know what works and when to stay out of the way.
Step 5: Start small. Build what works. Repeat.
There’s no prize for launching a 20-person team on day one. But there’s real value in hiring 3 people who ship work in their first month.
Get one pod moving.
Then add a second.
Then decide if you want to build around it, or scale it up.
That’s how most successful teams grow in Egypt:
Not by making noise but by building steady momentum.
Is Egypt the Right Nearshoring Bet for Your Team?
Not every team needs to hire in Egypt.
But if you're here, reading this far, there's a good chance you're at the edge of something.
Maybe hiring locally isn’t working anymore. Maybe deadlines keep sliding. Maybe you’ve hit the ceiling of your current market.
Whatever the reason, something’s telling you it’s time to try another way.
Egypt might be that way.
The conditions are solid
The talent is there - trained, available, and already delivering for global companies.
The infrastructure works - not perfect, but stable and growing.
The costs make sense, especially when you look at what you get in return.
The time zone fits - no more late-night meetings or timezone gymnastics.
The culture supports remote, not in theory, but in practice.
Egypt doesn’t ask you to compromise.
It lets you keep moving.
So is it the right move?
Only you can answer that.
But if you’ve been spending more time trying to hire than actually building, it’s probably time.
You don’t need to go all in.
Start with a few roles. Give it a month. See what it feels like to work with a team that doesn’t slow you down.
If it clicks, you’ll know.
And if you need help?
That’s what we do at Team Up.
We help companies build nearshore teams in Egypt without the guesswork, no bloated process, no rigid model.
We’re not here to sell a dream.
Just to make sure you don’t waste time chasing the wrong option.
Start with a short call. Ask your questions. Walk away if it doesn’t feel right.
But if it does?
We’ll help you build a team that works like it’s always been part of you.
Frequently asked questions (FAQs)
Is Egypt a good country for nearshoring software development?
Yes. Egypt has a strong pool of experienced software engineers who already work with European, Gulf, and U.S.-based companies. The time zone (UTC+2) offers real-time overlap with key markets, and salaries are significantly lower compared to Western Europe, making Egypt a cost-effective option for high-quality delivery.
