Iraq Launches 'City of Gold' in Baghdad to Boost Non-Oil Economy and Jewelry Industry
In a move with significant economic and strategic implications, Iraq has officially launched the 'City of Gold' project in the capital, Baghdad — the country's first zone dedicated to the manufacturing and marketing of gold and jewelry. The initiative is part of a broader government plan to stimulate the non-oil industrial sector, create jobs, and elevate Iraq's regional standing in the gold jewelry market.
An Integrated Hub for Gold Manufacturing
According to Haider Makiya, Chairman of the National Investment Commission, the project falls under the state's economic diversification strategy, aiming to reduce reliance on oil revenues and stimulate national income. The city will be established on nearly 50,000 square meters in the Al-Nahda area of Baghdad and will feature workshops, factories, and refineries for gold processing, along with specialized training centers in jewelry design and craftsmanship, and commercial markets for both local and international gold products.
Makiya explained that the project will be carried out as an investment venture in cooperation with the Trade Bank of Iraq (TBI), which will fund and support its execution phases. This will enable the participation of both local and international private sectors and attract global luxury brands to the Iraqi market.
Reviving a Neglected Sector
Iraq's gold sector suffers from a lack of supporting infrastructure and limited domestic manufacturing, resulting in a heavy reliance on imported finished gold — particularly from Turkey and the UAE. Project leaders hope that the City of Gold will reverse this trend and transform Iraq from an importer into a regional hub for production and export.
Mohammed Naeem, Advisor to the Prime Minister on Investment Affairs, noted that the project goes beyond establishing a marketplace. It envisions a comprehensive ecosystem, including technical education and workforce development, by founding a vocational institute to train young people in gold craftsmanship, especially amid growing demand for skilled labor in the industry.
Positive Market Reactions
The project has been met with enthusiasm from economic circles, with experts saying it could represent a turning point if linked to broader reforms in the sector's legal and financial frameworks. Economist Nabil Al-Marsoumi commented that the City of Gold reflects "localization of a traditional industry with high added value" and could contribute to improving the balance of payments through future exports.
Meanwhile, the Iraqi Goldsmiths Association has called for the inclusion of local artisans and traditional workshops in the design and operational phases to ensure skill transfer to younger generations and avoid monopolization by large companies.
A Regional Outlook
Iraq's City of Gold emerges at a time when the region is seeing intense competition in the jewelry industry, with established centers like Dubai, Riyadh, and Cairo. However, Iraq is banking on its rich heritage in precious metal craftsmanship and a vibrant domestic market to reposition itself as a key player in the field.
Amid the many challenges facing Iraq's economy, the City of Gold presents a promising opportunity — not only to revive a long-neglected sector but also to reshape the country's image as a hub of innovation and manufacturing. If successful, the project could pave the way for a new 'Made in Iraq' label in the world of gold and jewelry in the coming years.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters
Arts & Culture
"Jurassic World Rebirth" Gets Streaming Date
News
China Launches Largest Ever Aircraft Carrier
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Arts & Culture
South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle
Business
Egyptian Pound Undervalued by 30%, Says Goldman Sachs
Sports
Get to Know 2025 WWE Evolution Results
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
News
Flights suspended at Port Sudan Airport after Drone Attacks
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
a day ago
- See - Sada Elbalad
Global Gold Demand Rises 3% in Q2 2025 Amid Increased Investment
Waleed Farouk The World Gold Council announced that global demand for gold, including over-the-counter trading, increased by 3% year-on-year, reaching 1,248.8 tons in the second quarter of 2025, with investment rising by 78%. Gold prices have risen by 26% so far this year, after hitting a record high of $3,500 per ounce in April, as uncertain global trade policies and geopolitical disruptions fueled investment flows into safe-haven assets. The World Gold Council, an industry body that includes global gold mining companies, reported that demand for gold bars rose by 21% in the second quarter, compensating for the ongoing decline in demand for coins. Earlier in July, the World Gold Council announced that physically backed gold exchange-traded funds (ETFs) saw their largest half-yearly inflow since the first half of 2020 during the period from January to June. Global consumption of gold jewelry, the main category for physical demand, fell by 14%, reaching 341.0 tons, the lowest level since the third quarter of 2020, which was impacted by the COVID-19 pandemic, as rising prices deterred buyers. The World Gold Council stated that "most of the decline came from China and India, whose combined market share fell to below 50% for the third time in the past five years." According to the World Gold Council, central banks, another major source of demand for gold, reduced their purchases by 21%, reaching 166.5 tons in the second quarter, based on reported purchases and estimated unreported purchases. On the supply side, recycling added 4%, reaching 347.2 tons in the second quarter, but remained relatively low despite record prices, as Indian consumers chose to replace old jewelry with new pieces or pawn them as collateral for loans. The World Gold Council has lowered its estimate for central bank gold purchases this year, adding that the long-term trend of central banks reallocating investments from U.S. assets to gold remains intact. The World Gold Council also noted that gold ETFs have additional growth potential in the second half of this year, with expectations for a slight decline in retail investments. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results
