Saudi Arabia's Strategic Move into Sudan's Gold Market Reshapes Regional Competition

The geopolitical rivalry between Saudi Arabia and the United Arab Emirates has found a new battleground: Sudan’s gold trade. In early 2025, Saudi Arabia intensified its presence in Sudan’s mineral export sector, marking a significant shift in how the country’s precious metal resources are distributed across regional powers.

The Economic Desperation Behind Sudan’s Gold Trade

Sudan faces a severe economic crisis that has made gold revenue absolutely essential for national survival. Official data from the first nine months of 2024 revealed that Sudan exported approximately 10.9 tons of gold, generating $1.05 billion in export value—a lifeline for a nation crippled by civil conflict. However, the scale of losses remains staggering. Industry estimates suggest that roughly 80% of Sudan’s gold production never reaches legitimate export channels, vanishing instead through smuggling networks. This leakage costs Sudan approximately $5 billion annually, a catastrophic hemorrhaging of national wealth that the war-torn nation can ill afford.

How Saudi Arabia Is Challenging UAE’s Market Dominance

For years, the United Arab Emirates held virtual monopoly control over Sudan’s gold exports, serving as the primary destination for the country’s official mineral shipments. However, after Sudan’s military government accused the UAE of interference in its internal civil war and formally severed diplomatic ties, the relationship fractured irreparably. This political rupture opened an unprecedented opportunity.

Sudan’s state-owned mineral resources authority disclosed that the Saudi Gold Refinery Company has signaled its readiness to commence large-scale gold procurement directly from the Sudanese government. While specific transaction volumes and implementation timelines remain undisclosed, and Saudi officials have maintained public silence on the initiative, the strategic intent appears unmistakable.

What This Means for the Gold Rate in Saudi Arabia and Regional Power Dynamics

Market analysts interpret this development as a deliberate intensification of Saudi-UAE tensions, extending their long-standing regional competition into new commercial domains. However, experts caution against overestimating Saudi Arabia’s immediate capacity to supplant the UAE’s entrenched market position. Some observers characterize the move primarily as a political statement—a demonstration of Saudi willingness to capitalize on Sudan’s geopolitical estrangement from the Emirates.

The practical reality remains complex. While Saudi Arabia can certainly acquire Sudan’s gold through its refineries, completely dismantling the UAE’s established infrastructure and trade relationships in the sector would require sustained investment and time. The competitive advantage already built by UAE operators cannot be erased overnight through political declarations alone.

The Structural Transformation Ahead

As Saudi Arabia increases its operational involvement in Sudan’s gold supply chain, the fundamental architecture of Sudan’s mineral export economy is poised for meaningful restructuring. With civil conflict continuing to destabilize Sudan and financial pressures mounting, any diversification of export partnerships could prove beneficial for Sudan’s stability—provided the arrangements generate sufficient revenue capture.

The battle for Sudan’s gold market exemplifies how contemporary geopolitical rivalries extend far beyond traditional diplomatic channels, penetrating deep into commodity markets and economic infrastructure. For Sudan, the competition between Saudi Arabia and UAE represents not just political maneuvering, but a genuine opportunity to reduce its dependency on any single export partner while capturing maximum value from its precious mineral resources.