Saudi Arabia's Strategic Move in Sudan's Gold Trade Amid Tensions with UAE

On January 29, Saudi Arabia and the United Arab Emirates are extending their geopolitical and economic rivalry into the gold trade sector. According to BlockBeats, Saudi Arabia plans to procure gold from war-torn Sudan to weaken the UAE's longstanding dominance in the country's gold exports. Previously, Sudan's military government primarily exported gold to the UAE. Official data indicates that in the first nine months of 2024, Sudan exported approximately 10.9 tons of gold, valued at $1.05 billion, with most of it going to the UAE. However, after Sudan accused the UAE of interfering in its civil war and formally severed ties last year, Sudan is actively seeking new export channels. Sudan's state-owned mineral resources company disclosed that the Saudi Gold Refinery Company has expressed readiness to "immediately start purchasing gold" from the Sudanese government. The scale and timing of these transactions have not been disclosed, and Saudi officials have yet to respond. Analysts suggest this move signifies a further escalation in tensions between Saudi Arabia and the UAE, potentially opening new competitive fronts in the commercial sector. However, some believe that Saudi Arabia may struggle to completely replace the UAE's central role in Sudan's gold trade in the short term, viewing the move more as a political statement. With the ongoing civil war and financial pressures, gold revenue is crucial for Sudan. Officials have estimated that about 80% of gold production may be lost to smuggling, causing the country to lose up to $5 billion annually. As Saudi Arabia increases its involvement, the flow of Sudanese gold may undergo significant structural changes.