Report reveals majority of gold smuggled from Africa is exported to UAE

The UAE has come under scrutiny for being a major recipient of gold smuggled out of Africa, with allegations of tens of billions of dollars worth of illicit trade in the region’s precious metals. A recent report by Swissaid revealed that about 435 tonnes of gold, valued at $31 billion, were exported undeclared out of Africa in 2022, with the UAE accounting for 93% of these exports.

The surge in gold prices earlier this year has intensified concerns over illegal mining in conflict zones like the Democratic Republic of Congo and Sudan. The Financial Action Task Force has been urged to reconsider the UAE’s removal from its “grey list” of countries due to the significant amount of illegally obtained gold entering the country.

Emirates Gold, one of the UAE’s largest refineries, was suspended from accessing gold markets in Dubai and London last year due to compliance issues. The UAE has implemented new regulations to address concerns around gold smuggling, including due diligence requirements for sourcing gold from artisanal mines.

Despite efforts to regulate the gold trade, concerns remain about the impact on individuals involved in artisanal mining in Africa. The UAE has disputed claims that its acceptance of artisanal and small-scale mining is harmful to these individuals.

The report also highlighted the role of Abu Dhabi-based Primera in combating the smuggling trade in the Democratic Republic of Congo. Armed groups in the region control supply chains, with most DRC gold being smuggled into Rwanda and Uganda before being exported to the UAE.

The UAE official emphasized that the country’s gold refineries must comply with due diligence regulations for responsible sourcing of gold, aligned with international guidelines. The US recently sanctioned a holding company involved in exporting gold for paramilitary forces in Sudan, further highlighting the complex issues surrounding the gold trade in Africa.