The Federation of Egyptian Industries’ Division of Gold and Created Minerals has prepared a working paper outlining the main problems the gold and jewellery sector is now facing and outlining potential solutions, which will be presented at the economic conference later this month.
Mamdouh Abdullah, a representative of the Federation of Egyptian Industries’ Division of Gold and Prepared Minerals, stated that the division’s work paper outlines strategies to advance the gold industry and increase Egypt’s exports from it, including the demand to talk about the proposal to eliminate valuation fees on the export of gold jewellery, which is scheduled to cost about 0.
5% of the cost of a gold gramme In light of the fall in export during the previous years, what helps to increase Egypt’s exports of golden artefacts, according to the division of the division released on Saturday.
The Korona pandemic and the Russian-Ukrainian war, he continued, have caused a shortage of supply chains in the world economy. As a result, Egypt has a favourable opportunity to become a regional and logistical centre for the gold and jewellery industry due to its strategic location and the implementation of state infrastructure projects in recent years with the aim of promoting and attracting both domestic and foreign investment.
He noted that the high expenses of producing gold jewellery, in addition to downloading the product, stamping fees, value-added tax, and valuation fees of around 0. 5% of its price, limit the ability of the gold sector to participate in increasing the amount of Egyptian exports.
He emphasised that Turkish, Indian, and Italian products are experiencing intense quality and price competition on international markets, particularly in the Gulf, which lessens the likelihood that the Egyptian product will be available there.
He said that the local product has a great deal of quality, with companies importing the latest gold and jewelry manufacturing technology, but loading the product with additional burdens reduces the ability of companies to export and open external markets.
He continued by saying that the gold industry requires facilities to improve manufacture and export, remove export-related barriers, strengthen the consumer market, and increase output levels.
He explained that Egypt’s production of golden artifacts has declined during the current year, due to the decline in sales, and the demand for alloys and pounds for the purpose of investment, with the rise in gold prices in the local market to historical levels.
In light of the state’s recent interest in developing the gold sector and the announcement of the establishment of one of the major gold cities in the Middle East, as well as the establishment of a refinery to purify and refine the extracted gold, in addition to attention to the mining file and the growth of companies, Abdullah anticipated that the concerned authorities would respond to the requests of manufacturers.
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Egypt: The Gold Division requests the removal of export valuation fees.
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