New Saudi Arabia vs UAE Competition: Sudan's Golden Strategy Changes the Middle East Trade Map

Geopolitical Rivalry Between Saudi Arabia and the United Arab Emirates Enters a New Phase. This time, the battleground is not just diplomacy or energy, but precious metals—specifically, Sudanese gold-rich deposits. Early 2025 marks a crucial moment as Saudi Arabia takes strategic steps to reduce Sudan’s dependence on the UAE’s export routes, which have dominated for years.

Saudi Arabia Moves Quickly to Capture Sudanese Gold Market

According to BlockBeats, Saudi Arabia has identified gold opportunities amid the chaos of Sudan’s ongoing conflict. Saudi Gold Refining Companies have informed the Sudanese government of their willingness to purchase gold directly, creating an alternative export route that benefits a country facing crisis.

This move does not come out of nowhere. For some time, Sudan has relied on the UAE as its main hub for selling gold. From January to September 2024, Sudan exported approximately 10.9 tons of gold worth $1.05 billion, with the majority going to the UAE. However, the situation changed drastically after Sudan officially severed diplomatic ties with the UAE last year, accusing the emirate of meddling in its devastating civil war.

Bilateral Tensions: Why Sudan Is Seeking New Partners

The crisis in Sudan-UAE relations has opened the door for Saudi Arabia. The Sudanese government is actively exploring alternative export channels to safeguard their gold assets from regional dominance by a single actor. With its industrial capabilities and strong geopolitical position, Saudi Arabia sees this as a strategic opportunity to expand economic influence in critical sectors.

There has been no official statement from Saudi officials regarding the scale or timeline of transactions. However, analysts predict that this decision marks an escalation in the competition between the two countries, opening a new economic front previously untouched by their bilateral conflict.

Economic Impact: Gold Losses and Hopes for Recovery

For Sudan, gold is more than just a commodity—it’s an economic backbone. Amid ongoing war and financial chaos, revenue from gold exports is a critical source of foreign exchange. However, the country faces monumental challenges: gold smuggling is estimated to sabotage up to 80% of total production.

As a result, Sudan loses around $5 billion annually from illegal gold sales. With a more structured trading mechanism through Saudi Arabia, Sudan hopes to reduce these losses and stabilize its fragile economy.

Analytical Perspective: Long-term Challenges and Realism

While Saudi Arabia shows commitment, some analysts believe this move is more political than economically transformative in the short term. Replacing the UAE’s entrenched position in Sudan’s gold trade ecosystem requires infrastructure, networks, and trust—all of which cannot be built in just a few months.

Nevertheless, Saudi Arabia’s actions reflect a significant strategic shift. As Saudi engagement increases, the landscape of Sudanese gold trade is experiencing structural changes. Regional gold flow patterns could shift, opening broader economic competition and altering the balance of power in the Middle East.

The question now is whether Saudi Arabia can turn this political will into real economic gains, and how this will influence regional dynamics in the coming years.