Tell Me Why
Gulf News
Tell Me Why
Tell Me Why investing in gold is now within everyone’s reach
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Share your thoughts with a message.
Gold’s appeal as a safe haven asset is being reimagined for the digital age, as fintech platform OGold makes the precious metal more accessible and usable in everyday life. Ahmed Abdeltawab, Co-founder and CEO of OGold, has the details.
When you start a gold, uh we try to make it accessible for everyone. When we start to fractionalize the gold and give the people the options to start buying gold from Wonderham. Some people say the gold is a commodity, but actually the gold is a money. So you should have the access and you can spend it in any time and you can uh use it in in uh in any or use it uh in daily base. That's what we what we try to do through all gold. Most of the people they believe the gold is good for long term, to buy the gold and keep it for long term because when the uh if you go to traditional market and they try to sell the gold, you lose a big amount of the value based on the discount. But in all gold, when we give the option the client to you know the sale price, we give them option as a master card to use the gold in spending in their uh daily use. We give them the gift card which already linked to the gold, so they have an option to spend it. That means we already we try to promote guys gold is not only for long term, it's not only for investing, gold is your money.
SPEAKER_02So we try to kind of test every time.
SPEAKER_00Hello and welcome to another episode of Tell Me Why. I'm Lachlan Kitchen, and it's great to have you along. Today we've got an interesting topic for you. I'm looking forward to this. In a world of rising inflation and economic uncertainty, more people are looking for smarter and safer ways to protect their wealth. Now, traditionally, gold has always been a safe haven, but for many people, I think they felt it was perhaps both out of reach and rather impractical to use in everyday life. But what if I told you that that's about to change? Joining me today is Ahmed Abdeltawab, the CEO and the co-founder of OGold. Now, this is a pioneering Emirati fintech platform and a Goldback super app, and it's making the precious metal of gold more accessible, flexible, and more usable than ever before. Today we're going to explore how gold is evolving from a traditional store of value into something far more dynamic, and that's what makes it exciting for investors and everyday consumers right across the UAE. Ahmed, thank you very much for joining us here on Tell Me Why. Hi, how are you, everything? Aaron Ross Powell, Jr. Great to have you here. This platform you've created is fantastic. But on a personal note, go back to the start, because you have a background of chemical engineering.
SPEAKER_01Yes, that's right.
SPEAKER_00What makes you go from studying chemical engineering to into the the world of fintech and launching Oak Old?
SPEAKER_01I born in Saudi Arabia, I grew up in Saudi Arabia, then I finished my chemical engineering in Sa in uh Egypt. Okay, then I back to Saudi Arabia to uh continue for the family business in the financial market and the stock market till uh 2018. I ha uh have I remember I have a bad situation in 2018, I back to zero. Okay, then that's why I go to work with uh in refinery. I go to work in the the gold souk, but actually I see something is uh is different than my culture. It's the it's not easy to to find someone to teach you, especially in gold business. Well, they don't want to help other people. They are not teaching it just it is like a family a big family business. This is the gold stu uh industry. It's like a big family business. They just teach each other you should be belong to the family, you should be part to give the trust to teach you something. Especially there is a lot of t tape there is a lot of types of tax because uh the gold is interesting. You get it is already the risk is low and you can make suc money in stable or sustainable t w uh with the time. That's what that's why this business is very unique. Right now, whatever a any big entity or any successful business, it's about how to solve the problem. And that's what I learned from my whole life. What I I trade in stock market, I see the m many stocks doing well when it's this company it solves problems. And that's why when I I work in start working in gold and I found many problems because the gold business is traditional. Everyone till to till today they start to buy and sell through the WhatsApp group or when you if you go to the gold soak, the pricing is not uh the same. Every shop has a price. Uh when you try to sell your gold, you will see a different prices, sometimes a big discounts. All of this issue, it's a problem. Okay? That's why we start Ogold, I start to think about the idea of Ogold, how I can do it fintech to solve these problems. Because when you solve problems, that means you can make a difference, you can have an option to scale up all. And that's what actually we do with Ogold.
