Company leaders in an interview with “Al-Mal”: “New Egypt Gold” plans to pump 40 million pounds to expand its branches
The New Egypt Gold Company for jewelers plans to invest £40 million during 2023 to increase the number of its branches in the governorates to 11, from the current 9, by adding two new branches, the first in Upper Egypt and the second in the factory’s main building in Obour.
Al-Mal interviewed the company’s CEO, Eng. rely more on advanced technological techniques.
At the outset, Tariq Al-Tarouti, CEO of New Egypt Gold, said in his interview with Al-Mal: The company aims to increase production capacity, due to increasing demand, and as part of its plan to expand exports in the coming period.
Al-Tarouti predicted that local demand for gold will decrease slightly next year. Due to the high price, with the explanation that the quantities sold will decrease, but their value will increase.
Al-Tarouti pointed out that if you look at gold prices over the past decades, you will fluctuate between highs and lows; Because it is a commodity that is affected by several factors, most notably the price of the dollar against the pound and the price of an ounce globally.
Tarouti pointed out that gold is a safe haven in times of crisis, protection from crises and wars, and can represent savings for the future and investment for many families.
He emphasized that speculation has a negative impact on the gold market, as it creates confusion for producers that does not allow them to accurately develop their investment plans.
He attributed the current fluctuations in gold prices to global conditions, starting with the Corona pandemic, ending with the Russian-Ukrainian war and other successive crises.
He emphasized that the state of instability in the domestic markets is out of control, and among the main reasons for the state of uncertainty is the rise in interest rates in central banks at the global level.
He explained that it is difficult to predict next year’s gold prices; Especially since it is a commodity subject to supply and demand factors.
He called for the intervention of regulatory bodies. to control markets and limit speculation, indicating the possibility that the state determines the price of gold through its institutions, as happens in the price of the dollar; To preserve citizens’ savings in light of the high price of local demand for the yellow metal.
He explained that the higher the price of gold, the greater the demand for that metal, pointing out that the large increase in the metal recently was invented by some and was not the result of market mechanisms.
He found that some importers buy gold and re-export it to get dollars to finance their import operations, asking: Who controls the price of gold locally? He said: “What is happening locally with gold is black market speculation, just like what is happening with the price of the dollar.”
He pointed out that “New Egypt Gold” has a large industry, controls about 30-40 percent of the Egyptian market, has about 1,500 workers, and will export significantly in the coming period.
He added that the company recently exported to a number of countries, mainly to Saudi Arabia, the United States of America, the UAE and other unknown countries, stressing that the Egyptian product is recognizable, high-tech and of high quality. .
He called on the government, represented by the Ministry of Supply, to abolish export valuation fees in the coming period, to help increase the gold sector’s exports, compete with global markets and increase the added value of Egyptian products.
He denied the company’s intention to invest in gold mining, explaining that Egypt Gold does not import gold from abroad.
He explained that the buyer of gold is different from the buyer of diamonds, because most consumers accept the purchase of gold, pointing out that recently there has been a shift towards the purchase of diamonds, but to a small extent, and that diamonds are measured in carats, since a gram consists of about 5 cards.
In a related context, Eng. Mohamed Awad, General Manager of Factories at New Egypt Gold, disclosed that the company’s factory in El-Obour covers an area of 10,000 square meters and includes more than one division for the production of gold artefacts, consisting of four production floor, and includes a variety of in-house factories, including factories of different styles, including Indian, Gulf, European and Egyptian flavors, producing 21, 18 and semi-factories.
In his interview with Al-Mala, Awad confirmed the existence of a plan to expand the factories internally, by changing the internal design of the factory and starting new internal factories.
He added that the production of the company’s factories increased by 200 percent, which is focused on the tourism product during the current year, pointing out that “New Egypt Gold” has about 9 branches, including 4 branches in the Al Sagh area, and a branch in Heliopolis, in addition to branches in the cities and provinces of Alexandria and Mansouri, Tanta and Assiut.
He continued: “The company aims to export around 10% of its production to 4 regions, including Turkey, America, the Gulf and Jordan.”
He added that the challenges facing the sector are represented in securing hard currency; Due to the import production requirements of companies in the sector, explaining that Egyptian companies and factories keep pace with global industry, modern technology and the demands of international exhibitions.
He added that the sector needs the procedures and legislation of the chambers of commerce, above all the abolition of valuation fees, and the activation of the role of the Sector for Gold and Producers in order to set clear mechanisms for the market and open the door for cooperation. between producers and the Ministry of Supply in order to establish a stronger system of price and market control of yellow metals.
He emphasized that the inclusion of gold in commodity exchange could contribute to better market control instead of the current state of confusion. Since gold is valued in dollars.
He expected that the coming period will witness control measures to control the market after the state of confusion in the markets, hoping that the price of gold will become local, in line with the international prices of the metal, away from the speculation that is currently underway. that take place in the markets.