Sudan’s gold industry, crucial for its wartime economy, is primarily channeled through the UAE, benefiting both the military and paramilitary organizations. Although the government reports record production levels, nearly half of gold is smuggled abroad. The UAE faces accusations of complicity in Sudan’s conflict, while data suggests insufficient regulation of the gold trade, continuing to fuel the war.
Sudan’s gold industry has become a critical resource during the ongoing conflict, with an overwhelming majority of its trade routed through the United Arab Emirates (UAE), benefiting both the national army and various paramilitary factions, as reported by international and non-governmental organizations. Despite the disastrous impact the two-year conflict has had on Sudan’s economy, the army-backed government recently announced record production levels, projecting 64 tonnes for 2024, a significant increase from 41.8 tonnes in 2022.
According to Sudanese economist Abdelazim al-Amawy, the demand for gold has significantly influenced the duration of the war. Marc Ummel, a researcher at Swissaid, emphasizes that tracing gold resources shows a direct connection to the UAE. A UAE official has dismissed allegations of gold smuggling and profits from these activities as baseless. Nonetheless, Sudanese officials and research point out that a substantial portion, nearly half, of the gold production is smuggled rather than formally exported.
Many mines operated by the paramilitary Rapid Support Forces lie nearly 1,200 miles away on Sudan’s borders, with gold often smuggled to countries like Chad and South Sudan before eventually reaching the UAE. Sudan initiated a case against the UAE at the International Court of Justice, accusing it of complicity in genocide by the RSF in Darfur, a claim the UAE has termed a publicity stunt. Still, the UAE is reportedly a significant contributor to Sudan’s gold trade, as it receives 90% of the country’s legal gold exports.
Within territory controlled by the army, the Kush mine has resumed operations and is now a key player in the gold trade, producing substantial quantities monthly. The mine is owned by Emiral Resources, a Dubai-based company that lists Kush as one of its key assets. In 2023, the UAE surpassed Britain to become the world’s second-largest gold exporter and the primary destination for smuggled gold from Africa, despite efforts to promote responsible sourcing.
Despite the UAE’s claims of enforcing a responsible gold sourcing policy, observers question the efficacy of these regulations. Evidence suggests that gold imports exceed capacity forecasts, indicating large volumes may be undeclared and smuggled. Mohamad Hamdan Daglo, a commander of the RSF, has leveraged control over gold mines to create a lucrative mercenary enterprise backed by a network of companies, further complicating the landscape. This operation is estimated to generate at least $1 billion annually, with significant portions of gold produced in Darfur being sent abroad to ultimately arrive in the UAE. Ummel observes that the UAE’s regulatory implementation appears insufficient, allowing for ongoing funding of warfare in the region.
The ongoing conflict in Sudan is intricately linked to the lucrative gold trade, predominantly funneled through the UAE. Despite claims of responsible sourcing, significant volumes of gold remain smuggled, underpinning the war effort on both sides. The situation underscores the complexities surrounding international trade, conflict, and governance as Sudan seeks stability amidst economic turmoil.
Original Source: www.rfi.fr
