The gold industry in Sudan is booming, but instead of benefiting the people of one of the world’s poorest countries, the precious metal has become the lifeline of the ongoing conflict between the army and paramilitary forces through the United Arab Emirates (UAE).

The war, which began on April 15, 2023, between the Sudanese army led by General Abdel Fattah al-Burhan and the Rapid Support Forces (RSF) commanded by his former deputy, Mohamed Hamdan Dagalo, has devastated the economy of this East African nation.

Despite the conflict, the army-backed government announced record gold exports in February 2024.

The demand for Sudan’s vast gold reserves—long sought after by investors such as the Russian mercenary group Wagner—is “a key factor in prolonging the war,” Sudanese economist Abdelazim al-Amawy told AFP.

“To understand the war in Sudan, you must follow the trail of gold, and it leads us to the United Arab Emirates,” explained Marc Ummel, a researcher with the NGO Swissaid, which monitors African gold smuggling to the Gulf state.

In response to questions from AFP, a UAE official denied the allegations, stating that the country “strongly rejects any unfounded claims regarding the smuggling and exploitation of gold from Sudan during this crisis.”

“The UAE takes the regulation of its gold sector very seriously and will continue to maintain its position as a hub for ethical gold, actively preventing the entry of illicit flows into the market,” the official added.

However, according to Sudanese government sources, the gold industry, and Swissaid documents, the vast majority of Sudan’s gold ends up in the UAE through both legal and illegal trade channels.

A Surge in Gold Smuggling

In February, the Sudan Mineral Resources Company (SMRC), a state-owned enterprise, reported that 64 tons of gold were produced in 2024, compared to 41.8 tons in 2022 before the war.

Although gold exports have brought $1.57 billion to the Sudanese treasury, “nearly half of the production is smuggled across the borders,” said Mohammed Taher, director of SMRC, speaking from Port Sudan.

Approximately 2,000 kilometers away, near the borders of Sudan, South Sudan, and the Central African Republic, gold mines controlled by the RSF continue to expand.

According to industry sources, most of the gold from both warring sides is smuggled to Chad, South Sudan, and Egypt before being exported to the UAE.

In March, Sudan filed a complaint with the International Court of Justice, accusing the UAE of complicity in the “genocide” committed by the RSF in Darfur.

Abu Dhabi dismissed the allegations as a “publicity stunt” and accused the Sudanese army of committing atrocities.

Ironically, the UAE also plays a significant role in bolstering gold production that benefits the army-backed government, providing it with crucial funds to sustain the war effort.

Taher confirmed that 90% of Sudanese gold is exported to the UAE, but the government is also exploring alternative markets such as Qatar and Turkey.

The Kush Mine: A Pillar of Sudan’s Gold Industry

In territory controlled by the Sudanese military, halfway between Port Sudan and Khartoum, the Kush mine stands as a symbol of the government’s gold production.

Although the mine was evacuated at the start of the conflict, it has resumed operations and now produces hundreds of kilograms of gold each month, according to an engineer at the facility. A spokesperson for Emiral, the Dubai-based owner of the mine, confirmed to AFP that “production has resumed on a limited scale.”

On its website, Emiral identifies Kush as one of its key assets through its subsidiary, Alliance for Mining, which it claims is “the largest gold producer in Sudan.”

A source in the gold industry revealed that the company, originally Russian, was “purchased by a UAE investor in 2020 while retaining its Russian management.”

The UAE is the world’s second-largest gold trading hub and the primary destination for smuggled African gold.

Lack of Oversight

Despite official claims of stringent regulations, Ummel argues that “the UAE does not fully enforce its regulations, fails to conduct comprehensive checks, and thus continues to finance the war.”

“The most fundamental issue,” he added, “is ensuring that the gold is declared in the country where it is mined.”

In 2023, Swissaid data revealed that the UAE imported twice as much gold from Chad—a western neighbor of Sudan—as the country’s estimated production capacity, suggesting that much of it came from smuggling.

In Darfur, where the RSF stands accused of genocide, General Dagalo controls highly lucrative gold mines.

According to expert Alex de Waal, Dagalo has built a “transnational mercenary enterprise,” primarily through the family-owned Al Junaid Multi Activities company, which has been sanctioned by both the United States and the European Union.

With a network of up to 50 companies fueled by gold revenues, Dagalo has accumulated enormous wealth that allows him “to acquire weapons, pay salaries, finance media campaigns, and pressure other groups to buy their loyalty,” UN experts reported last year.

Three former Al Junaid engineers estimated the company’s wartime revenues to be at least $1 billion annually.

One engineer reported that the gold mines in South Darfur alone produce at least 150 kilograms of gold per month.

“The gold is transported to an airport in Raga, South Sudan, 200 kilometers from the border, and then flown to Uganda and Kenya before reaching the UAE,” the engineer added anonymously.

As the conflict drags on, the flow of gold through the UAE remains a crucial factor in financing both sides of the war in Sudan.

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