Saudi Arabia enters the Sudanese gold market, challenging the dominance of the UAE

In a move that marks an escalation in the trade rivalry between two Gulf powers, Saudi Arabia has begun efforts to become a major buyer of Sudanese gold. According to reports from BlockBeats, this step aims to erode the historical control that the United Arab Emirates has exercised over Sudan’s gold exports, redirecting trade flows amid deep diplomatic tensions between the two nations.

A geopolitical rivalry expanding into gold trade

The competition between the UAE and Saudi Arabia has transcended traditional sectors to penetrate the natural resources trade. Previously, the Sudanese military government channeled most of its gold exports to the United Arab Emirates, a deal that was a pillar of its foreign trade. Official data reveal that during the first nine months of 2024, Sudan exported approximately 10.9 tons of gold, worth about $1.05 billion, with the UAE being the predominant destination for these shipments.

However, allegations of interference in the Sudanese civil war led to the formal break in relations between the two nations just over a year ago. In response to this diplomatic rupture, Sudan has begun actively exploring new avenues to place its gold production in alternative markets.

Sudan seeks to diversify its gold exports after break with UAE

The state-owned company responsible for managing Sudan’s mineral resources has received positive signals from the Saudi industry. The Saudi Gold Refinery Company expressed its willingness to begin immediate purchases of Sudanese gold from the Khartoum government. Although specific volumes and the schedule for these transactions remain secret, the gesture would represent a significant shift in the region’s gold trade geography.

Consulted analysts interpret this move as a sign of deeper confrontation between Saudi Arabia and the United Arab Emirates, with the potential to open new fronts of competition across different commercial sectors.

The real challenges of replacing an established monopoly

Despite this Saudi initiative, experts warn that fully replacing the central role of the UAE in Sudanese gold trade will face considerable obstacles in the short and medium term. Some interpret the move primarily as a political statement of intent rather than an immediate commercial transformation.

For Sudan, gold revenues are vital amid the financial crisis caused by internal conflict. Authorities estimate that approximately 80 percent of production is lost annually due to smuggling and illegal diversions, representing economic losses close to $5 billion per year. In this context, Saudi Arabia’s participation as a new buyer could lead to structural changes in how Sudanese gold flows to international markets, potentially improving value capture for Sudan while reconfiguring regional geopolitical dynamics.