Saudi Arabia Plans to Purchase Gold from Sudan, Challenging UAE Dominance

Jan. 29 — Geopolitical and economic rivalry between Saudi Arabia and the United Arab Emirates (UAE) is expanding into gold trading, with Saudi Arabia planning to purchase gold from war-torn Sudan to erode the UAE’s longstanding dominance in Sudan’s gold exports. Sudan’s military government has historically sent most of its gold to the UAE. Official data shows the North African nation exported roughly 10.9 metric tons of gold (valued at $1.05 billion) in the first nine months of 2024, with the vast majority bound for the UAE. Ties soured last year, however: Sudan accused the UAE of meddling in its civil war, and the two countries severed diplomatic relations. Since then, Sudan has actively sought new export channels. The Sudanese state-owned Minerals Resources Company revealed Saudi Gold Refinery Company has informed Sudan’s government it is ready to “begin purchasing gold immediately.” Details on the scale or timing of transactions remain unannounced, and Saudi officials have not responded to requests for comment. Analysts say the move signals a further escalation of Saudi-UAE tensions and could open a new business-focused competitive front. Some note, however, Saudi Arabia is unlikely to fully replace the UAE’s core role in Sudan’s gold trade in the short term, describing the move as more of a political statement. Gold revenue is critical for Sudan amid an ongoing civil war and severe financial strain. Officials estimate roughly 80% of the country’s gold production is lost to smuggling annually, costing Sudan up to $5 billion. Increased Saudi involvement could drive new structural shifts in Sudan’s gold flows.