SPEAKER_00Yeah, because you're right, when people think of gold, a lot of people still think physically they need to go to the SOKS or the gold markets, they need to go and purchase things, and you need to negotiate when you're there. There's not that fixed price. And I I think that's why with with many people are seeing the economy's changing, uh, rising inflation, record levels in a lot of countries, there is global uncertainty. So I think people, particularly in the UAE, are perhaps thinking differently about how to save and also how to invest. Why do you think that gold is still standing out for many people as a smart and attractive option for investment?
SPEAKER_01The gold is already the main assets or the um uh the main safe haven for everyone over all the world. Whatever the uh the age, whatever the gender, everyone believes in the gold already and all nationalities. If you in the waste east, everyone if you say gold, they understand. You talk about stocks, not everyone will recognize what is the stocks or crypto or whatever. Two things is already or two main assets is already recognized for everyone. It is the gold and the real estate. Okay? And both of them, the uh the already the price is already for let's say thousands of years, is still increasing and going up. The good things in the gold is already the gold, it is easy to liquidate in any time. That's what makes the gold is already more attractive for everyone. Because if if when someone is buying gold, he knows he has already something valuable. The price will be increased, and he has a liquidity. So anytime he can he need a cash or he needs something, he can have access immediately. You can melt melt it down. Yeah, melt it down immediately. That's what makes a difference for Mimu. That's why for everyone the already the gold is one of the main safe assets for uh for the beauty. Plus, there is a mini nationality or many cultures that there is uh uh behavior or culture behavior or religion behavior to own the gold and keep it. And what we see it last couple of years uh give the f re uh r the proof it did the to have assets like gold or just it it did the right thing to that.
SPEAKER_00Looking today, gold's trading I know it does fluctuate um around about four thousand seven hundred dollars an ounce. And I think that's the interesting point and where you've come in to to really solve a problem. Many people might recognize gold as a secure investment, but they may feel it's out of reach. And they may feel that it's something that's only for the wealthy, it's something only for the rich and famous. But what do you do or how are you doing it when you say you're now making gold available to everyone?
SPEAKER_01Actually, when we start all gold, uh we try to make it accessible for everyone. When we start to fractionalize the gold and give the people the options to start buying gold from one derham, that means whatever you have money or when you want to buy gold, you can buy it. Wa dirham, two derhams, whatever. Because most of the people, if um when they plan to buy gold, they said okay, I need to save money then to buy gold. But when the price is going up, they say okay, I'm I should wait till the price is going down, then the price is going up again. So at the end he said, okay, oh, I lose the opportunity. But for what we the solution we provide through our gold, whatever you have, you can't buy the gold. You have dirham, two dirham, whatever, because you already can fractionalize uh uh and buy in in in an easy way for everyone.
SPEAKER_00When you you're talking about purchasing gold, it's a funny point how there's WhatsApp groups and there's all these different ways of buying gold. And you're now giving people a different opportunity to be able to buy, as he said, from as little as one derham. But looking at your your business at OGold, how is it changing the way people use gold in their everyday life?
SPEAKER_01Some people say the gold is a commodity, but actually the gold is a money. So you should have the access and you can spend it in any time and you can uh use it in in uh in any or use it uh in daily base. That's what we what we try to do through all gold. Most of the people they believe the gold is good for long term, to buy the gold and keep it for long term because when the uh if you go to traditional market and they try to sell the gold, you lose a big amount of the value based on the discount. But in all gold, when we give the option the client to know the sale price, we give them option as a master card to use the gold in spending in their uh daily use. We give them the gift card which already linked to the gold, so they have an option to spend it. That means we already we try to promote guys gold is not only for long term, it's not only for investing. Gold is your money. So you can spend it, you can use it in your daily use. So whatever money you have, you can exchange it to gold, and you have you can live in the same way, you can spend it by your coffee, doing everything based on your gold. So we try use the gold as a m uh as a money and make the uh the for for the client or the user easier to use the gold as a money.
