The tug of war among Gulf countries regarding Sudan’s gold has intensified. There is a geopolitical tussle between Saudi Arabia and the United Arab Emirates (UAE) over control of this precious metal. Saudi Arabia has officially announced on 29 January 2026 to buy gold directly from Sudan and process it in its refinery, posing a direct challenge to the UAE’s long-standing dominance.
Also read this news: Gaza Rafah Border Reopen: Israel opens Rafah Border after 2 years, only these people will be allowed to go.
Why did the dispute increase between Saudi Arabia and UAE?
Historically about 90% of Sudan’s official gold was sent to Dubai. In the first 9 months of the year 2024 alone, Sudan had sent gold worth $1.05 billion to UAE. However, now the situation is changing as Sudan’s military government (SAF) has accused UAE of helping the opposition group RSF.
Due to this diplomatic dispute, Sudan has started shifting its business from UAE to Saudi Arabia. Saudi Arabia’s refineries have issued an official statement saying that they are ready to process any quantity of gold coming from Sudan. Egypt and Saudi Arabia have also increased surveillance on the routes which were earlier used for supplies.
Gold smuggling and loss to the government treasury
Gold production in Sudan is very high, but it appears low in government statistics. According to official data the situation is as follows:
Sudan’s total gold production in 2025 will be around 70 tonnes. Of this, only 20 tonnes were shown as exported in government records. The remaining 50 tonnes i.e. about 80% of the gold went out through illegal routes. This smuggling causes a loss of about 5 billion dollars (Rs 41,000 crore) to the Sudanese government every year.
How cheap is Sudan’s gold compared to India?
There is a big difference between the gold prices of Indian market and Sudan. According to data as of February 1, 2026, gold rates in Sudan are much lower than India. There gold is becoming cheaper by about Rs 1,39,927 per kg compared to India.
The price of 24 carat gold in Sudan varies in local currency, but when converted into Indian Rupees it seems quite affordable. After the new agreement reached in the Future Minerals Forum of Saudi Arabia, now there is hope that smuggling will stop and this gold will come to the market through the right path.
