Sudan’s Gold Fuels War as Smuggling Thrives Through UAE

Sudan’s gold industry has become a crucial financial engine for its ongoing war, with nearly all of its trade funneled through the United Arab Emirates (UAE), benefiting both the army and paramilitary forces, according to officials and NGOs.

    Sign up for the Nigerian Mining Weekly Newsletter
    Get the latest news from the Nigerian solid minerals and mining industry delivered to your inbox.

    Despite the devastating toll of the two-year conflict on Sudan’s economy, the army-backed government announced record gold production in 2024. Experts argue that soaring demand for Sudanese gold is prolonging the war, with economist Abdelazim al-Amawy stating, “To solve the war in Sudan, we have to follow the gold, and we arrive at the UAE.”

    A UAE official rejected allegations of gold smuggling or profiteering, but research by development group Swissaid, as well as Sudanese officials and mining insiders, confirms that most of Sudan’s gold ends up in the UAE—via legal trade, smuggling routes, or Emirati ownership of key mines.

    In February, the Sudan Mineral Resources Company (SMRC) reported gold production of 64 tonnes in 2024, up from 41.8 tonnes in 2022. Legal exports brought in $1.57 billion, but SMRC director Mohammed Taher estimated that nearly half of the country’s output is smuggled across borders.

    Sudan’s Gold Fuels War as Smuggling Thrives Through UAE

    Mines controlled by the paramilitary Rapid Support Forces (RSF) in Sudan’s border regions with South Sudan and the Central African Republic contribute significantly to the illicit trade. Much of this gold is trafficked through Chad, South Sudan, and Egypt before reaching the UAE.

    Sudan recently filed a case against the UAE at the International Court of Justice, accusing it of complicity in genocide committed by the RSF in Darfur. Abu Dhabi dismissed the case as a “publicity stunt” and denied arming the RSF.

    However, the UAE plays a significant role in Sudan’s gold sector, indirectly funding the government’s war effort. According to Taher, 90% of Sudan’s official gold exports go to the UAE, though the government is now exploring alternatives such as Qatar and Turkey.

    A key example is Sudan’s Kush mine, a major gold production site located between Port Sudan and Khartoum. Originally evacuated at the war’s onset, it is now operational again, producing hundreds of kilograms of gold monthly. The mine is owned by Dubai-based Emiral Resources, which also controls Alliance for Mining, Sudan’s largest industrial gold producer. Sources suggest that an Emirati investor acquired the mine in 2020 while retaining Russian management.

    UAE’s Gold Boom During Conflict

    The UAE became the world’s second-largest gold exporter in 2023, surpassing Britain. Despite Abu Dhabi’s claims of enforcing “responsible gold sourcing” regulations, analysts argue that its policies are not effectively implemented.

    Swissaid data reveals that UAE gold imports from Chad in 2023 were more than twice Chad’s estimated production capacity, indicating large-scale smuggling. “If UAE regulations were truly enforced, all refineries would verify that gold was legally declared in its country of origin,” said researcher Marc Ummel.

    RSF commander Mohamed Hamdan Daglo has controlled gold mines in Darfur for years, using them to establish what Sudan expert Alex de Waal calls a “private transnational mercenary enterprise.” His family’s company, Al-Junaid Multi Activities Co., has been sanctioned by both the U.S. and the EU.

    A UN report found that Daglo’s vast gold wealth, funneled through a network of up to 50 companies, has funded arms purchases and sustained his war effort. Three former Al-Junaid engineers estimated the RSF’s wartime gold revenues at a minimum of $1 billion annually.

    One former engineer detailed how at least 150 kilogrammes of gold per month from Darfur’s southern border is transported first to South Sudan, then flown to Uganda and Kenya, before finally reaching the UAE.

    Despite international scrutiny, Ummel argues that the UAE’s gold sector remains deeply linked to Sudan’s war. “They are not implementing their regulations, they don’t conduct necessary checks, and ultimately, they are continuing to fund the war,” he said.

      Sign up for the Nigerian Mining Weekly Newsletter
      Get the latest news from the Nigerian solid minerals and mining industry delivered to your inbox.

      Leave a Reply

      Your email address will not be published. Required fields are marked *

      You May Also Like

      Nigeria’s Ministry of Solid Minerals Development Unveils Roadmap for Mining Sector Growth

      The Nigerian Ministry of Solid Minerals Development (MSMD) has unveiled a comprehensive…

      Mali Tightens Mining Regulations Over Rising Artisanal Gold Mining Accidents

      The Malian government has introduced stricter regulations on gold mining in response…

      Miners Urge Edo State Governor Monday Okpebholo to Address Double Taxation and Insecurity in Mining Sector

      The Edo State chapter of the Miners Association of Nigeria (MAN) has…

      Proposed Deep-Sea Mining Regulations Spark Intense Global Debate

      After over a decade of discussions, the International Seabed Authority (ISA) is…