An analysis prepared by Marsad Al Dahab for Economic Studies, based on World Gold Council data, has revealed that Egypt's average per capita gold share declined from approximately 0.7 grams per person in 2010 to just 0.4 grams in 2025 — a drop of nearly 43% over 15 years. This occurred at a time when gold prices witnessed historic jumps, the dollar exchange rate against the Egyptian pound rose sharply, and domestic savings rates fell to their lowest levels in years.
Marsad Al Dahab stated that this decline does not reflect a decrease in the importance of gold to Egyptians or a loss of confidence in the precious metal, but rather reflects the major economic changes Egypt experienced between 2010 and 2025, which directly affected citizens' ability to save, invest, and purchase gold.
The report clarified that the per capita gold indicator is one of the most important economic indicators related to savings behavior, as it measures the average amount of gold jewelry, bars, and coins purchased by individuals — thus indirectly reflecting purchasing power and the size of financial surpluses available to households.
Gold Prices Rise by More Than 3,370%
Marsad Al Dahab noted that the most influential factor in the decline of per capita gold share is the historic surge in precious metal prices in the Egyptian market.
The price of 21-karat gold per gram — the most widely traded karat in Egypt — opened 2010 trading at 168 pounds per gram, while by the end of 2025 it had reached approximately 5,830 pounds per gram, representing an increase exceeding 3,370% over 15 years.
The report added that this massive price jump means that a citizen who could afford to buy a certain quantity of gold 15 years ago would now need multiples of their previous income to obtain the same quantity — a reality directly reflected in the declining per capita gold share.
It was clarified that the rise in gold prices was not the result of a single factor, but rather came from the interaction of several economic variables, foremost among them the rise in global gold prices, the depreciation of the Egyptian pound, rising inflation rates, and increased production and operating costs.
The Dollar: A Key Driver of Gold Price Increases
Marsad Al Dahab emphasized that analyzing the evolution of gold prices in Egypt cannot be separated from the major changes in the dollar exchange rate against the Egyptian pound over recent years.
The dollar exchange rate rose from approximately 5.62 pounds in 2010 to levels ranging between 50 and 54 pounds during 2025 — an increase exceeding 800% — driven by several phases of exchange rate liberalization and the economic shifts experienced by the Egyptian economy.
The report explained that gold is priced globally in US dollars, meaning any rise in the dollar against the pound is directly reflected in local gold prices, even when global prices remain stable.
It added that a significant portion of the gold price increases seen in Egypt in recent years is attributable to the depreciation of the pound against the dollar, alongside the strong rally in global gold prices.
Inflation Erodes Purchasing Power
The report noted that inflation played a pivotal role in the decline of per capita gold share during the period under study.
The Egyptian economy experienced successive waves of inflation since 2010, with annual inflation rates ranging from below 10% in some years to more than 30% in others, before peaking at approximately 33.9% during 2023.
Marsad Al Dahab stated that the cumulative impact of inflation over the past fifteen years led to a significant rise in the prices of basic goods and services, which increasingly drained Egyptian household incomes and redirected them toward living expenses rather than savings and investment.
The report added that rising food, energy, housing, and transportation costs reduced the financial surplus available to households, directly impacting their ability to purchase gold.
Domestic Savings Fall to Historic Lows
Data from the Ministry of Planning and Economic Development revealed a sharp decline in domestic savings rates during the same period.
The domestic savings rate fell from approximately 13% of GDP in fiscal year 2010/2011 to 6.1% in fiscal year 2023/2024, before dropping to just approximately 1.2% of GDP during fiscal year 2024/2025 — equivalent to around 218 billion pounds, compared to approximately 848 billion pounds the previous year.
Marsad Al Dahab stated that this decline reflects the economic pressures faced by Egyptian households in recent years, with a growing share of income being directed toward covering basic needs while funds available for saving and investment diminished.
The report added that the relationship between savings and gold is a direct one: the less households are able to build savings, the less able they are to purchase gold — particularly given the record price increases.
Population Growth Pressures Per Capita Share
The report noted that population growth represents an additional factor in explaining the decline in per capita gold share.
Egypt's population rose from approximately 82 million in 2010 to more than 107 million in 2025, while total gold demand did not grow at the same pace, resulting in a lower average per capita share of total demand for the precious metal.
The report clarified that population growth requires faster demand growth to maintain per capita levels — something that did not materialize given economic pressures and rising prices.
Egyptians Have Not Abandoned Gold
Despite the decline in per capita gold share, Marsad Al Dahab maintains that the precious metal continues to hold its position as one of Egypt's most important savings vehicles.
The report noted that recent years have seen a shift in purchasing patterns, with a broad segment of citizens turning toward buying gold bars, gold pounds, and smaller weights instead of high-cost gold jewelry, with the aim of preserving savings and reducing manufacturing costs.
It added that this shift confirms that the decline in per capita gold share does not mean diminishing demand for the precious metal, but rather reflects a change in purchasing behavior driven by economic circumstances.
Arab Comparison
At the Arab regional level, World Gold Council data showed that the United Arab Emirates topped the region in terms of average per capita gold share in 2025 at approximately 4 grams per person, followed by Kuwait at approximately 3.3 grams per person, then Saudi Arabia at approximately 1.7 grams per person — compared to just 0.4 grams in Egypt.
This gap is attributed to the higher income levels, financial surpluses, and savings rates in Gulf states compared to the Egyptian economy.
Gold as a Mirror of Purchasing Power
Marsad Al Dahab concluded the report by affirming that the per capita gold indicator represents a true reflection of individuals' purchasing power and the level of savings within an economy.
The report noted that the decline in Egypt's per capita gold share from 0.7 grams to 0.4 grams between 2010 and 2025 coincided with gold prices rising by more than 3,370%, the dollar climbing by more than 800%, and the domestic savings rate falling from 13% to 1.2% of GDP — alongside successive waves of inflation that directly impacted the purchasing power of Egyptian households.
The report concluded that these indicators, taken together, explain the reasons behind the decline in per capita gold share in Egypt over recent years, and make clear that the reduction in quantities acquired does not reflect a diminished importance of gold, but rather reflects the rising cost of accessing it — given the economic challenges faced by Egyptian citizens over the past fifteen years.
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