Gold funds in Egypt have experienced rapid growth in their asset sizes and trading volumes since the beginning of 2025, driven by rising global gold prices and increasing local demand for safe investment amid economic and geopolitical volatility.

The net assets of the three gold funds operating in the market reached about 2.5 billion Egyptian pounds by July 2025, with the number of client accounts totaling 222,000, according to data from the Financial Regulatory Authority.

In July, the market saw the launch of a new fund called “Dahab Mubasher” by Mubasher Capital Holding, raising the total number of licensed funds to four.

Funds’ Sizes Doubled

Ahmed Abu El-Saad, CEO of Azimut Egypt, told Al Arabiya Business that the size of the “AZ-Gold” fund – the first gold investment fund launched in Egypt – doubled during the first nine months of this year, rising from 972 million EGP at the end of last December to 1.8 billion EGP by the end of last week.

He added that the fund has achieved successive leaps since its launch in June 2023, with a return on investment of 33% since the beginning of 2025 and more than 100% since its inception.

“The number of investors in the fund reached 214,000, of whom 103,000 have held their documents since the start of their investments, despite some exits aimed at profit-taking during periods of gold price increases,” Abu El-Saad said.

Samah Al-Tarjuman, co-founder and chairman of Evolve Holding Investment, said the Beltone Gold Investment Fund recorded net assets of 879.7 million EGP by the end of last week, growing 30% since the start of this year.

Al-Tarjuman confirmed that gold has become one of the most important investment tools that cannot be dispensed with in Egypt and worldwide, calling for the issuance of new gold-backed financial instruments similar to European markets.

Mohamed Nagla, Executive Director of Money and Fixed Income Markets at Al Ahly Investment Management Company, said the size of the “Al Ahly Gold” fund has more than quintupled since its launch in July, reaching 170 million EGP, ranking second in terms of the number of clients dealing with gold funds.

Nagla confirmed that the company has been keen since the fund’s launch on gradual growth in size, awaiting clarity on regulatory procedures for gold funds in the local market.

The Financial Regulatory Authority is currently reviewing requests to launch new gold investment funds, according to previous statements by its chairman, Mohamed Farid.

Egyptian Prime Minister Mostafa Madbouly recently announced the preparation of a new law to regulate investment in gold funds and their trading through a responsible entity, affirming that they represent a “promising market.”

Reasons Behind the Attraction to Gold Investment

Al-Tarjuman emphasized that the continuous rise in gold prices is one of the factors attracting many investors, as well as the remarkable growth in gold fund sizes.

Gold prices globally recorded a historic rise during the first nine months of this year, growing by about 41.24%, reaching an all-time high in September at $3790.74 per ounce.

According to the latest report by the World Gold Council issued in July, the growth rate in gold prices was 26% during the first half of this year.

Nagla pointed out that there is a historic trust among investors of all kinds in gold as a safe haven against currency volatility risks.

“Gold has been rising since the days of the Pharaohs, and its price stability or decline is usually slight and for very short periods,” Nagla said.

Nagla predicted that gold prices would reach $4000 by the end of the year, driven by expectations of US interest rate cuts and ongoing geopolitical tensions, although the dollar’s decline against the Egyptian pound has reduced the pace of local increases.

The Safest Investment

Nagla attributed the notable client interest in investing in gold funds to several reasons, most notably the ease of liquidating gold certificates, the safety of trading them, and the suitability of the funds for the needs of insurance companies and other institutions and companies.

Abu El-Saad agreed that gold funds provide a safe and quick investment mechanism suitable for various financial capacities, in addition to the ease of liquidating or purchasing investments through simple procedures.

The Azimut CEO said gold will remain a profitable investment opportunity in all cases, but it is difficult to predict the rate of profitability, as it depends on a package of changing economic and geopolitical factors.

“Clients must understand the nature of gold investment to achieve good profits from it; it is essentially a long-term investment and requires gradual entry at different prices,” Abu El-Saad said.