Eased tariffs, geopolitical risks fuel Egypt's gold export boom: Experts - Markets & Companies
According to a previous statement by Ihab Wasef, head of the Gold and Jewellery Division at the Metallurgical Industries Chamber of the Federation of Industries, gold exports hit $3.2 billion during the first quarter (1Q) of 2025.
Global and regional geopolitical tensions and Trump's new tariffs have driven gold prices to significant surges, which caused a local increase of gold prices by about 24 percent since the beginning of the year until mid-May 2025.
Egypt's ranking as a global jewellery exporter rose from 94th in 2022 to 54th by the end of 2023. Within two years, Egypt aspires to be ranked among the top ten jewellery exporters globally.
Ahram Online spoke to experts about Egypt's prospects of achieving that target, given the ongoing challenges and the reasons behind the country's advancement in the gold exports rank.
Reasons for the increase
Rafik Abassi, the former head of the Gold and Jewellery Division at the Metallurgical Industries Chamber of the Federation of Industries, explained to Ahram Online that the current surge in gold jewellery exports results from nearly two years of exporting.
Abassi added that exports increased after overcoming previous export obstacles, including valuation fees and the cancellation of the stamp duty.
"Over the past few years, I have attempted to facilitate export activities by eliminating the valuation fee of one percent on the value of gold, which puts us at a disadvantage in foreign markets. I have also worked on abolishing the Egyptian stamp that importers do not favour," he explained.
In a previous statement, Wassef attributed the exceptional performance to the significant rise in global demand for gold amid escalating geopolitical tensions and international trade wars.
He added that these circumstances enhanced foreign markets' inclination towards gold as a haven, opening new opportunities for Egyptian producers to enter these markets.
Furthermore, Wassef noted that the Central Bank of Egypt (CBE) 's decision to extend the export proceeds payment period to 75 days helped increase export rates during the past period.
He highlighted that the UAE, Saudi Arabia, and Turkey are the top importers of Egyptian gold. Egyptian gold has also entered new markets in Europe and the United States.
Urgent demands of gold exporters
Abassi told Ahram Online that gold exports require additional measures, including allowing banks to lend to gold jewellery manufacturers at a two percent interest rate, like most countries worldwide.
"Recently, I proposed that the Union of Egyptian Banks approve borrowing gold from banks outside Egypt at an interest rate of two percent to provide them with sufficient guarantees. The union would then lend it to us at an interest rate of 5 percent to facilitate the production process. This will undoubtedly have a significant impact on export activity."
Abassi pointed out that in facilitating the export process for its producers, Turkey became the highest-ranking jewellery exporter in Europe, surpassing even Italy.
On the other hand, Wassef told Ahram Online that the Gold and Jewellery Division will work on providing external marketing for Egyptian products to achieve the export target by 2027.
Strong industry
Abbasi explained that Egypt has "about 20 major producers capable of producing and competing globally and nearly 2000 small workshops that produce gold artefacts. These workshops can manufacture and export through other companies."
Wassef, in turn, highlighted that the government substantially supports the sector in overcoming various obstacles facing production and export activities.
Moreover, Abbassi confirmed that Egypt has outstanding designers and that Egyptian products appeal to various tastes in foreign markets.
However, Wassef pointed out that the factories are not fully operational. He noted that operating at full production capacity would enable these factories to meet future demands. He also highlighted the importance of expanding investments in existing factories.
In addition, Wassef indicated that the sector is working on qualifying trained labour to provide a factory workforce. This would increase the quantity of gold produced to meet the targets.
Self-sufficiency of gold ore
Wassef told Ahram Online that Egypt has achieved self-sufficiency in the raw gold factories needed for production.
He explained that consumers' gold items are a primary source for obtaining the raw material used in manufacturing.
Similarly, Gold market expert Amir Rizk told Ahram Online that the quantities of bullion and coins purchased in the local market over the past two years reflect the abundance of raw materials available in the market and of raw material itself.
Meanwhile, Wassef anticipated that the sector would increase exports fourfold during the upcoming period, given its advantages in the gold jewellery industry, which enable it to compete in global markets.
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