SPEAKER_00So so when you have that opportunity of I'm without gold, I purchase um you know a a certain amount, let's say a hundred dirhams, I'm putting investment in. How do I then use that? Talk me through, because that's exciting. How do you then use that to go about buying coffees or oil? Exactly.
SPEAKER_01If you have uh if you're buying gold, that actually you change from Fayette to the gold. Now you have the gold balance. Okay. We already work with uh Mawarit Bank to issuing a MasterCard. This Master Card is exact it's linked to your gold balance. That's mean let's say you have right now 100 grams of gold and today price is uh 500. That's mean you have what worth of 50,000 dirham. Yeah. And tomorrow the price is jumped to 600. That's mean you the same card, it will have the what equal value? 60 uh thousand dirham. When you try to make the payment like any card, like any bank, the system will detect, see how much the gold you have on the selling price, and it will liquidate the gold based on this value. Okay, so right now you have access to your your gold, whatever, in uh any time in any country. Yeah, right now if you use this card, this card can useable in UE, outside UAE. So all the time you have anywhere else where you can use MasterCard, okay. Everywhere. Everywhere. Because we believe that when uh to make a difference, we will believe to buy gold. This we we we know this well. But how can you give you client of the user the ability to have the access 24-7 for their assets? That means if I'm in midnight and I need to cash so I can liquidate part of my gold, see, I can do it by the cart.
SPEAKER_00I I think you probably tapped on to an opportunity. There'll be a lot of husbands out there that'll give the wife the credit card and say, Don't buy today. It'll go up tomorrow. Don't buy today, and they can't. Yes, it'll go up.
SPEAKER_01Actually because the good thing, as I say, it it is about the accessibility. It is about yeah, that that's what makes a difference. I can uh so uh why I better use bank better than other banks? Sometimes uh because it's uh uh the the feature to access my money to because this is my money at the end. I need to access any time. I need to uh if I want to use it, I can use it. And that's what we try to provide from Ogold. You when you buy gold, you can redeem it in any time and deliver it to your home. You have access by card in any time to your uh assets.
SPEAKER_00That's different. Yeah, it's an amazing opportunity that you've got there and the power of a credit card spend of any time to utilize your investment. But that also creates a bit of a problem, and that's the problem often with trust. When it comes to a lot of financial platforms and and new financial platforms, sometimes people hesitate. What is it about O Gold that's got the transparency, I guess, security, and the sharia compliance for anyone who's used.
SPEAKER_01Actually, as you said, you said the min word. It's uh gold's about the trust. Whatever. Also, if you go to buy it from the SOG, the first question you ask him, is it real gold? Show me the certificate, because it's about the trust. And that's what we believe is in O Gold from day one. So in when we start to partnership or provide our model, we start to partnership with the big names to give the people the trust. And as I say, like when we partner with uh some precious metal at the refinery, to one of the biggest refineries in UE, when we try to partner with uh the bank, like Mamare, to provide the MasterCard. Okay, and we already work with the couple of auditing firms, they're already auditing the uh our gold, again, auditing. Plus, we're already issuing the insurance policy for all the gold in the refinery, plus we're just issuing a new thing unique for the client. When you purchase the gold, automatically you will receive an insurance policy by under your name for these assets. All of this give I try we try to give the client the full trust about the solution. You already buy a real gold, the gold is there, you have an access to your gold in any time, you can redeem it, just request it, or you can spend it or sell it by your card in any time. Uh are the credit cards gold as well? Do they come gold gold-colored? It's gold card. It's gold card. Actually, it's the good the funny thing, the this card, when you go to our app and you already just asking for the card, and just to be the card, the c card will be flipped, and you will see the gold balance and silver balance. Yeah. And you see your your balance will be changed by the gold and silver and silver. Let's say you know if if if someone has experience with the crypto market, there is something like this in the crypto market, but actually we already link to the gold. And so it's not just gold. You were saying there is the possibility to do this with silver and other commodities. Yeah, but at this stage it's just gold and gold. Gold and silver. Gold and silver. And silver is very unique. Many times when people ask me gold or silver as an investment, silver number is number one. Why is why is that? Uh the short of supply. Because the the silver, like a gold, it's a precious metal. So it's you already use it again in the inflation. But the difference in silver, that silver there is already using in industrial. So all right now the electric car, the batteries using silver. And that's what creates a big short or short supply in the silver. And that's why the gold uh the silver can go increase you up or the as a return of investment more than the gold.
