What’s Driving Egypt’s Gold Market?

An employee at a gold shop in Khan El Khalili, Cairo (Reuters)
An employee at a gold shop in Khan El Khalili, Cairo (Reuters)
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What’s Driving Egypt’s Gold Market?

An employee at a gold shop in Khan El Khalili, Cairo (Reuters)
An employee at a gold shop in Khan El Khalili, Cairo (Reuters)

Gold prices in Egypt have risen more sharply than global prices recently, which could affect buying and selling in a country where many use gold as a safeguard against economic instability.

Egyptian traders are worried that these recent price hikes, deemed “irrational” by some, might reduce sales. This follows a decline in the gold market during the second quarter of this year, though there has been a recent surge in purchases.

As a result, there’s renewed discussion about reinstating the customs exemption for gold brought in by Egyptians returning from abroad.

The head of the General Gold Division for Gold and Jewelry at the General Federation of Chambers of Commerce Hani Milad told Asharq Al-Awsat that the current market conditions resemble those from a year ago, prompting an urgent meeting on Friday.

They decided to propose to the government, starting Sunday, the reinstatement of the customs exemption.

Milad said this move would help balance supply and demand given the recent surge in gold demand and record high global prices.

“When we proposed the customs exemption in May 2023, the market conditions were similar to now. Reactivating this initiative seems to be the best solution,” said Milad.

“We will present it to the government on Sunday and wait for their response," he added, describing the current price spikes as “irrational.”

Moreover, Milad noted strong buying activity in the past two weeks driving up prices, leading to the proposal for reinstating the exemption. He expressed uncertainty about whether the government will approve or reject it.

Gold performed well in July, rising by 4% to $2,426 per ounce after a slight dip in June.

The increase was driven by lower US 10-year Treasury yields, making gold more attractive, and a weaker dollar, making gold cheaper for foreign buyers. Additionally, interest rates on gold futures increased more than long positions.



Space Tourism Boosts Investments in Innovative Sectors, Advanced Technology in Saudi Arabia

HALO Space is set to launch its sixth space tourism test flight from Saudi Arabia in September. (HALO Space)
HALO Space is set to launch its sixth space tourism test flight from Saudi Arabia in September. (HALO Space)
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Space Tourism Boosts Investments in Innovative Sectors, Advanced Technology in Saudi Arabia

HALO Space is set to launch its sixth space tourism test flight from Saudi Arabia in September. (HALO Space)
HALO Space is set to launch its sixth space tourism test flight from Saudi Arabia in September. (HALO Space)

HALO Space, a Spanish startup in space tourism, is set to launch its sixth space tourism test flight from Saudi Arabia in September.

The announcement underscores the efforts the Saudi Arabia’s Communications, Space and Technology Commission (CST) and General Authority of Civil Aviation (GACA) have been making to demonstrate the Kingdom’s pioneering role in space tourism.

CEO of Halo Space Carlos Mira told Asharq Al-Awsat that the company is committed to supporting Saudi Arabia’s Vision 2030 by accelerating efforts to support space tourism through its strategic partnerships with Saudi agencies.

He noted that the company has also set up an operational base in the Kingdom where it offers direct and close support to the transformation of all economic sectors.

Mira predicted a 700 percent rise in global space tourism trips in the first five years, reflecting HALO Space’s commitment to making space within everyone’s reach. It will also propel Saudi Arabia towards playing a more pioneering role in space exploration and pushing forward its innovation and economic diversification.

He underlined the close cooperation between the public and private sectors in adopting safety standards and protection measures, which are the foundations of the success of the mission.

The cooperation between the CST and GACA embodies HALO Space’s commitment to providing a safe flight in the near future, he added.

Managing Partner at Arthur D. Little Middle East and India and HALO Space board member Thomas Kuruvilla underscored the space tourism partnership with Saudi Arabia.

He told Asharq Al-Awsat that HALO Space’s innovation is part of the Arthur D. Little company and in cooperation with relevant government agencies and aims to bolster Saudi Arabia’s pioneering role in space tourism.

Saudi Arabia’s readiness to become a launch base for HALO Space in the Middle East will lead to more investments in innovative sectors and advanced technologies, he went on to say.

This includes space exploration and tourism, he explained.

Saudi Arabia is set to go down in history for becoming one of the first countries in the world to launch a space tourism flight, he stressed.

The flight in September is a very significant step and it is also in line with Vision 2030, he stated.

This upcoming test flight will feature HALO Space's real-size prototype capsule, Aurora, which will ascend to 30 kilometers above the Earth's surface. The primary objective of this mission is to rigorously validate the integrated operation of all critical systems developed over the past three years, said the company in a statement.

Alberto Castrillo, Chief Technology Officer of HALO Space, stated: "This mission is designed to meticulously validate all our critical systems we’ve been developing for the past three years. The dates and location were set to ensure the reliable operation of our equipment and safe conditions for the teams that will be on the ground operating the flight."

CST has been working with and supporting HALO Space since the beginning of the year, overseeing preparations for the test flight, which is set against the backdrop of Saudi Vision 2030.

HALO Space's decision to establish its flagship operational base and final assembly site in Saudi Arabia underscores the Kingdom's ideal conditions for space exploration activities and support for innovative business models.

As this visionary plan aims to transform the Kingdom into a global hub for technological innovation and economic diversification, CST has also been collaborating with other government entities such as GACA, to meet all regulatory requirements for the test flight, emphasizing the commitment to the safety of both personnel and materials involved in this ground-breaking test.

Frank Salzgeber, Acting Deputy Governor for Space Sector at CST, highlighted the significance of this collaboration, stating: "Along with its regulatory mandate, CST is also undertaking an enabling role within the civil space sector, through fostering innovative business models, promoting space exploration activities, and supporting joint efforts with relevant authorities to develop space sector.”

“This innovative project represents a significant step forward in space tourism, and in support of such technological advancements and investment opportunities in Saudi Arabia, CST is always committed to providing regulatory frameworks that foster innovation among companies and projects like HALO Space while ensuring the safety of personnel and materials,” he added.