The Sudanese pound has lost nearly 40% of its value following what traders and officials describe as a de facto embargo on flights and shipping between Port Sudan and the United Arab Emirates (UAE)—a move that has severely disrupted Sudan’s vital gold trade.
The Sudanese army, which depends heavily on gold exports to the UAE for hard currency, accuses Abu Dhabi of supporting its rival, the Rapid Support Forces (RSF), in a brutal two-and-a-half-year civil war that has killed tens of thousands and displaced millions. The UAE has denied providing backing to the RSF but relations between the two sides have sharply deteriorated.
According to the Sudanese Civil Aviation Authority and flight-tracking data, the UAE halted all commercial flights from Port Sudan—Sudan’s main gateway for international trade—in early August. Shipping routes between UAE ports and Sudan were also suspended, according to multiple shipping notices and industry sources.
As a result, legal gold exports from army-controlled areas have collapsed, pushing the Sudanese pound from 2,200 to 3,600 per U.S. dollar, according to gold and currency traders. Before the war began in April 2023, the pound traded at around 600 per dollar.
Neither the UAE authorities nor Sudan’s finance ministry have commented publicly on the issue. However, in August, the UAE accused Sudan’s military government of spreading “false accusations and propaganda” without elaborating further.
The currency’s sharp decline underscores Sudan’s deep economic dependence on the UAE, which has been its largest gold trading partner. Central bank data shows that the UAE imported nearly 90% of Sudan’s official gold exports—around 8.8 tonnes worth about $840 million—in the first half of 2025. Gold remains Sudan’s biggest source of foreign revenue, financing key imports such as fuel and wheat. Prices of these essential goods have soared in army-controlled territories since the trade disruption began.
Analysts say both the Sudanese army and the RSF are involved in gold smuggling, which is estimated to be four times greater than the country’s legal production. The UAE is also believed to be the primary destination for smuggled gold.
Sudan’s reliance on the UAE deepened after U.S. sanctions in the late 1990s made international banking difficult. Dubai Islamic Bank holds a major stake in the Bank of Khartoum, while most government transactions pass through the Abu Dhabi branch of El Nilein Bank. The UAE’s advanced gold refining infrastructure and its practice of offering upfront payments have made it indispensable to Sudan’s gold trade.
According to Suliman Baldo, head of the Sudan Transparency and Policy Tracker, Port Sudan authorities have explored alternative markets in Qatar, Oman, Egypt, and Saudi Arabia, but with little success. Instead, much of Sudan’s smuggled gold has been rerouted to Egypt—where it is refined and re-exported to the UAE.
“Egypt is the biggest gainer. Gold gets re-exported in large amounts to the UAE, and all the benefit of the difference goes to Egypt,” Baldo said.
Marc Ummel, a researcher with Swiss NGO Swissaid, added that while some legal exports have been diverted to Qatar and Oman since August, most of that gold ultimately ends up back in the UAE.
Uganda to Hold General Election on January 15 as Museveni Seeks to Extend Nearly 40-Year Rule
Source:Africa Publicity
