Alibaba in Egypt: A strategic move that will reshape digital commerce!

Alibaba has taken a new strategic step in the Middle East and North Africa region by entering the Egyptian market strongly.

In November 2025, the Egyptian Unified Procurement Authority (UPA) and the Chinese e-commerce giant announced a historic collaboration with the Egyptian company OrthoHouse to develop a massive regional logistics center within Egypt’s strategic warehouses.

This move means that Alibaba is no longer just an online shopping platform, but has become a key player in restructuring the e-commerce, export and import system in the entire African region.

In the following article, we will learn about the dimensions of the development and its impact on the Egyptian market and the competition with the giant Amazon.

Who is Alibaba? Alibaba is not just an online shopping site, but a giant group that owns several specialized platforms serving different sectors.

Founded in 1999 by Jack Ma, the platform quickly became the world’s largest business-to-business (B2B) e-commerce platform.

The group includes several platforms such as Alibaba.com for international business-to-business trade, Taobao for consumer retail, and Tmall for major brands.

What distinguishes it from other platforms is that it provides an integrated environment that includes electronic payment, microfinance for startups, and advanced cloud services.

In the Egyptian market , Alibaba will primarily focus on the B2B model to support small, medium and large enterprises to export their products and increase their global competitiveness.

Alibaba in Egypt: A new strategic move The tripartite collaboration announced by Alibaba with the Egyptian Authority for Unified Procurement and the Egyptian company OrthoHouse is a real turning point in the Egyptian e-commerce sector.

According to the agreement, the group will develop an advanced regional logistics center within the Authority's strategic warehouses to serve the entire African continent. It will not only store and distribute goods, but will also include the application of the latest artificial intelligence technologies and advanced data management.

The aim of this center is not only to facilitate buying and selling between Egyptian and international companies , but also to support intra-African trade and enhance export opportunities for Egyptian and African products through Alibaba’s global network, which covers more than 200 countries, thus turning Egypt into an important African distribution point for the group.

The difference between the Alibaba and Amazon models Although Alibaba and Amazon are giants in the field of e-commerce, they follow completely different business models.

Amazon focuses on direct sales to consumers through its own store, and owns huge warehouses around the world where it stores products and delivers them to customers quickly. The model is called B2C, meaning business to consumer, and focuses on the individual buyer experience and speed of delivery.

While Alibaba primarily acts as an intermediary between companies, manufacturers, and large buyers, rather than directly with individual consumers, it operates as a business-to-business (B2B) platform, focusing on supporting small and medium-sized enterprises (SMEs) in accessing broader global markets .

In Egypt, this means that Amazon provides services to the average consumer who wants to buy products easily and quickly, while Alibaba provides services to companies that want to export their products or import goods in large quantities at competitive prices.

Amazon Egypt: The strong competitor Amazon entered the Egyptian market strongly, especially after the entry of Souq.com in 2010, and its renaming to Amazon.eg in September 2021.

Since that date, Amazon has worked to expand its services and branches in Egypt and has launched huge investments exceeding one billion Egyptian pounds.

The services it offers in Egypt include retail sales of various products, fast home delivery via 15 distribution stations, and secure payment services.

Amazon has made huge investments in logistics infrastructure and warehouses, which allows it to offer reliable and fast delivery services.

The company has also created more than 3,000 direct and indirect jobs in the Egyptian market, and also provides a platform for local and international sellers to sell their products, but its primary role remains serving the end consumer and ensuring that they receive the product quickly and safely.

Competition and opportunities in the Egyptian market The competition between Alibaba and Amazon in Egypt represents a starting point for real development in the e-commerce sector, as both companies seek to improve services and expand their operations, in order to drive healthy competition that benefits the Egyptian economy in general.

Alibaba focuses on supporting small and medium-sized Egyptian companies to easily access global markets, and this creates new job opportunities and significantly increases Egyptian exports.

On the other hand, Amazon provides the Egyptian consumer with access to diverse and global products at competitive prices and with fast and reliable delivery. This is reflected in the continuous improvement of the services of both companies, representing a major benefit to the Egyptian consumer and merchant alike, and raising the quality of services provided.

Benefits of Alibaba's presence in Egypt for companies and consumers Alibaba's expansion in Egypt holds real benefits for the Egyptian economy on several levels:

Supporting small and medium enterprises: The project gives these companies a real opportunity to export and access global markets without the need to build a special logistics infrastructure, while providing shipping and storage services that reduce costs and increase profits. Creating new job opportunities: Investing in digital and logistical infrastructure will provide diverse jobs for Egyptian youth, especially in the fields of technology, logistics, and operations management. Improving the consumer experience: Consumers will benefit from greater product variety and competitive pricing as a result of healthy competition between platforms, which raises the quality of service and increases the available choices. Strengthening the digital sector: Cooperation in the fields of artificial intelligence and big data will support digital growth in Egypt, and transform the sector into a strong regional player capable of competing and expanding. Challenges facing Alibaba in Egypt and the future Despite the huge opportunities that Alibaba’s expansion in Egypt presents, there are still challenges that require serious attention to ensure maximum benefit is achieved.

Despite the significant development of the Egyptian road network and its progress in the global ranking, strengthening the specialized transport and storage system remains essential to support the efficiency of any new logistics center and accelerate delivery operations.

The market also needs a clear and fair regulatory framework that protects Egyptian consumers and businesses from any legal or financial risks that may arise.

Finally, training the workforce on the latest technologies and skills in logistics and technology becomes an essential element to ensure that Egyptian talent is ready to keep pace with international standards.

Ultimately, the future looks very promising for Egypt as a regional hub for e-commerce and goods distribution in the region.

If the state succeeds in activating this cooperation and turning it into a practical reality, it will become a strategic gateway enabling African companies to access global markets more easily. The transformation not only improves Egypt's economic standing, but also places it in the position of a real and influential player within the global economy in the coming years.