US embassy cable - 05CAIRO2662

UNCLAS CAIRO 002662 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BTIO, ECON, ETRD, EINT, EINV, PREL, TINT, KWWW, EG 
SUBJECT: INTEL CEO MAKES A SPLASH IN CAIRO 
 
 
1.  In his first visit to Egypt, Intel Corporation CEO Craig 
Barrett last week delivered a slick, multimedia presentation 
resembling a primetime television show to assembled 
government and business leaders during an AmCham-sponsored 
luncheon on "Building the Digital Society in Egypt."  The 
spectacular event received a great deal of local press play, 
as Barrett cited the GOE's strides in modernizing the 
Information and Communication Technology (ICT) sector over 
the last five years and initiatives to attract major ICT 
companies to invest in Egypt.  It was a largely positive 
event, although he also criticized corporate tax regulations 
and Egypt's lack of spending on research and development 
(noting that his company alone spends five times as much as 
the GOE on ICT research). 
 
2.  Barrett was in town to demonstrate Intel's commitment to 
do business in Egypt, marking a dramatic change for the 
multinational; a decade ago, Intel publicly rejected the idea 
of establishing a high tech center in Ismailia and instead 
directed its investment to Israel.  Now, Intel plans to open 
in Egypt a center to develop platforms for use across the 
Middle East and Africa and a software laboratory, to 
cooperate with the GOE on various information 
technology-related initiatives, and to bring the 
International Science and Engineering Fair to Egypt during 
the coming academic year.  Comment:  Intel's expanded 
interest in Egypt reflects growing confidence among 
international ICT players that the Nazif government is 
serious about turning the country into an investor-friendly 
arena.  End comment. 
 
 
Visit Embassy Cairo's Classified Website: 
http://www.state.sgov.gov/p/nea/cairo 
 
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State Department's Classified SIPRNET website. 
 
GRAY