Marsad Al-Dhahab revealed the results of an extensive survey conducted from early June through recent days, with the participation of 688 traders, manufacturers, and workers in the gold and jewelry sector. The survey aimed to track market trends, analyze the main challenges facing industry and trade, and gauge reform priorities from the perspective of sector personnel.
The Director of Marsad Al-Dhahab for Economic Studies stated that the survey directly reflects the vision of insiders within the sector and provides a realistic picture of reform priorities, emphasizing that the results represent the trends of a broad segment of manufacturers, traders, and market workers.
He added that the survey findings revealed that 78.4% of participants are dissatisfied with current policies regulating the gold and jewelry sector, as 45.8% expressed dissatisfaction, while 32.6% confirmed they were not satisfied at all, compared to 21.6% who expressed partial satisfaction, whereas the fully satisfied category recorded no notable percentage.
He noted that these results reflect a widespread conviction regarding the necessity of re-evaluating policies governing the gold industry and trade to align with the variables experienced by the market in recent years.
The survey revealed that easing tax burdens came at the top of reform priorities from the perspective of sector workers, with 82.7% of participants calling for a review of tax burdens, considering it the most impactful measure for revitalizing the market and supporting the industry. Meanwhile, 11.3% believed that full commitment to the electronic invoicing system represents a priority for achieving fair competition and regulating trade, whereas other proposals, including simplifying tax procedures or alternative solutions, received limited percentages.
He explained that this result reflects a growing awareness among workers that developing the tax system is not limited to easing financial burdens alone, but also includes simplifying procedures and linking taxes to actual profits rather than the value of raw gold, contributing to encouraging investment, reducing operating costs, and stimulating the formal economy.
Survey results also showed that weak sales have become the single largest challenge facing the gold and jewelry sector at present, chosen by 75.1% of participants as the most impactful problem in the market, ahead of high prices which received 15.8% of votes. High craftsmanship fees ranked third at nearly 8%, while tax issues, liquidity shortages, and other challenges received limited percentages.
He emphasized that these results indicate that the current crisis is no longer tied solely to rising gold prices, but has become more closely linked to declining purchasing power and lower buying enthusiasm, which directly reflects on trading volume within the market and affects various links in the industry chain. He stressed that revitalizing demand requires integrated measures including improving the tax and regulatory environment, reducing production costs, and supporting exports.
Regarding profit margins, survey findings showed that 64.6% of participants view a profit margin of 150 EGP per gram as the most suitable level given the significant surges in operational and production costs during the recent period, while 20.7% preferred a profit margin of 100 EGP per gram, and 14% believed current conditions require a margin exceeding 150 EGP. In contrast, a 50 EGP per gram profit margin received support from only 0.7% of participants.
He noted that these findings reflect an effort to strike a balance between commercial sustainability and maintaining consumer purchasing power.
On the file of gemstone-set gold jewelry, the survey revealed that 37.9% of participants preferred introducing jewelry where stones are non-refundable upon resale, while 36.2% supported selling jewelry on the basis of net gold weight without calculating stone weight. Meanwhile, 22.9% saw expanding the production of plain jewelry as the most suitable solution, whereas continuing the system of offering jewelry with refundable stones received support from only 3% of participants.
He explained that these results reflect a clear desire to establish more transparent and equitable rules for trading set jewelry, safeguarding consumer rights and minimizing disputes upon resale.
The survey also addressed an important technical file within the market regarding karat differentials, where results showed that 56.3% of participants view modifying the calculation mechanism for bullion labor differentials as the most effective solution to address this issue. Meanwhile, 41.6% supported requiring all companies to buy back their products as the most impactful measure for enhancing confidence in the market and facilitating trade flow between manufacturers and traders, while other proposals received limited percentages.
Regarding craftsmanship fee mechanisms, survey results showed that the majority of workers adhere to free competition, with 84.1% of participants supporting keeping craftsmanship fee determination free for each factory or trader according to product nature, quality level, and services provided. In contrast, 13.8% preferred having a benchmark index to help consumers compare prices, while the idea of imposing a unified craftsmanship price received very limited support.
He affirmed that variations in craftsmanship fees are part of natural competition, given differences in design, manufacturing quality, brand value, and services provided by each manufacturer or trader.
Open proposals submitted by participants revealed that workers in the gold and jewelry sector do not view current challenges as isolated issues, but rather believe that market development requires integrated reform covering legislative, regulatory, and economic aspects, thereby bolstering sector stability and raising its competitive capacity.
Survey findings showed that among the top proposals receiving participant support was the establishment of a supreme council or authority for the gold and jewelry industry and trade, comprising representatives from manufacturers, traders, government, and regulatory bodies to coordinate policies, discuss challenges, and set a unified vision for developing the sector.
Participants also called for tightening control over gold karats starting from early production stages, developing inspection and hallmarking systems, and expanding the application of laser hallmarking and barcode technologies to raise transparency, enhance product traceability, combat commercial fraud, and preserve consumer trust.
Proposals also included unifying transaction mechanisms between factories, wholesalers, and retailers, and setting clearer rules for sales and buyback operations, thereby reducing commercial disputes and achieving greater stability within the market.
On the social front, participants called for improving conditions for gold and jewelry sector workers by providing a comprehensive health insurance umbrella, focusing on vocational training, and developing technical labor skills as key elements in preserving the quality of Egyptian manufacturing and boosting its competitiveness.
Furthermore, participants called for providing more support for gold jewelry exports and working to eliminate obstacles facing Egyptian companies in foreign markets, while reviewing tax calculation mechanisms to tie them to actual activity profits rather than raw gold values, contributing to easing financial burdens on producers and traders and encouraging expansion in investment and production.
He concluded that the survey results reveal a broad consensus among sector workers regarding reform priorities, which center on building a more efficient and stable business environment capable of keeping pace with developments in the gold market.
He added that the most prominent priorities consist of improving the legislative environment, easing tax burdens, and stimulating sales, alongside developing trading mechanisms for set jewelry, addressing karat differential issues, and maintaining free competition in craftsmanship pricing, thereby enhancing trust between producers, traders, and consumers.
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