See - Sada Elbalad
a day ago
- See - Sada Elbalad
Gold Recovers After July Losses: Dollar Decline Boosts Hopes for Increased Demand
Waleed Farouk Gold prices in the local market saw a slight decline in July, with the precious metal losing around 100 EGP per gram. This drop occurred amid increasing volatility in global markets and strong expectations of a possible interest rate cut by the U.S. Federal Reserve. Despite these monthly losses, gold markets showed clear signs of recovery in the last week of July, supported by a weakening U.S. dollar and weak economic data that increased demand for gold as a safe haven. Gold prices stabilized during today's trading, with the price of 21-karat gold reaching 4600 EGP per gram, compared to the close of the previous day. Meanwhile, the price of one ounce rose by about 26 USD to record 3363 USD during the week ending last Friday. Additionally, the price of 24-karat gold reached 5257 EGP, 18-karat gold recorded 3943 EGP, and 14-karat gold hit 3067 EGP. The price of the gold pound was approximately 36,800 EGP. On Friday, gold prices ended the day with a local rise of 80 EGP, as 21-karat gold opened at 4520 EGP and closed at 4600 EGP. Meanwhile, the price of one ounce rose from 3291 to 3363 USD. Gold Prices in July: A Brief Overview The price of 21-karat gold opened July trading at 4620 EGP per gram and closed at 4520 EGP. At the same time, the price of one ounce on the global market decreased, opening at 3308 USD and closing at 3291 USD. Support for Gold from Weakened U.S. Economy The markets were affected by comments from U.S. Federal Reserve Chairman Jerome Powell, who mentioned that no final decision had been made regarding an interest rate cut in September. This led to a drop in gold prices to their lowest level in four weeks. However, the market quickly recovered, supported by disappointing U.S. job data, which showed the U.S. economy added only 73,000 jobs last month. This reduced market confidence and pushed investors to turn to gold once again. Expectations for Further Monetary Easing By the end of the week, the probability of an interest rate cut in September had risen to 92%, according to CME FedWatch, opening the door for gold to break through the 3400 USD per ounce level. Experts predict that speculative flows and increased demand for safe-haven assets will drive gold prices above this level, especially amidst global trade tensions and weak U.S. data that could accelerate monetary easing. Rising Investment Demand Global reports show a significant increase in demand for gold from investors. According to the latest report from the World Gold Council, demand for gold-backed exchange-traded funds (ETFs) reached its highest level since 2020, reflecting the growing interest in gold as a tool for wealth preservation amidst economic uncertainty. Trade Tensions Support Gold As for trade tensions, the United States imposed high tariffs on imports from certain countries on August 1, further strengthening gold's role as a global currency asset. As central bank reserves shift from the U.S. dollar to gold, analysts expect this trend to continue in the coming period, supporting gold's status as a safe haven in emerging markets. Markets are now awaiting next week's data, including the Services Purchasing Managers' Index (PMI) on Tuesday, the U.S. 10-year Treasury bond auction on Wednesday, the Bank of England's monetary policy decision, and the U.S. weekly unemployment claims data on Thursday. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results
See - Sada Elbalad
3 days ago
- See - Sada Elbalad
Egypt's Gold Jewelry Purchases Drop 17% in Q2 2025
Waleed Farouk Egyptian demand for gold jewelry saw a notable decline in the second quarter of 2025, falling by 17% compared to the same period last year, according to a report released Thursday by the World Gold Council. The report stated that Egyptians purchased approximately 5.7 tonnes of gold jewelry in Q2 2025, down from 6.8 tonnes in Q2 2024, and lower than the 6.4 tonnes recorded in the first quarter of this year. Saeed Imbaby, Executive Director of the "iSagha" platform, attributed the drop to a surge in resale activity as individuals capitalized on high gold prices to lock in profits. Speaking to the 'Ayar 24' news outlet, Imbaby explained that the record-breaking global gold prices, coupled with the local exchange rate surpassing 50 Egyptian pounds per US dollar, contributed to weakened consumer demand. He noted that gold purchases in Egypt have become more necessity-driven — such as for weddings — or come from investors shifting away from sectors like real estate. These investors aim to temporarily preserve capital in gold, intending to sell within six to twelve months. This domestic decline comes in contrast with the broader global trend. The World Gold Council reported an increase in global demand for gold in Q2 2025, driven by strong investment demand, despite a drop in central bank purchases. According to the report, total global demand for gold — including over-the-counter (OTC) trading — reached 1,248.8 tonnes during the second quarter, marking a 3% year-on-year increase. Investment demand surged by 78%, supporting the overall growth. Conversely, central bank gold purchases declined significantly, totaling 166.5 tonnes in Q2 — about one-third less than in Q1. This pushed total central bank acquisitions in the first half of the year to their lowest level since 2022. Jewelry consumption globally also declined by 14%, falling to 341.0 tonnes — the lowest level since Q3 2020. Commenting on these developments, John Reade, Chief Market Strategist at the World Gold Council, said that rapid price increases reduced the incentive for some central banks to continue buying. He added that the sharp gains raised concerns among investors about potential future price corrections, which in turn dampened demand. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results