SPEAKER_00But also, uh I guess yeah, like you touched on before, it doesn't have that emotional relationship that people have with gold. Yes. And is perhaps why it's overlooked as a stable investment. Um looking at the market across the UAE, uh, we know how great the UAE is growing despite the market uncertainty. What trends are you sort of seeing, particularly in fintech in the UAE? What what's your belief over the next 12 to 18 months? How do you think OGold fits into the future of the financial services in FinTech in the region?
SPEAKER_01Uh as you said, the fin tickets are already uh it's about the solving the problems. And the problems all the time it will be there, especially with their uncertainty or change of the situation, like or the uh whatever at a global situation right now. So the problem is there. So m the fin tickets already adapted or try to solve a lot of problems or solve the current problem, it will make the difference. And that's what as a old gold, we do that's what we try to do. People already believe more in the gold. Yeah. Okay, so that's we already uh benefit from this kind of kind of situation. But let's say we just launching the the insurance policy because the trust. Again, the people in this kind of situation say, okay, I want no more I I need more trust. So when we launch in the insurance policy, the people already, okay, that's good. This gives me a more trust level for and that's I say this as a as uh solving a part of the problem. Plus the for the current situation, sometimes you feel you're facing some problems happening. And because uh I remember from last uh couple uh in the middle of the current situation, our servers through the uh AWS have an issue in all the region. We start to we this is an uh we work hardly to give the client the trust. Everything's safe, and how we do doing this, and that's what makes FinTech is different than the other one. I still believe the FinTech have a good opportunity because it's easy to grow. Most of the fintech they have the flexibility and this flexibility can make a big unicorn company. And uh in this kind of situation, like what we seen before, you know, uh you remember in corona time, there is many companies make a very winners and losers, yes. This is the this is the normal. Whatever happens, this kind of situation is big good for if you or can use it as a as a solve a big problem or try just how to solve a real problem, how to give your client the trust you are there. Because the client would be in this kind of situation, if you provide a good service, the client will be attached with you.
SPEAKER_00For anyone who's wanting to get started with O Gold, talk me through the exact platform. If they want to get started, or I want to get started today, uh what is the process in setting up?
SPEAKER_01Actually, it's easy. Just go to App Store or Play Store. Okay. Write O Gold. You already see the app. You should just don't you you download the app. First thing to use uh start the download app and start the registration. Before anything, you can see okay the functionality of the app, but you can't use it till you make it a keyc. Because right here in UE and right now, it's actually it's a globally, it needs a keyc. You should make upload your ID or passport, you should have a face recognition, then the system it will make a screening to be sure there is no issue based on the screen, like any bank is doing. After you get it approved, it will be automatically if there is no issue. Now you can link your card. Okay. The good things we do in in OGold, uh, we have some gamification features. When you add your card, you get some points, and this your boys you can redeem it in the city. It's like a reward system. Yes, it's a reward system. We're doing this to solve some problem because there is many clients before. They start to register the app, but there is no they just register without upload their document or doing anything. So we start giving them some game fiction to be able to follow the process. To follow the process. And and this is, I say, one of solving of the problem. So after that, you can link your card, you can start buying gold or silver, start from one deram. Okay, then you have the shop to redeem your gold. You have already can redeem from uh one gram with a different brand. You can deliver to your home, then you have an option to lead the gold. Or we there is a program we already provide called Earn the Garn Earn Gold or Wakala, which already, if you are buying gold, you can earn a yield up to five percent annually. Wow. Okay. Uh in in gold. Yeah, let's say you already invest right now 100 grams of gold, and you just join or link this uh uh the this amount to the uh Wakala program or earn the program, at the end of the year it will be 105 grams of gold.
