Egypt launched its first gold investment fund on Sunday.
The Financial Regulatory Authority launch follows approval by the cabinet on Wednesday for a new import scheme allowing incoming travellers to bring with them unlimited gold over the next six months, while only paying a value-added tax on it upon arrival.
Though the fund will operate under the oversight of the FRA, it will be managed by private companies Azimut Egypt Asset Management and Evolve Investments.
The fund, which will operate with a minimum of 5 million Egyptian pounds, will buy and sell gold through bodies registered under the authority and will offer investment certificates backed by gold starting from 10 pounds, with a minimum requirement of certificates amounting to 1,000 Egyptian pounds ($32).
The fund will work with private commodity traders as well as bodies that store and preserve gold, the authority said.
All private companies it deals with must be at least two years old and must be listed on the Egyptian stock and commodities exchanges.
The authority added that the fund would promote financial and investment inclusion by diversifying the investment options open to Egyptians and that the framework for the fund’s launch would be used to start more precious metal funds in the future that are “compatible with the investment habits of various societal segments”.
