Egypt Private Sector Activity Slides for 26th Month in Row

 Egyptian vegetable and fruit seller waits for customers at a popular market in Cairo, Egypt, January 18, 2023. REUTERS/Hadeer Mahmoud
Egyptian vegetable and fruit seller waits for customers at a popular market in Cairo, Egypt, January 18, 2023. REUTERS/Hadeer Mahmoud
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Egypt Private Sector Activity Slides for 26th Month in Row

 Egyptian vegetable and fruit seller waits for customers at a popular market in Cairo, Egypt, January 18, 2023. REUTERS/Hadeer Mahmoud
Egyptian vegetable and fruit seller waits for customers at a popular market in Cairo, Egypt, January 18, 2023. REUTERS/Hadeer Mahmoud

A contraction in Egyptian non-oil private sector activity entered its 26th straight month as high inflation and a continued shortage of foreign currency weighed on business, a survey showed on Sunday.

The S&P Global Egypt Purchasing Managers' Index (PMI) slipped to 45.5 in January from 47.2 in December, well below the 50.0 threshold that marks growth in activity.

"The Egyptian non-oil economy suffered a sharp contraction in operating conditions in January, as a depreciation of the pound drove a rapid acceleration in price pressures," S&P Global said, Reuters reported.

The PMI's sub-index for overall input prices climbed to 72.3 from December's 65.0 and that for purchase prices rose to 72.7, its highest reading since the months after Egypt devalued its currency by half after an earlier IMF agreement in 2016. The purchase price sub-index was at 64.3 in December.

"Roughly half of all surveyed firms saw their purchasing costs increase since the end of last year, leading to a robust and quicker rise in overall expenses," S&P Global said.

Headline inflation in Egypt surged to a five-year high of 21.3% in December, the state statistics organization reported last month.

The increased inflationary pressures and the impact on demand led to a sharp contraction in output across the non-oil sector in January, S&P Global said.

"Some firms added that import restrictions led to further supply shortfalls, which hindered activity and contributed to a sustained rise in backlogs of work."



Formula E: Partnership with Saudi Arabia Is a Global Model for Advancing Sustainable Transport

Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)
Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)
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Formula E: Partnership with Saudi Arabia Is a Global Model for Advancing Sustainable Transport

Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)
Formula E races serve as a means for testing new technologies in electric cars. (Asharq Al-Awsat)

Formula E’s partnership with Saudi Arabia and the Kingdom’s Public Investment Fund (PIF) is emerging as a global benchmark for redefining the future of sustainable transport and clean energy, aligned with the ambitions of Saudi Vision 2030.

Julia Pallé, Vice President of Sustainability at Formula E, said that the collaboration with the Kingdom stems from a shared vision, highlighting that both Saudi Arabia and the PIF aim to be agents of change.

One of the earliest joint initiatives was the launch of a fully female racing test in Saudi Arabia, soon after the country lifted its driving ban on women. This move reflected a mutual commitment to challenge existing norms and explore new opportunities.

Tracing the origins of Formula E, Pallé explained that the championship was launched eleven years ago with two main objectives: advancing electric vehicle (EV) technology and reshaping public perception. At the time, electric cars had limited range and options, with the Nissan Leaf being one of the few available models.

Thanks to the advancements spurred by Formula E, battery capacity has increased by over 200 percent. In the early seasons, drivers needed two cars to complete a race due to battery limitations, something that is no longer the case today.

Formula E has become a vital testing ground for automotive manufacturers to develop broader EV technologies, she said. Simultaneously, by hosting races in urban centers, the championship has helped integrate electric mobility into modern life, aligning it with contemporary and sustainable lifestyles.

Pallé noted that the partnership with PIF has extended Formula E’s presence in the Kingdom and opened the door to broader ambitions. Through initiatives like “Driving Force,” aimed at students, the collaboration is nurturing a new generation of changemakers by equipping them with knowledge in green skills, sustainability, and social impact.

She explained that in just one season, the initiative reached over 50,000 students, with plans to double that number in the upcoming season.

Another initiative, “Change. Accelerated. Live,” explores the broader narrative of how the PIF is contributing to a more sustainable and equitable future through sports, she told Asharq Al-Awsat.

Formula E does not view its growth as a contradiction to sustainability, but rather as an opportunity to accelerate innovation. The organization follows a technological roadmap that anticipates consumer challenges over the next five to ten years and works proactively to address them.

A recent example is a project launched in Jeddah, showcasing cutting-edge ultra-fast charging technology. The initiative aims to build confidence in electric mobility by highlighting real, existing solutions to infrastructure challenges.

Pallé pointed to tangible examples of race-to-road technology transfers. Nissan, for instance, enhanced battery performance by 200 percent based on lessons learned from the racetrack. Jaguar also implemented improvements from its I-PACE eTROPHY racing series into its consumer vehicles, resulting in a 10 percent increase in battery life for drivers worldwide.

On whether Formula E aims to compete with or replace Formula 1, Pallé made clear that the two are not rivals. She noted that Formula E offers a completely different experience, targeting a younger and more family-oriented audience. It was designed as a sport of the future, more accessible, more sustainable, and deeply aligned with environmental principles.