Dr. Mohamed Farid, the Chairman of Egypt’s Financial Regulatory Authority (FRA), recently discussed with a delegation from the World Gold Council the successful experience of Egypt in regulating gold investment through investment funds. These funds convert precious metals into tradable financial instruments, a move pioneered by the FRA.
Dr. Farid explained that the FRA has successfully created an enabling environment that facilitated the launch of Egypt’s first gold investment fund. This initiative offers citizens a range of investment opportunities starting from the issuance of regulations governing investment funds dealing in metals, the criteria for the registration and delisting of metal custody service providers, and the regulations for listing and delisting entities that investment funds must transact with in the buying and selling of metals.
During the meeting, Dr. Farid noted that the recent period saw the launch of the first Egyptian fund, "AZ-Gold," by Azimut in May 2023. Approval was also granted this year (2024) for a second fund, the Beltone Evolve Gold Investment Fund "Bullion," and a third fund is currently under consideration, which will be managed by a subsidiary of the National Bank of Egypt.
Ms. Cortolus Taskil, Director of Central Banks and Public Policy at the World Gold Council, praised the Egyptian experience in launching gold investment funds. She highlighted Egypt’s focus on transforming gold from a mere commodity into an easily tradable investment instrument.
The chairman of the FRA emphasized that these funds are a significant step toward enhancing the Egyptian government's efforts to achieve financial inclusion. Individual investors can purchase gold through these funds starting with as little as 100 Egyptian pounds, and payments can be made using both electronic and traditional methods.
Dr. Farid added that these funds also provide a hedge against price volatility through participation in a structured and secure investment.
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