The global gold market could see some significant changes following the massive new discovery in the heart of the Middle East. Saudi Arabia announced about a week ago, the discovery of 8 million ounces of gold over the past year, a move that signals the Kingdom’s intent to transform from an oil giant into a global mining powerhouse.
This discovery comes at a time when gold has performed like never before. In 2025, the metal saw annual gains exceeding 64%, with prices peaking at an eye-watering $4,500 per ounce in December and has continued to about $4,600 January. For established gold-producing nations such as Ghana, this Saudi “gold rush” presents both a challenge and a significant shift in how the world’s most precious metal is traded and refined.
The Global Price Explosion of 2025
The past year was a “perfect storm” for gold prices. Driven by intense geopolitical tensions and a massive scramble by central banks to diversify their reserves, gold’s “upward journey” saw it leap from $2,710 in January to an average of $3,450 for much of the year. It ended the year around $4,500 and currently selling around $4,600 per ounce
For countries like Ghana, which saw its gold export revenues from the small-scale sector alone hit over $10 billion in 2025, these prices have been an economic lifeline. However, the entry of Saudi Arabia as a massive producer could eventually introduce more supply into a market that has been characterized by high demand and record-breaking price ceilings.
The Implications for Ghana and African Exporters
Ghana is currently Africa’s leading gold producer, and a significant portion of its bullion—particularly from the small-scale sector, is traditionally exported to refineries in the Middle East, primarily in Dubai. Saudi Arabia’s new strategy to not just mine, but also refine 36 tonnes of gold annually by 2030, could rewire these established trade routes.
As the Saudi Gold Refinery Co. ramps up its capacity and issues its own international hallmarks, it is positioning itself to compete directly with established hubs like the UAE. Ghana and other African producers may soon find a new, well-funded refinery destination in Riyadh. This competition could offer more options for African exporters but also requires Ghana to accelerate its own value-addition plans to avoid simply feeding a new regional giant with raw ore.
Saudi Arabia’s 2030 Vision: Beyond Oil
Suliman Al-Othaim, Chairman of Saudi Gold Refinery Co., made it clear at the Future Minerals Forum that this is about more than just finding gold; it’s about vertical integration. The company now owns everything from aerial imaging and drilling to the final hallmarked bar. By leveraging heavy government support, the Kingdom is aiming for 50% local production by 2030.
This shift suggests that the Middle East is no longer just a “trading floor” for gold produced in Africa; it is becoming a major competitor on the extraction and processing side as well. For Ghana, the mission remains to maximize the value of its own 2025 boom, where it exported over 100 metric tonnes of small-scale gold, while keeping a close eye on the growing “Golden Shield” in Saudi Arabia.
The global appetite for gold remains at historic highs, but the competition for the title of the world’s most reliable gold hub has just become a lot more intense.
