Saudi Arabia plans to purchase gold from Sudan, challenging the dominance of the United Arab Emirates

BlockBeats News, January 29 – The geopolitical and economic rivalry between Saudi Arabia and the UAE is extending into the gold trade sector. Reports indicate that Saudi Arabia plans to purchase gold from Sudan, which is embroiled in conflict, in order to weaken the UAE’s long-standing dominance in the country’s gold exports.

Sudan’s military government has previously exported most of its gold to the UAE. Official data shows that in the first nine months of 2024, Sudan exported approximately 10.9 tons of gold valued at $1.05 billion, with the vast majority flowing to the UAE. However, after Sudan accused the UAE of intervening in the civil war and the two countries officially severed diplomatic ties last year, Sudan has been actively seeking new export channels.

Sudan’s state-owned mineral resources company revealed that Saudi gold refining companies have informed the Sudanese government of their readiness to “immediately begin purchasing gold.” 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 in the tense relationship between Saudi Arabia and the UAE and could open new avenues for competition at the business level. However, some believe that in the short term, Saudi Arabia will find it difficult to fully replace the UAE’s core position in Sudan’s gold trade, and this move is more of a political statement.

Against the backdrop of ongoing civil war and fiscal pressure, gold revenue is crucial for Sudan. Official estimates suggest that about 80% of gold production may be lost through smuggling, causing the country an annual loss of up to $5 billion. With Saudi Arabia increasing its involvement, there may be new structural changes in Sudan’s gold flow.