Mamdouh Abdullah, a member of the Board of Directors of the Gold and Precious Metals Division, said that the gold industry depends on many imported production requirements, and with the rise in the exchange rate of the US dollar in the local market, the import cost has accordingly increased.
Abdullah indicated that the market is not stable in the current period, and the factories bear a lot of financial burdens as a result of the continued payment of labor costs and monthly obligations, with a significant decline in sales.
He added, that factories cannot raise fees of production, so the volume of production of gold artifacts decreased, and manufacturing focused on ingots and pounds because they do not need production imported requirements.
Abdullah pointed out the need to remove obstacles to the export of gold jewelry because it expands the consumer market and provides the state with millions of dollars per month, and export is the lifeline for the gold industry.
He explained that the successive rises in gold prices, in light of the decline in the purchasing power of citizens, led to a decline in sales of gold jewelry.
He pointed out the need to work on a legislative amendment aimed at canceling the valuation fees estimated at 0.5% of the gold price, to stimulate companies to expand and pump more investments to meet the demands of foreign markets.
He added that it will also reduce unemployment rates by employing a larger number of workers in factories and increasing gold export revenues that range from between 2 to 2.5 billion dollars, with an annual increase rate that may reach 30%, once the fees are canceled.
Translated by Ahmed Moamar
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