Sudan’s gold industry is vital to its ongoing conflict, predominantly trading through the UAE, enriching military and paramilitary factions. Despite legal exports generating significant revenue, much of the gold is smuggled, complicating efforts towards peace. A recent case against the UAE highlights tensions over complicity in the conflict, while regulations on gold sourcing face criticism for inadequate enforcement.
In the ongoing conflict in Sudan, the gold industry has emerged as a critical revenue stream, with almost all trade occurring through the United Arab Emirates (UAE). This situation has provided substantial financial benefits to both the national army and paramilitary groups. Despite significant economic hardship resulting from the war, Sudan’s government proudly announced record gold production levels for 2024, indicating a complex and troubling relationship between resource exploitation and conflict.
The demand for Sudan’s gold has been a significant factor in the protraction of the war, according to economist Abdelazim al-Amawy. Marc Ummel, a researcher from Swissaid, emphasized that tracking gold trade leads one to the UAE, underscoring its crucial role in the geopolitical dynamics of the region. A UAE official has denied any allegations related to smuggling or profit from Sudan’s gold trade, asserting that these claims are unfounded.
Sudanese officials, however, assert that nearly all gold production is funneled to the UAE via both legal and illicit channels. Reports indicate that Sudan’s gold output reached 64 tonnes in 2024, generating over $1.5 billion in legal exports. However, a substantial portion of this production is reportedly smuggled, with the SMRC’s director noting that nearly half of the gold never enters formal trade channels.
The paramilitary Rapid Support Forces control gold mines located near Sudan’s borders with South Sudan and the Central African Republic, with much of their output being smuggled into Chad and Egypt before reaching the UAE. Recently, Sudan filed a case against the UAE at the International Court of Justice, alleging complicity in genocide, which the UAE has dismissed as a superficial move. Despite these tensions, the UAE remains integral to Sudan’s wartime gold trade.
Data indicates that 90 percent of Sudan’s legal gold exports head to the UAE, although the Sudanese government is exploring new markets in Qatar and Turkey. The Kush mine, located strategically between Port Sudan and Khartoum, serves as a central hub for gold production, and despite wartime interruptions, it has resumed significant output under Emirati ownership.
As of 2023, the UAE has established itself as the world’s second-largest gold exporter, ahead of Britain, and has become a primary destination for smuggled African gold. Although Abu Dhabi promotes a “responsible gold sourcing policy,” concerns have been raised regarding its actual implementation. Research reveals discrepancies in gold import data, suggesting undeclared gold flows into the UAE from neighboring countries like Chad.
Despite claims of regulatory frameworks meant to enhance due diligence, observers like Ummel argue that the UAE fails to enforce essential controls, thereby continuing to finance armed conflict through illicit gold trading. Sudanese entities, particularly those linked to the RSF, have capitalized on gold mining to fund their military operations, with estimates suggesting annual earnings could exceed $1 billion. This troubling dynamic highlights the intersection of resource wealth and prolonged conflict within Sudan.
In summary, the ongoing conflict in Sudan has turned its gold industry into a vital economic lifeline, primarily benefiting both the national army and paramilitaries through trade routed largely through the UAE. Despite international scrutiny and legal actions against the UAE, the underlying issues of gold smuggling, lack of enforcement of sourcing regulations, and the complicity of various actors continue to sustain the war effort in Sudan. This situation calls for a critical examination of the geopolitical and economic forces at play, impacting peace and stability in the region.
Original Source: www.rfi.fr
