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

According to reports, the geopolitical and economic rivalry between Saudi Arabia and the UAE is extending into the gold trade sector. It is reported that Saudi Arabia plans to purchase gold from war-torn Sudan to weaken the UAE's long-standing dominance in the country's gold exports.

The Sudanese military government has traditionally exported gold mainly to the UAE. Official data shows that in the first 9 months of 2024, Sudan exported approximately 10.9 tons of gold worth $10.5 billion, with the majority flowing to the UAE. However, following Sudan's accusations of UAE interference in the civil war and the formal severance of diplomatic ties last year, Sudan is actively seeking new export channels.

The Sudanese state-owned mineral resources company revealed that the Saudi gold refining company has expressed readiness to immediately start purchasing gold from Sudan. The scale and timing of the related transactions have not been disclosed, and Saudi officials have not responded.

Analysts point out that this move signifies a further escalation of tensions between Saudi Arabia and the UAE, and may open up new competitive fronts on a commercial level. However, some believe that Saudi Arabia may find it difficult to completely replace the UAE's core position in Sudan's gold trade in the short term, with this move carrying more political significance.

Amid ongoing civil war and financial pressures, gold revenue is crucial for Sudan. Officials have estimated that around 80% of gold production may be lost through smuggling, resulting in annual losses of up to $5 billion for the country. With increased Saudi involvement, there may be new structural changes in the flow of Sudanese gold.

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