Saudi Arabia is set to become a significant player in the African gold market, initiating direct gold purchases from Sudan. This move promises to reshape Khartoum’s gold export strategy, which historically depended on Dubai for decades.
Why is Saudi Arabia interested in Sudan’s gold?
Sudanese officials anticipate that this new partnership will foster a more transparent, secure, and profitable system for managing the nation’s gold reserves. The announcement followed discussions in Riyadh between Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and Sudan’s Minister of Minerals Nour al-Dayem Taha. These talks occurred during the fifth Future Minerals Forum, an international event with participants from over 100 countries.
What did the ministers discuss?
The ministers explored opportunities to strengthen collaboration, increase mutual investments, and harmonize their mining sectors to stimulate economic expansion in both countries.
How did Dubai become a gold hub?
Dubai’s dominance in gold trading with Africa solidified in the late 20th century. Its strategic geographic location, business-friendly regulations, and advanced infrastructure established it as a key hub for refining and exporting gold from African nations.
Is this Saudi Arabia’s first foray into African gold?
Saudi Arabia’s interest in African gold is not entirely new. In 2020, the Saudi Geological Survey identified substantial gold reserves within Saudi Arabia and signaled intentions to acquire mining assets in Africa, revealing a broader strategic ambition to establish itself as a major player in the global gold market.
