Sudan's Money Troubles: How a Flight Ban Hit the Gold Trade

Sudan finds itself in a challenging economic situation. The Sudanese pound has significantly lost value following the suspension of flights from Port Sudan to the United Arab Emirates (UAE). The UAE plays a crucial role in Sudan's economy, particularly in the gold trade, which is a vital source of revenue for Sudan.

The UAE: A Best Friend Turned Rival

The Sudanese army accuses the UAE of supporting the Rapid Support Forces (RSF), a group opposing them. Although the UAE denies these allegations, the strained relationship between the two nations is exacerbating Sudan's economic woes.

The Impact on the Sudanese Pound

The suspension of flights has severely impacted the value of the Sudanese pound. The gold trade, a significant contributor to Sudan's economy, is suffering. Without the UAE as a major buyer, Sudan is struggling to maintain its economic stability.

The UAE's Role in the Gold Trade

The UAE is a major player in the global gold trade, serving as the second-largest gold trading hub in the world. Sudan heavily relies on the UAE to purchase its gold. The absence of this trade has made it difficult for Sudan to afford essential imports like fuel and wheat, with prices skyrocketing since August.

Sudan's Search for Alternatives

Sudan has been exploring other trading partners, including Qatar, Oman, Egypt, and Saudi Arabia. However, these efforts have not yielded significant results. The UAE embargo has led to increased gold smuggling into Egypt, but much of it still ends up in the UAE.

The UAE's Advantages

The UAE's superior gold refining capacity and advanced payment options make it an attractive trading partner for Sudan. Despite the current challenges, Sudan remains dependent on the UAE for its gold trade, making it difficult to foresee immediate improvements in the situation.