Azimut Egypt set to launch sovereign-bonds investment fund for Egyptian expats

Ahram Online , Monday 7 Aug 2023

Azimut Egypt is considering launching an investment fund for Egyptian expats to attract subscriptions in foreign currency, Ahmed Abou El-Saad, CEO & Managing Director of Azimut Egypt, said in a statement on Monday.

Azimut Egypt headquarters. Company s website.
Azimut Egypt headquarters. Company s website.

Abou El-Saad revealed that the new fund will invest in Egypt's sovereign bonds. 

Sovereign bonds are bonds issued by a national government, usually to support government spending and to finance public debt.

Egypt's sovereign US-dollar-denominated bonds experienced a slight increase in their returns on international markets in July, rising by over 1 cent.

Abou El-Saad added that the company will offer insurance benefits for Egyptian expats in collaboration with Misr Takaful Insurance, including insurance against death and partial and total disability.

He did not disclose a timeframe for the launch of the new fund.

However, Abou El-Saad said that his company is seeking relevant primary approvals, in collaboration with Nasser Social Bank, before submitting a proposal to the Financial Regulatory Authority.

Azimut Egypt is the local investment arm of Azimut Group, which operates in 18 countries around the globe and manages around $ 70 billion in different asset classes.

Azimut manages assets worth EGP 10 billion in the Egyptian market. These assets pertain to various investment funds, segregated portfolios for Government Entities, sovereign wealth funds, pension plans, and public banks.


az-Gold harvest


The company also owns and manages the az-Gold fund, launched on 21 May to invest in 24-carat gold bars through investment certificates that start from EGP 10. These certificates can be redeemed in cash or grams of gold.

az-Gold,  Egypt’s first minerals investment fund, raised around EGP 200 million ($6.47 million) through 32,000 subscriptions, Abou El-Saad revealed.

He added that the fund, which has so far attracted small investors with limited liquidity, eyes institutional investors in the upcoming period.

Gold is becoming the preferred option for Egyptians hedging against the devaluation in local currency and the inflation it triggered.

A report by the World Gold Council showed that the demand for gold bars and coins in Egypt surged by more than 300 percent every year to over 10 tons in the second quarter of 2023.

Gold prices have been stable since the beginning of July. They have been steadily continuing on a declining trend since May.

The price of 24-carat gold reached EGP 2,451.5 per gram on Monday, 7 August, down 8.3 percent from the price recorded on 1 June and down 17.48 percent from that recorded on 1 May.   

Egyptian Prime Minister Mostafa Madbouly issued a decree on 11 May exempting travellers carrying gold from customs duties and other fees – except value-added taxes (VAT) – for six months. The decision was meant to address the shortage of gold supply in the local market, which caused gold prices to shoot up.  


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