SPEAKER_00Okay. So so there's some of the features. What what other features have you got coming next? Can you reveal what what's next on the cards?
SPEAKER_01Maybe we already have many features uh next, but the main one it will be uh the lending, actually, or loan. You can if you when you buy gold, you're I'd say you have right now option to redeem it or sell it. Soon you can ask for loan. Use this your gold as a collateral. You'll pledge your gold and then uh and uh take a loan. This is one of the main features we'll provide it soon uh for the market. We believe it can make a difference.
SPEAKER_00So you can put the gold up as collateral.
SPEAKER_01Yes, yes. This is when we believe it will make a difference, especially at this kind of especially last year and uh last couple of years, and I believe next couple of years, the people still buying gold. And this is obviously only available in the UAE right now? Then now in UAE. Soon it would be uh Egypt and Hong Kong.
SPEAKER_00Egypt being your home country. So and then Hong Kong next. I think they're exciting markets because um it really is a great platform. And you you touched on the idea of it's not just gold, silver as well is available. But beyond buying gold, how do you think anyone who's on O Gold can use it to grow their wealth? Rather than actually just um purchasing the gold and then seeing the the the the rise in gold price. What's the earning side of the platform?
SPEAKER_01I th I just uh explain it's about uh uh one of the things like the inner program. You can buy the gold and link it to your earn a feature in the app, and your gold will be active uh uh uh assets. Right now you make a benefit not only from the appreciation of the price, yeah, you also earn more gold, which make for you uh a good
SPEAKER_00What what's what have been some of the biggest challenges that you faced in trying to launch uh a new company like OGold in the UAE?
SPEAKER_01Actually it's about about um the proof of concept. Don't start a new idea. Don't start any new idea. Don't start to think I need an idea unique, no one do it before. Don't do this. So so your your advice is not do something new, do something better? You yes, just go to C C when you have an idea, have experience in field, go to C check other check uh m most of this idea over all the world, clone one idea, make it better, and provide it to the market. That's it. You don't know is it right uh to win or no, if there is a proof of concept, there is a market uh there is a scalability or no. Well it's the Apple way of doing business. Yes, this is the right thing. I believe because I try I as an entrepreneur I try to do a lot of business. And I remember when I was young, I s I think this in the same way. Oh, I need a special idea. No one ever do it before. At the end there is nothing. The business strategy, go see a good idea, clone it, localize it. It's not about just localize it, say maybe you have a good idea. The best parts of other businesses and Yes, yeah, maybe you have a good idea in China. Just uh if you can uh and this idea when you you see it business uh try to to to uh study the market, uh maybe the idea to be for tier. Localize the idea and provide the market.
SPEAKER_00Ahmed, uh I think what you've created is a fantastic platform. It's both exciting and I think that there's something really unique about this that gives people the opportunity that have always perhaps dreamed of buying gold, and now they have that opportunity from even just a derim. Uh for anyone that is looking to get into investing, maybe they feel like it's not for them or they're a little bit cautious. What what advice do you have to them?
SPEAKER_01It's just a start. That's it. It's actually uh every day you spend let's say twenty dharham at least, thirty dirham on the coffee. Yeah, and just keep buy something. Have a it's uh gold. It's good. Just save in anything. And these are the normal things our parents doing before. And they did the right things and we see it's can make a difference. If you save every day five dirham or ten dharham and key and you keep it and buy it in gold, and we know the gold is going up. Yeah, uh this time the gold is good, yeah. And right now, after the gold already reach about five thousand uh five uh five five thousand five hundred dollar per ons and make a correction, it's good.
SPEAKER_00That's actually great advice. If you took one coffee a week, your twenty dirhams, and then suddenly you put that into gold, at the end of the month you've got eighty dirhams, and then you keep going. It's a great mindset to suddenly change the way you're spending and the way you're looking at money.
SPEAKER_01Yes, and and that's why the uh the good things right now we start to see it in Gen Z. Yeah, right now I see my kids start right now save money when they already save that. So they already saving money as a cash. But the good thing is to save it in gold, especially with this kind of uh inflation and especially right now for the current.
