Ahmed Kamel – Egypt Daily News
Mobile phone prices in Egypt are significantly higher than those in Gulf markets without clear economic justification, according to industry representatives, a discrepancy that has fueled growing consumer frustration and triggered parliamentary backlash amid recent regulatory changes affecting phones brought from abroad.
Mohamed Talaat, head of the Communications and Mobile Phones Division at the Federation of Egyptian Chambers of Commerce, said local prices far exceed those in neighboring Gulf countries, citing Samsung’s flagship Galaxy S25 Ultra as a stark example. In Egypt, the device is sold at around EGP 62,000 for the 256GB version and up to EGP 70,000 for the 512GB model, according to local pricing platforms.
By contrast, the same phone is priced in Saudi Arabia at approximately SAR 3,500 for the 256GB version and SAR 4,500 for the 512GB version. Based on the current exchange rate of about EGP 12.62 per Saudi riyal, the Saudi prices translate to roughly EGP 44,170 and EGP 56,790 respectively, creating a price gap of up to EGP 17,800 compared with the Egyptian market.
Talaat described the pricing disparity as indicative of monopolistic practices, calling for an urgent review of mobile phone pricing in Egypt. He urged the formation of a specialized committee to reassess both current devices and those expected to be locally manufactured, stressing the need to benchmark domestic prices against international markets to ensure fairness.
He also noted that customs duties on mobile phone components do not exceed 5 percent, arguing that such limited tariffs do not justify the scale of price inflation. Even with value-added tax of 14 to 15 percent included in Saudi retail prices, phones there remain cheaper than in Egypt, he said.
Similar concerns were raised by Mohamed Hedaya El-Haddad, board member of the Giza Chamber of Commerce and deputy head of its Mobile Phones Division, who said pricing in Egypt lacks transparency and reflects a structural problem in the pricing system. He pointed out that imported phones, even after taxes, are often cheaper than devices assembled locally, raising questions about cost structures and profit margins.
El-Haddad added that while the state has granted substantial incentives and exemptions to companies operating in Egypt, these benefits have not translated into lower prices for consumers. He argued that manufacturers not distributors, are the primary price setters, imposing fixed price lists that distributors are compelled to follow.
He called for regulatory oversight of manufacturers similar to that applied to traders and proposed the creation of a supervisory committee including representatives from the chambers of commerce, the Consumer Protection Agency, the Competition Authority, and the Ministry of Finance or Customs Authority. Such a body, he said, should monitor phone prices and compare them against global benchmarks.
The pricing debate has intensified following the government’s decision to end a temporary customs exemption for mobile phones brought into the country by travelers. The move has prompted many Egyptians working abroad to rely on overseas purchases due to lower prices, a trend industry figures say would diminish if domestic pricing were addressed.
The decision has also triggered strong reactions in parliament. Several lawmakers submitted urgent inquiries and briefing requests, with calls to summon government officials for questioning before the end of January.
Abdel Moneim Imam, head of the Justice Party and deputy chairman of the parliamentary Planning and Budget Committee, criticized the timing and rationale of the decision, arguing that it unfairly equates Egyptian expatriates with tourists. He questioned whether restricting the import of personal phones aligns with efforts to localize manufacturing, particularly at a time when remittances from Egyptians abroad have risen by more than 42 percent to an estimated $37.5 billion in 2025.
Other lawmakers echoed these concerns. Rawya Mokhtar, deputy head of the Manpower Committee, criticized the immediate implementation of the decision without a transition period or prior notice, describing mobile phones as an essential commodity. She called for clarification of the legal basis for the measure and asked how the government plans to ensure prices actually decline in the local market.
In a related move, Maha Abdel Nasser, deputy head of the Communications Committee, announced that the committee would summon government representatives at the start of the next parliamentary session to discuss the decision’s alignment with social justice considerations. She stressed that policies affecting everyday technology use must undergo serious parliamentary scrutiny.
Economist and law professor Reda Abdel Salam said supporting local industry is a strategic objective that can reduce imports, create jobs, and add value to the economy. However, he cautioned that such goals should not come at the expense of citizens, particularly Egyptians working abroad, whose remittances remain vital to economic stability.
The Customs Authority and the National Telecommunications Regulatory Authority confirmed that the exceptional exemption for mobile phones accompanying travelers ended this week, while a 90-day exemption remains in place for Egyptians residing abroad and tourists. The measure is part of a broader system to regulate mobile devices entering the country, pending wider availability of locally manufactured phones exempt from customs duties.
The decision took effect at noon on Wednesday, prompting renewed calls from expatriates for exemptions or revisions. As public debate continues, the controversy has placed mobile phone pricing, consumer protection, and industrial policy at the center of a wider discussion about fairness, transparency, and economic reform in Egypt.
