Gold Trade Tensions: Saudi Arabia Steps Into Sudan's Market as UAE Influence Wanes

Sudan’s gold reserves represent a critical lifeline for a nation ravaged by civil conflict and financial instability. Yet for years, the United Arab Emirates has maintained a stranglehold on Sudan’s precious metal exports, controlling the flow of the country’s most valuable commodity. This dynamic is shifting. Recent developments indicate that Saudi Arabia is making deliberate moves to capture a portion of Sudan’s gold trade, marking a significant escalation in the regional power struggle between two Gulf powerhouses.

Sudan’s Strategic Pivot: Breaking from UAE Control

The breakdown of Sudan-UAE relations has created an opening for new partners. In 2024, Sudan exported approximately 10.9 tons of gold valued at roughly $1.05 billion, with the vast majority flowing to the UAE. However, Sudan’s accusations of UAE interference in its ongoing civil war prompted the country to sever diplomatic ties last year, leaving Sudanese officials searching for alternative markets. The government has signaled its readiness to work with new trading partners, and Saudi Arabia appears to have answered that call.

Sudan’s state-owned mineral resources company recently disclosed that the Saudi Gold Refinery Company stands prepared to commence large-scale gold purchases from the Sudanese government on an expedited basis. While specific transaction volumes and timelines remain undisclosed, the initiative signals a concrete shift in Sudan’s export strategy away from its historical reliance on UAE channels.

Saudi Arabia’s Calculated Intervention in Regional Trade

The move represents more than mere commercial opportunism—it reflects a broader geopolitical competition between Saudi Arabia and the UAE for influence across the Middle East and Africa. Analysts interpret this gold trade initiative as part of a wider pattern of Saudi Arabia challenging the UAE’s established market positions in developing economies. The development illustrates how Riyadh is increasingly willing to leverage commercial partnerships as tools for expanding regional influence.

This intervention also comes at a critical moment for Sudan, which faces severe financial pressures stemming from the civil conflict. Gold revenues remain essential for the country’s survival, yet the nation loses an estimated $5 billion annually through smuggling operations, with officials estimating that approximately 80% of total gold production escapes through illicit channels.

Competitive Dynamics and Market Implications

Industry observers caution that while Saudi Arabia’s entry into Sudan’s gold market signifies intensified geopolitical rivalry, the kingdom may face practical limitations in completely displacing the UAE’s entrenched position in the near term. Some analysts view the initiative primarily as a political statement—a demonstration of Saudi Arabia’s determination to contest the UAE’s regional dominance rather than an immediate overhaul of Sudan’s trade infrastructure.

Nevertheless, the structural changes in Sudan’s gold exports could reshape regional trade patterns. As Saudi Arabia expands its commercial engagement with Sudan, the country’s precious metal flows may undergo significant redistribution, potentially weakening the UAE’s historic monopoly. For Sudan, access to new buyers offers negotiating leverage and economic diversification, though geopolitical risks remain given the ongoing civil conflict and humanitarian crisis constraining the nation’s stability.