SPEAKER_00Is that all kids or is that just your kids? Because they've heard that. No, all the kids.
SPEAKER_01The good thing is all the kids and right now all the banks provide accounts for the kids with a saving feature to give them some gold to doing or some incentive if they start to saving. Because saving is is a good feature at the start. Yeah, before you teach your kids the investing investing, you should k teach them the saving. So at the start, how they are saving the money. If they are saving well, you can invest in the in the future. The good things in the gold, it will make it the both. It's the saving and investing.
SPEAKER_00What did it teach you? Because I can see you change when you mentioned how you had that that situation of every entrepreneur where you went back to zero. When you went back to zero, what did that teach you about investments and seeing opportunities?
SPEAKER_01Actually, uh when I back to zero, uh I believe this is the the the uh the life and and uh it can be happened. And uh it's normal to back to zero. Any entrepreneur or any businessman with the time, he has the chance to back to zero, or at least he sees the zero. Uh it's about the continue. You lose the money, but not but you have the experience.
SPEAKER_00So what you build it in ten years, it's you can build it in ten months. So that's a real entrepreneurial entrepreneur's mindset of uh the failure, the learning through failure. I may have lost the money, but I've gained all of this experience. Look at what I've learned that I can now utilize next time.
SPEAKER_01100%. And that's what makes it different. You should start again because it's not about the money. The money, I say that it's about you already just try to build something right. You should should back to the track. When you have the chance to back the track, you will have again the trust of the investor. They will come to join to you. So the money will come. But the main thing is as I say, you should be like a warrior. You try you should fight. And this time I remember I say for myself, now there is nothing to lose. I already lose everything. I would not I I don't have a thing to lose anymore. That's I should that's why I should do it. I should back, I should try to uh to work. I back to as I say, I go to work uh in the gold silk, I start to take take uh uh ideas, steps, then I uh I work in the stock market again. But in my mind, I remember there's a problem in this business, the gold market. I should uh have an idea to this market. I could take two years, then the corona time is coming. I remember corona time I make good business in the stock market, because the stock market doing well after the good. Yeah. After crash is going big move to that's for me was very interesting. And uh I already make a good recovery from this um uh the big move after the corona time. Okay. Then I say, okay, I I say I already um father for five kids. Okay, so I start to think I'm sure I should have. You've got a few mouths to fade. You need to be successful. Yes, I say, okay, I should start to build something for the future. Uh and I have experience in the gold, and I know this market is already there is a a big problem. And as I say, it always I just start to see internationally who already make up uh uh smart ideas for the gold business. Yeah. So I know I see some ideas in militia, some ideas in India, some idea in in Turkey. Some I start just to say, okay, now I'm in UE, the problem here, so I can we can start. I already uh work with uh my partner Bandar from Saudi Arabia, Ali already from uh Egypt, already my partner Mohammed Masoo, you work together to start say, okay, guys, we want to do start to fintic app backed by gold, start the first feature will be buy and sell gold. This is the easy feature. Then with the time, by the way, the model is it's changing too much on uh on the journey. Yeah, I don't have that right now what we have right now wasn't in uh written uh from uh two two years when we start. No. When we start from two years ago, it's about just the buy and sell the gold. In fractionally, that's it. This is what the idea.
SPEAKER_00Well, I'm looking forward to seeing. If it was that two years ago to where you are now, to where it's gonna be in ten years, I think is gonna be very exciting. And I think we're all going to look forward to seeing what happens to O Gold. We do appreciate you coming in and sharing your insights both in the financial market and also as an entrepreneur. Ahmed Abdeltab, the CEO and the co-founder of OGold, thank you very much for coming on Tell Me Why. Thank you for just I'm Lockham Kitchen. Thank you very much again for joining us on this episode of the Golf News podcast Tell Me Why. And don't forget, you can catch up on previous episodes of Tell Me Why or all of our podcasts. Head to the website golfnews.com forward slash podcasts, and we look forward to your company next time.