Egypt’s non-oil private sector recorded its most significant growth in five years in November 2025, according to the latest S&P Global Purchasing Managers’ Index (PMI) data. The headline PMI rose sharply to 51.1 in November from 49.2 in October, marking the first improvement in non-oil operating conditions since February and hitting the highest level since October 2020. Historically, this reading corresponds with annual gross domestic product growth exceeding 5%, signalling a potential acceleration in the nation’s economic expansion beyond its traditional oil-dependent framework.
The surge comes after a prolonged period of subdued activity, demonstrating resilience in sectors less directly tied to Egypt’s energy exports. The increase in output and new orders underscores the effectiveness of Egypt’s long-standing diversification strategy, which seeks to reduce reliance on oil revenues by nurturing manufacturing, tourism, construction, and trade.
READ ALSO: Egypt’s Economic Recovery Accelerates And What This Growth Really Means
The expansion in non-oil sectors is being driven primarily by manufacturing, construction, and services, all of which reported higher levels of output and new business. Manufacturing, in particular, has benefited from both rising domestic demand and the stabilisation of import costs. The stronger Egyptian pound has reduced the burden of imported raw materials, while inflationary pressures on input costs fell to an eight-month low, easing margins for private sector firms.
Tourism and trade have also contributed to this growth momentum. Following global travel recovery trends post-pandemic, Egypt has seen an influx of international tourists and increased commercial activity, particularly in retail and wholesale trade hubs. These sectors, while still facing challenges in workforce expansion, reflect a broader structural shift toward a diversified economy.
Despite the clear growth in output, employment levels in Egypt’s non-oil private sector remained flat in November. Firms, while reporting increased workloads and rising backlogs, exhibited caution in workforce expansion, prioritising operational efficiency and cost management over immediate hiring. This conservative approach suggests that companies are waiting for sustained confidence in demand before committing to job creation, indicating that labour market improvements may lag behind production and sales growth.
The November PMI survey highlighted a softening in input price inflation, with businesses noting that a stronger Egyptian pound against the US dollar had helped moderate import costs. The slowest rise in average prices in seven months was recorded, suggesting that the benefits of cost moderation were only partially passed on to consumers. Wage growth continued, but overall cost pressures on businesses were at an eight-month low, improving profit margins and contributing to renewed business optimism.
Egypt’s non-oil sector growth is significant not only for domestic policy but also for the wider Middle East and North Africa (MENA) region. As one of the largest economies in Africa, Egypt’s diversification and strengthening non-oil sectors could recalibrate regional trade dynamics, creating new opportunities for investment and partnerships. A more robust manufacturing base and vibrant service sectors may enhance Egypt’s position as a regional economic hub, potentially attracting foreign direct investment and expanding trade corridors across North Africa and beyond.
David Owen, Senior Economist at S&P Global Market Intelligence, noted: “The Egyptian non-oil private sector registered its best upturn in business conditions in over five years in November, which hints at a strong end to 2025. Historically, the latest PMI reading signals that year-on-year GDP growth could rise above 5% in the fourth quarter.”
While November’s PMI reading paints a promising picture, challenges remain. Employment expansion has yet to respond to increased demand, indicating potential friction in translating output growth into broader economic inclusion. Additionally, sustained investment in infrastructure, technological upgrades, and workforce skills development will be critical to ensure long-term competitiveness in a global market.
Nonetheless, the data provides a compelling narrative of resilience and transformation. Egypt’s non-oil private sector growth signals the emergence of a more diversified, agile economy capable of weathering external shocks while contributing to regional economic stability. As the country closes 2025, the trajectory suggests a positive outlook for non-oil sectors, underpinned by strategic policy interventions, fiscal stability, and continued market reforms.
