Gold gifting has been a tradition since the very first Christmas, and Dubai’s Gold Souk stands out as one of the best places to buy it. Renowned as the world’s largest and most affordable gold market, it has attracted bargain hunters for over a century. Merchants from India and Iran began trading precious metals near Dubai Creek in the early 1900s, and today, more than 500 stores line the narrow alleys of the souk, offering a variety of items, from pearls and platinum rings to gold jewelry, coins, and bars.
As the festive season approaches, gold sales surge, with tourists flocking to Dubai to purchase jewelry and bullion. However, this holiday tradition casts a shadow. Behind the glittering surface of Dubai’s Gold Souk lies a darker reality: the UAE’s significant role in the global trade of illicit gold, much of it fueling violent conflicts across Africa.
The War in Sudan and Gold’s Role
Sudan, embroiled in a brutal civil war since April 2023, has become a key player in the illicit gold trade. Gold is now the primary currency of the conflict, with both sides—the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF)—relying heavily on gold to fund their military operations. This year, Sudan’s official gold exports generated $1.5 billion in revenue, almost all of which was sent to the UAE. However, a significant portion of Sudan’s gold is smuggled, often bypassing official channels and landing in Dubai’s markets. According to experts, as much as 80% of Sudan’s gold is illegally exported, with the UAE being the main destination.
But Sudan is not alone. The UAE has also been accused of laundering gold from several other African nations, including the Central African Republic, Mali, and the Democratic Republic of the Congo. A 2023 report by the NGO Swissaid revealed that around 40% of all African gold exports are undeclared, with 93% of this going to the UAE. The UAE’s role in the gold trade is further complicated by its alleged involvement with Russia’s Wagner militia, which has reportedly smuggled billions of dollars’ worth of African gold to fund Russia’s invasion of Ukraine.
The UAE’s Complicity
The UAE’s involvement in illicit gold trade and its questionable role in conflicts such as Sudan’s have been subjects of ongoing scrutiny. In 2016, reports revealed that the UAE had declared gold imports worth $7.4 billion from 25 African countries—countries that had not reported any exports to the UAE. The lack of transparency surrounding these transactions makes it difficult to trace the origin of gold entering Dubai, which means consumers in the U.S. and elsewhere may unknowingly be supporting conflict through their purchases.
Despite these revelations, the international community has done little to address the situation. The UAE’s political stance—especially its support for Israel amid the Gaza conflict—has earned it diplomatic cover, with key allies such as the U.S. reluctant to take strong action. This apathy leaves consumers with little recourse when it comes to ensuring that the gold they purchase is ethically sourced.
The Impact on Sudan
Sudan’s conflict has taken a devastating toll. Over 20,000 people have been killed, and millions more have been displaced, both internally and across borders. The fighting is primarily between the Sudanese Armed Forces, led by Abdel Fattah al-Burhan, and the RSF, led by Mohamed Hamdan Dagalo. Tensions have been brewing for years, but the 2021 coup by al-Burhan ignited widespread violence. The RSF, originally formed from the Janjaweed militia, has been accused of committing atrocities, including ethnic cleansing, particularly in Darfur.
The UAE has denied supporting the RSF, but leaked documents and reports from UN sanctions monitors suggest otherwise. The UAE is suspected of providing financial, military, and logistical support to the RSF, including arms shipments routed through trafficking networks. The UAE’s alleged involvement in Sudan’s civil war is a troubling extension of its efforts to expand its influence across Africa, driven by the country’s need for resources like gold and land.
The UAE’s Role in Africa’s Future
As the UAE imports 90% of its food supply, securing access to resources like Sudan’s agricultural land has become a strategic priority. UAE firms have invested heavily in Sudanese farmland, and the ongoing war threatens both the country’s agricultural output and its role as Africa’s breadbasket. The UAE’s interest in Sudan, however, goes beyond food security. Gold and other resources have become vital to the UAE’s economic ambitions, making Sudan a critical player in the region’s geopolitics.
Ethical Dilemmas for Consumers
As Christmas approaches, many people will consider gifting gold—an attractive, long-standing tradition. However, consumers should be aware that their purchases might be indirectly fueling violence and war. Gold, once celebrated as a symbol of prosperity and joy, now carries with it the heavy burden of conflict.
Fahad Khan, a long-time vendor at Dubai’s Gold Souk, explains the appeal of gold: “People can walk around with gold in their hand, and nobody will bother you.” But behind the allure of a shiny gift lies a complex and troubling global trade that, in many cases, supports violence and human suffering. While gold continues to be a top commodity in Dubai, and a popular holiday gift, the question remains: can consumers reconcile their desire for gold with its darker side?
As Kholood Khair, a Sudanese policy analyst, succinctly put it: “Sudan’s war chests are full of gold.” This Christmas, while many will enjoy giving and receiving gold, the ethical implications of these transactions are more important than ever.
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