UAE Reportedly Receives Smuggled African Gold Worth $35 Billion Annually

By Thea Felicity

May 30, 2024 11:20 AM EDT

Gold Prices Soar to New Record Highs — Experts Say Prices Will Continue to Rise With China as Top Buyer
Gold prices surged to a new all-time high on Thursday, and experts predict they will rise further.
(Photo : Soofia Tailor from Pixabay)

A recent report by SwissAid, shared by CNBC, has uncovered a staggering trend: Each year, an estimated $35 billion worth of gold, predominantly sourced from artisanal and small-scale mining in Africa, is smuggled into the United Arab Emirates (UAE).

The recent discovery revealed a detailed network of illegal activities, indicating that as much as 85% of the gold is illegally transported and ultimately destined for the UAE. SwissAid stated that more than 435 metric tons of gold were smuggled out of Africa in 2022 alone. 

The UAE acts as a central hub where smuggled gold is first transported before being sent to other countries. 

READ MORE: Dubai Properties Allegedly Used by US-Sanctioned Terrorist for Financing, Money Laundering

Illegal Trade of Gold

Despite existing international regulations, weak enforcement and loopholes in re-exporting gold enable illegally obtained gold to become legally recognized. 

This loophole facilitates and perpetuates the illegal trade of gold.

Marc Ummel, head of SwissAid's raw materials unit and co-author of the report, warns of the troubling consequences of this unchecked trade, citing potential links to conflicts and human rights violations. 

This was in line with a recent VCPost, which reported that US-sanctioned terrorists are using the UAE for financing and money laundering. 

SwissAid is now urging authorities to improve controls and transparency measures to stem the tide of smuggled gold and protect the integrity of global gold markets.

READ NEXT: Dubai Airports Recover From Deadly Flood as Passengers Hit 91 Million in 2024

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics