Saudi Arabia's Money-Making Strategy: The Gold Trade Battle in Sudan Amid Tensions with the UAE

Recently, Saudi Arabia has entered a new economic battle with the United Arab Emirates in an unexpected sector: gold trade from Sudan. This move indicates the expansion of geopolitical competition beyond traditional borders, as Gulf countries are all eyeing economic opportunities from a country embroiled in crisis.

Increasing Competition in Sudan’s Gold Trade

According to BlockBeats, Saudi Arabia has begun planning to purchase gold from Sudan, a nation devastated by a prolonged civil war. Riyadh’s clear goal is to weaken the longstanding dominance of the UAE in this sector. Previously, Sudan’s military government mainly relied on the UAE as its primary trading partner for gold.

The dominance of these Gulf countries in Sudan’s gold trade is very strong. Official data shows that in 2024, Sudan exported approximately 10.9 tons of gold, valued at $1.05 billion, with most of these goods passing through the UAE’s political and economic gateways. This presence is not only a commercial advantage but also a symbol of geopolitical influence.

Launching a New Export Channel: Saudi Arabia’s Turning Point

The situation changed when Sudan officially severed diplomatic relations with the UAE in 2024 following allegations of military intervention in the civil war. Since then, the Sudanese government has actively sought alternative export channels to avoid complete dependence on a single partner. This is the opportunity that Saudi Arabia is capitalizing on.

Sudan’s state-owned mineral resource company revealed that the Saudi Arabian Gold Refining Company has expressed readiness to “initiate purchases immediately” from the Khartoum government. Although the scale of these transactions has not been publicly disclosed, and Riyadh officials remain silent, signals from the private sector indicate serious intent. This move could mark a strategic turning point in the regional gold trade map.

Rising Tensions and Future Scenarios

Analysts believe this situation reflects an escalation in the rivalry between the two Gulf powers, potentially opening new fronts in regional trade competition. However, not everyone is optimistic about Saudi Arabia’s prospects. Some experts suggest that in the short term, Riyadh will find it difficult to fully replace UAE’s longstanding position, viewing this action as more of a political statement to maintain influence.

With the ongoing civil war and increasing financial pressures, revenue from gold mining activities is crucial for Sudan’s survival. However, officials estimate that about 80% of gold production is lost due to smuggling, costing the country up to $5 billion annually—enough to significantly alter its economic situation. As Saudi Arabia intensifies its involvement in Sudan’s gold trade, the flow of gold from the country will undergo significant structural changes. The battle to control Sudan’s gold trade has only just begun.