Avrio Gold, a leading company in gold trading and jewellery manufacturing, is preparing to inaugurate a new production facility for jewellery and gold bullion on a 1,000 m² site in one of Egypt’s key industrial zones at the start of 2026. The move comes as part of the company’s expansion strategy to boost production and strengthen its presence in Egypt’s dynamic gold market.

Imad Saad, Chairman of Avrio Gold, stated that the company also plans to expand its retail network by opening new branches, including two in the New Administrative Capital and Nasr City, complementing its two existing outlets in the Goldsmiths’ District—one serving wholesale and retail customers, and the other specializing in raw gold trading.

He explained that Avrio Gold is an authorized distributor for several renowned international brands in gold and bullion, offering 21K and 18K jewelry in a wide variety of weights to suit all consumer segments, especially in light of rising prices and reduced purchasing power.

Saad added that the company operates a dedicated branch for raw gold trading, buybacks, and exchanges for all jewellery brands available in the market. It also manages gold transfers for traders both locally and internationally—an advanced system similar to banking operations in the gold industry, where traders purchase from manufacturers and repay the equivalent in raw gold while paying the fabrication costs in cash.

He emphasized that raw gold trading is a cornerstone of Egypt’s gold market, acting as a financial bridge between manufacturers and retailers.

“Gold is the trader’s real capital,” he said, “so replenishing sold quantities immediately at the same price is essential to maintain market stability.”

Saad noted that the company also collects and recycles used (scrap) gold from customers who sell their old jewellery. This material is gathered from various governorates, remelted, and reused as raw input in new production cycles, helping to provide local raw materials and reduce import dependence.

Gold Prices Surge to Record Highs

The chairman explained that gold prices have recently soared to unprecedented levels, with 21K gold surpassing EGP 5,400 per gram, while global prices have climbed 53% over the same period. He attributed the increase to ongoing geopolitical tensions, central bank gold purchases, and declining confidence in the U.S. dollar.

According to Saad, gold prices in Egypt are shaped by three key factors: the international ounce rate, the local exchange rate of the dollar, and market supply and demand.

He pointed out that these record highs have led to a sharp decline in sales across Egypt’s gold markets.

“The streets of the gold souks have become almost empty,” he said, explaining that manufacturers are struggling with weak demand but continue to retain skilled craftsmen to preserve product quality and uphold the reputation of Egyptian jewellery making.

Despite soaring prices, Saad said the local market has not benefited; instead, buying and selling activity has slowed even during traditional high-demand seasons like weddings and holidays, forcing many consumers to postpone purchases.

He explained that factories face significant financial pressure from low sales and high operating costs, yet remain committed to retaining their skilled workforce—the industry’s true “human capital.” Losing these artisans, he warned, would be an irreparable setback. Rising electricity, fuel, and raw material costs have also squeezed profit margins.

Call for Industry Support

Saad urged policymakers to support Egypt’s gold industry with incentive programs, including tax relief, lower fees, and streamlined export procedures to help offset domestic stagnation.

“This is not just a price crisis,” he said. “It’s a demand recession that threatens the loss of craftsmanship built over generations.”

He highlighted the sector’s resilience and ability to rebound quickly with adequate support and access to financial facilities.

Saad also praised the government’s regulatory efforts, noting that the hallmarking authority now enforces stricter purity standards, requiring 21K gold to contain exactly 875 parts per thousand—enhancing confidence in the local market. He added that Egypt’s New Administrative Capital has created new retail opportunities and expanded the reach of gold trading nationwide.

Changing Market Trends

Saad observed that the historic price surge has shifted demand patterns, with nearly 90% of current purchases focusing on bullion and gold pounds. However, he expects the downturn to be temporary, predicting a gradual recovery as income levels improve and exchange rates stabilize.

He explained that the Egyptian pound’s depreciation from EGP 17 to 48 per U.S. dollar over the past three years has increased inflation and eroded purchasing power, but rising wages and service values should help revive demand soon.

Saad emphasized the deep cultural and social ties Egyptians have with gold, describing it as an integral part of marriage traditions and a trusted form of savings. “Public trust in gold has grown stronger as the currency weakened—it’s now the true safe haven for preserving wealth,” he said.

Outlook and Opportunities

Saad expects gold prices to maintain their upward trend globally and locally, driven by geopolitical tensions, central bank diversification away from the dollar, trade disputes between China and the U.S., and persistently high global inflation rates.

He explained that rising costs have led companies to increase fabrication fees by an average of EGP 15 per gram, depending on the type and weight of jewellery. This raises the final retail cost by EGP 60–200 per piece, prompting some consumers to opt for bullion and gold coins to minimize added costs.

However, Saad believes this will not dampen demand. On the contrary, it may prompt faster purchases as buyers anticipate further increases. Fabrication charges have already risen by 20–30% since the beginning of the year, though manufacturers have avoided passing on the full increase to protect consumer affordability. He added that lighter jewellery requires more labour, raising production costs even further.

In the past, bridal sets weighed 70–100 grams, but now typically range between 5 and 30 grams to match purchasing power. Meanwhile, Bedouin and tribal communities—particularly in Matrouh, Sinai, and the Western Desert—are showing stronger demand for larger 24K pieces, prompting companies to create specialized product lines that reflect traditional tastes for wide bangles and heavy sets.

“This trend shows that gold is no longer just an adornment—it’s also a store of value and a symbol of social standing,” Saad said, noting that the variety of tastes between urban and tribal consumers has created fresh opportunities for companies to grow their market share.

A Safe Haven for Generations

In conclusion, Saad reaffirmed that gold will remain the most reliable long-term safe haven for both saving and investment amid ongoing global economic volatility. He advised investors to buy 24K bullion to minimize fabrication costs, while 21K gold pounds remain the most popular and liquid option.

He emphasized that continued government support and easing the burdens on manufacturers will help the sector regain momentum and sustain one of Egypt’s most historic and culturally rich industries.