Saudi Arabia Seeks to Reshape Africa’s Gold Trade, Challenging Dubai’s Influence

Khartoum

Saudi Arabia announced on Monday that it is poised to enter Africa’s gold market in a more assertive way, offering immediate purchases of bullion from Sudan in a move that could diminish long-standing dominance by trading hubs in the United Arab Emirates.

The initiative was outlined during high-level discussions between senior officials from the two countries at the Future Minerals Forum in Riyadh, a summit that drew representatives from more than 100 nations. Sudanese leaders described the agreement as an effort to provide greater transparency and better prices for the country’s gold exports, which had long flowed through markets in Dubai.

Sudan, one of Africa’s largest producers of the precious metal, generated an estimated 70 tons of gold in 2025, though only a fraction of that, about 20 tons, was officially exported, according to Finance Minister Gibril Ibrahim. The gap has reflected persistent challenges with smuggling, opaque trade practices and limited infrastructure for refining and logistics.

Under the new arrangement, Saudi Arabia’s gold refinery infrastructure, equipped with integrated laboratories and a logistics network, is prepared to receive and process Sudanese gold, government officials said. The partnership also includes discussions about expanding exploration and development rights for Saudi firms in other mineral sectors, including talc, mica, chrome and manganese.

Officials in Khartoum and Riyadh described the shift as a way to formalize Sudan’s gold exports and curb illicit trade flows that have cost the nation significant revenue. They also portrayed it as part of a broader effort by African producers to diversify export markets and reduce dependence on a handful of traditional trading partners.

For decades, Dubai has served as a principal hub for African gold, with traders in the Gulf emirate handling a substantial share of the continent’s bullion shipments before re-export to markets in Asia and beyond. The city’s position has been supported by its deep financial networks, extensive logistics infrastructure and strategic location between producing regions and consuming markets.

By establishing a new trading channel in partnership with Saudi Arabia, Sudan and other African producers could see more of the value of their mineral wealth captured locally or through direct state-to-state arrangements, analysts say. While it remains unclear how much market share Saudi buyers might capture from Dubai’s established networks, the move underscores shifting dynamics in global commodities trade.

In a statement, Sudanese officials expressed optimism that the partnership would attract increased investment in mining infrastructure and encourage further cooperation with investors from the Middle East and beyond. Saudi counterparts framed the development as consistent with broader economic diversification goals, which seek to expand the kingdom’s role in global commodity markets beyond oil and petrochemicals.

Still, experts caution that transforming regional trade patterns will take time and depends on improvements in governance, supply chain transparency and competitive pricing, factors that have long shaped the flow of gold from Africa to international markets.