Sudan is trapped in financial pressures: how Saudi Arabia is changing the gold market

Against the backdrop of a prolonged civil war and ongoing financial pressures, Sudan is actively seeking new channels to sell its gold reserves. At the same time, a fierce geopolitical struggle for influence in Sudan’s gold trade has begun, where the traditional dominance of the United Arab Emirates is facing a serious challenge for the first time.

Why Sudan is Changing Partners in Gold Trading

Throughout 2024, Sudan exported approximately 10.9 tons of gold worth $1.05 billion, the vast majority of which went to the UAE. However, strained relations between the two countries have fundamentally changed this situation. The Sudanese government accused the United Arab Emirates of interfering in internal conflicts and severed diplomatic ties.

The state company for Sudanese mineral resources announced that a Saudi gold processing firm négociateur is ready to purchase Sudanese gold through direct government agreements. Although specific volumes and schedules remain uncertain, this step signals deep structural changes in this critically important market for Sudan.

Geopolitical Struggle and Competitive Ambitions

Financial pressures faced by Sudan make gold exports not just a commercial necessity but a material basis for the country’s survival. Saudi Arabia is leveraging this situation to strengthen its position in the Middle East, while simultaneously weakening the influence of the UAE in the region.

Analysts are divided on the success of this strategy. Optimists believe that expanding Saudi presence will fundamentally change Sudan’s dependence on a single partner. Skeptics, however, emphasize that in the short term, Saudi Arabia will not be able to fully replace the central role of the UAE, viewing this move more as a political demonstration of strength.

Scale of Smuggling and Economic Losses

The real threat to Sudan’s budget lies not in geopolitical negotiations but in systemic smuggling. According to official estimates, about 80% of the country’s gold production is illegally circulated, leading to annual losses of $5 billion.

These colossal pressures on public finances make engaging new trading partners not just beneficial but vital. Both Saudi Arabia and the UAE understand that the fight for Sudanese gold is part of a larger regional competition, where control over resources means control over influence.

It is expected that the coming months will be decisive for transforming Sudan’s gold trade amid intensified financial pressures and geopolitical instability.