Dubai bling: Billions of dollars worth of African gold is being smuggled into the UAE each year, research finds

DUBAI, United Arab Emirates — Each year, as much as $35 billion worth of gold produced by artisanal and small-scale mining in Africa — the world's top gold producing continent — goes undeclared and then smuggled out of its borders.

The vast majority of it goes to the United Arab Emirates, according to research published by the independent Switzerland-based aid and advocacy organization SwissAid.

"More than 435 tonnes of gold was smuggled out of Africa in 2022, representing more than a tonne a day," the organization's report, published Thursday, wrote. One tonne refers to a metric ton, which is equivalent to 2,204 pounds.

The smuggled 435 metric tons carry a value of $30.7 billion based on gold prices on May 1, 2024, the report detailed, adding: "The overwhelming majority of this gold was imported into the United Arab Emirates (UAE) before being re-exported to other countries."

Most industrial gold exported from African countries goes to South Africa, Switzerland and India. Industrial gold, which makes up roughly 11% of all gold produced, is used in the medical, electronics, automotive, aerospace and defense industries.

But the majority of artisanal and small-scale mining, or ASM, gold produced on the continent — to the tune of 80% to 85% — goes to the UAE, SwissAid wrote.

Across all categories, the top three importing countries for African gold were the UAE, Switzerland and India, with nearly 80% of all of the continent's gold going to those countries in 2022, and with more than 47% going to the UAE alone.

CNBC has contacted the UAE's Ministry of Economy for comment.

In the case of undeclared gold — which is gold that is not reported or declared for export — the vast majority of the precious metal is only declared once it is