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The United Arab Emirates (UAE) is known to bridge the gap between gold-producing and gold-consuming countries, but a weak regulatory system has led the country to import at least 591 tonnes of illicit gold in 2024, a new SWISSAID report shows.
The report used data from 2021 to 2025 and interviewed over 150 stakeholders to get to these findings and recommendations, and better understand the UAE’s role in the global gold market.
Despite tighter regulations introduced in 2023 to promote a greater due diligence regarding imports and exports, massive quantities of illicit gold continue to be imported into the country, the report found.
Illicit gold includes the metal that was either smuggled to the UAE without traceability or produced in countries with ongoing conflicts, including Russia, Yemen and Sudan. SWISSAID said the findings are important to the Swiss industry, as it is the main importer of gold from the UAE.
“The findings of this study are deeply concerning,’ Head of SWISSAID’s raw materials unit, Marc Ummel said. “They show that the United Arab Emirates remains a hub for smuggled and conflict gold.”
The 591 tonnes of illicit gold imported by the UAE in 2024 would be worth $74 billion at current prices. It included 453 tonnes coming from African producing countries, and about 137 tonnes coming from countries subject to international sanctions. This represents 42% of total gold imports into the UAE in 2024.
Regulatory shortcomings
The UAE became a top destination for gold production due to its business-friendly regulation and weaker due diligence requirements and penalties for non-compliance, but that also opened up the door to issues regarding illicit producers.
Still, the country has made strides to create tighter due diligence requirements for gold sourcing with new regulation being introduced in 2023. The goal was to increase gold traceability and control, but that is still not the reality.
Out of the 52 Emirati refineries that were reviewed for their 2023 to 2025 production, only two were fully adopting the new regulations, the report showed.
Refineries still have a weak traceability system, receive gold from intermediaries, fail to conduct due diligence and site visits and seem to be regressing on regulation rather than enforcing the new one.
The new regulations have increased transparency on how due diligence is performed in Emirati refineries, but it still isn’t enough to improve poor due diligence, especially when it comes to illicit gold, according to the report.
What comes next
In light of the results of their study, SWISSAID is asking the UAE to better apply its regulations so due diligence can actually be performed by refineries and gold traceability can increase for importers.
It recommended that the Financial Action Task Force (FATF) put the UAE back on its list of jurisdictions with strategic deficiencies in combating money laundering and the financing of terrorism.
It also asked that penalties for non-compliance should be increased or made public, for Emirati companies to share the names of their suppliers of mined gold and for the Emirati customs authorities to increase their controls.
While the UAE is the top destination for gold linked to armed conflicts globally, SWISSAID said those conflicted affected areas shouldn’t be completely shut out from imports, as it would hurt the industry and legitimate miners in the region. The non-profit said that with proper due diligence on UAE’s part, those areas can still be a great source and help combat illicit gold.
Switzerland is the top importer of gold from the UAE, having imported 420 tonnes of gold in 2024, and has already imported over 400 tonnes of gold from the country in 2026.