Dr. Nagi Faraj, Senior Advisor to the Minister of Supply and Domestic Trade on Gold Affairs emphasized that domestic gold prices closely mirror those on the global stage. He acknowledged the inherent unpredictability of gold prices, noting that numerous external factors influence whether prices rise or fall.
In recent remarks, Dr. Faraj provided insight into the Central Bank's decision to stabilize interest rates, expressing optimism that this move would anchor further market steadiness. This stability is even more probable if the government approves the extension of the incentive that provides customs duty exemptions on gold imports brought in by returning citizens. However, this exemption, which excludes the value-added tax (VAT), is set to expire by the middle of the upcoming month.
He also shed light on the equilibrium the gold market is currently experiencing due to the abundant influx of raw gold. This influx, amounting to approximately 1.5 tons, came largely from citizens returning from abroad, capitalizing on the aforementioned incentive.
Dr. Faraj did, however, sound a note of caution: discontinuing this beneficial initiative might lead to a surge in gold prices. Such a move would risk isolating the local market, especially given the impending halt on gold imports.
Dr. Faraj concluded that the Ministry of Supply and Domestic Trade is keenly awaiting a Cabinet directive regarding their proposal to prolong the "Zero Tariffs" initiative for an additional six months. This strategy is viewed as pivotal in preserving the national gold reserves and maintaining price equilibrium.