Saudi Arabia Plans to Purchase Gold from Sudan, Challenging UAE Dominance

BlockBeats News, January 29th, the geopolitical and economic game between Saudi Arabia and the UAE is extending into the gold trading field. The news stated that Saudi Arabia plans to purchase gold from the war-torn Sudan to weaken the UAE's long-standing dominance in the country's gold exports.

The Sudanese military government has previously mainly exported gold to the UAE. Official data shows that in the first 9 months of 2024, Sudan exported about 10.9 tons of gold, worth $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 officially severed diplomatic ties last year, Sudan is actively seeking new export channels.

The Sudanese state-owned Minerals Resources Company revealed that the Saudi Gold Refinery Company has informed the Sudanese government that they are ready to "immediately start purchasing gold." The scale and timing of the related transactions have not yet been disclosed, and the Saudi officials have not responded.

Analysts pointed out that this move marks a further escalation of tensions between Saudi Arabia and the UAE and may open up a new competitive front at the business level. However, some believe that Saudi Arabia may find it difficult to completely replace the UAE's core position in Sudan's gold trade in the short term, and this move is more of a political statement.

Against the backdrop of ongoing civil war and financial pressure, gold revenue is crucial for Sudan. Officials have estimated that about 80% of the gold production may be lost through smuggling, causing the country to lose up to $5 billion annually. With increased Saudi intervention, Sudan's gold flow may undergo new structural changes.