Guyana Oil Boom Sparks Gold Dynasty’s Power Play

In the shadow of a historic oil boom, a sanctioned gold-trading magnate is mounting an unexpected presidential bid that is sending shockwaves through Guyana’s political establishment and alarming international partners. Azruddin Mohamed, a 38-year-old known for his fleet of luxury supercars and philanthropic gestures in remote indigenous communities, is leveraging his family’s fortune and notoriety to challenge incumbent President Irfaan Ali in the September 1st election. His campaign threatens to destabilize the political landscape of a nation experiencing the world’s fastest economic growth, fueled by massive offshore oil discoveries.

How Could Guyana’s Election Outcome Impact its Oil-Driven Economy?

The core of the concern for international observers and investors is the potential for political instability to disrupt the carefully managed influx of capital. Since Exxon Mobil, in a consortium with China’s CNOOC and Chevron, began production, Guyana’s economy has expanded fivefold. The recent launch of a fourth production vessel has boosted output to 900,000 barrels a day, transforming the nation of 800,000 into a global oil powerhouse on a per capita basis. This boom has triggered an onshore construction frenzy, with new roads and bridges replacing outdated infrastructure, largely built by an influx of Venezuelan migrant labor.

The U.S. government has explicitly warned that a Mohamed victory could jeopardize bilateral relations and repel crucial foreign investment. The Mohameds—Azruddin and his father, Nazar—were sanctioned by the U.S. Treasury in June 2024 for allegedly bribing officials, falsifying customs documents, and evading over $50 million in taxes on more than 10 metric tons of exported gold. While the family acknowledges some tax evasion and expresses a willingness to repay, they deny the broader allegations and claim they are victims of political persecution. This backdrop makes Mohamed’s bid a high-risk gamble for a nation poised to receive an estimated $110 billion in state oil revenue over the next decade.

A Family Empire Forged in Gold

Nazar Mohamed built the family empire from the ground up, starting in the 1980s by personally carrying gold to New York in his suitcase. He expanded the business into a vast conglomerate encompassing mines, currency exchanges, and real estate. Their deep pockets made them significant donors to politicians, including President Ali’s first campaign in 2020. The family’s foray into the oil sector, including a partnership with Exxon on a port project, brought their business practices under intense international scrutiny, leading to the damaging sanctions. Analysts suggest their rapid ascent into the high-stakes energy world ultimately exposed their operations to a level of examination they could not withstand.

A Campaign Built on Charity and Controversy

Undeterred, Azruddin Mohamed has launched the We Invest in Nationhood (WIN) party. He campaigns on a platform of rooting out government corruption and mismanagement, positioning himself as a fresh, unaligned alternative for a country historically divided along ethnic lines. He maintains a massive social media following, larger than the government’s own accounts, which he uses to connect with supporters. His strategy involves courting votes in indigenous communities in the gold-rich hinterland, where he has previously funded housing and healthcare initiatives. However, Guyanese authorities have recently leveled new charges against him, accusing him of drastically undervaluing a imported Lamborghini to avoid taxes, a case he labels as political interference.

The Stakes for Guyana’s Future

The election is now widely seen as a referendum on the country’s future stability and its relationship with international partners. President Ali has framed the vote as a matter of national security, warning that Mohamed’s candidacy puts Guyana’s financial system and international credibility at risk. While polling is scarce, analysts believe Mohamed is unlikely to win a parliamentary majority but could secure enough seats to become a powerful kingmaker, forcing the next government to ally with him. This prospect creates significant uncertainty for the investors and energy companies driving the nation’s unprecedented transformation.

The upcoming vote presents a stark choice for Guyanese citizens: continue with the current administration managing the oil windfall or take a chance on a controversial outsider promising change. The result will determine whether this South American nation secures its place as a stable energy leader or embarks on a far more unpredictable path.

Must Know

What are the U.S. sanctions against the Mohamed family?
The U.S. Treasury sanctioned Azruddin Mohamed, his father Nazar, and three of their companies in 2024 for alleged gold smuggling, bribery of a government official, and tax evasion on over $50 million. The sanctions accuse them of falsifying export documents for more than 10 metric tons of gold.

Why is Guyana’s economy growing so fast?
Guyana is experiencing the world’s fastest economic growth due to a massive offshore oil discovery. A consortium led by Exxon Mobil began production in 2019, and output has rapidly increased to 900,000 barrels per day, generating unprecedented state revenue and fueling a major construction boom.

Who is the current president of Guyana?
Irfaan Ali is the current president of Guyana, representing the People’s Progressive Party/Civic (PPP/C). He was elected in 2020 and is running for re-election in the September 1, 2024, general election.

What is the main issue in the Guyana election?
The main issue is the management of the country’s vast new oil wealth and the integrity of its government. The election pits the incumbent administration against a candidate facing serious international sanctions, making economic stability and international relations a central focus for voters.