Egypt approves 1st fund to invest in gold

Egypt approves 1st fund to invest in gold

Egypt announced the approval of the first fund to invest in gold and minerals as an important step to regulate the dealings of investment funds in minerals. 

FRA’s current main strategy is to back the Egyptian government’s efforts to boost levels of financial and investment inclusion and upgrade the non-banking financial sector.

The Financial Regulatory Authority (FRA) is the authority responsible for monitoring and regulating non-banking financial markets and instruments.

That is including the Capital Market, the Exchange, and all activities linked to insurance services, mortgage finance, financial leasing, factoring, and securitization. The authority’s role is to manage the market and make sure of its stability to attract more local and foreign investments. 

According to Article (35) of the Capital Market Law, FRA’s Board of Directors can authorize the fund to deal in movable financial values, including minerals.

The FRA will be issuing all regulatory and legislative decisions and controls to manage the dealings of investment funds in minerals. 

These regulations issued by FRA include Resolution No. 51 of 2023 which set the conditions that must be met by mineral preservation service providers, and Resolution No. 52 of 2023 which entails the conditions that must be met by investment fund entities in order to purchase, deal and sell minerals.

The fund will be run by Evolve Azimut, a joint venture between Evolve Holding and Azimut Egypt. 

Evolve, an investment holding company was launched with a capital of EGP 70m (US$2.3), shared with eight local investors in the fields of financial markets, commodities, and technology.

The company’s main goal is investing in gold-backed financial instruments, as a first stage, followed by the addition of minerals and other financial instruments.

The investment document starts from EGP 10 and its redemption will be available in cash and in kind, Ahmed Abul-Saad, Managing Director of Azimut Egypt, said to local media.

Saad explained that the aim of the fund is to provide diversified investment tools to interested investors, especially with the increasing demand for investing in gold as a safe haven.

He noted that subscriptions to the fund will be available to individuals.

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