Dubai’s diamond industry is truly booming as the first quarter ended on a strong note, which clearly shows that the emirate continues to maintain its leading position as a global diamond trading hub.
DMCC reported on Friday that a total of $11 billion (40.4 billion dirhams) worth of rough and polished diamonds were traded in the UAE in the first quarter of this year, up 36% from the same period in 2021.
This significant growth was led by an 80% increase in the value of polished diamonds traded, which reached $4 billion (14.7 billion dirhams) for the quarter.
“After announcing that the UAE had become the world’s largest trading center for rough diamonds at the Dubai Diamond Conference earlier this year, DMCC said it is also growing rapidly in the polished trade” , said Ahmed bin Sulayem, Executive Chairman and Managing Director of DMCC. .
“The 80% increase in the value of polished diamonds traded in the UAE in the first quarter of 2022 clearly demonstrates robust market conditions. Thanks to DMCC’s world-class facilities and services, as well as a hyper-connected business environment, Dubai’s diamond industry is truly thriving at all levels,” Sulayem added.
The growth of polished diamonds demonstrates Dubai’s ability to become a major distribution center for polished diamonds. The crude segment also saw strong growth in the first quarter, with a 20% increase year-on-year to reach $7 billion (25.7 billion dirhams). Trade flows from Africa and Europe accounted for more than 96% of the UAE’s crude trade in the first quarter.
Karim Merchant, CEO and Managing Director of Pure Gold Jewellers, said: “Dubai Diamond is thriving thanks to his leadership vision, proactive measures and strict diamond trade compliance have added to his leadership status. in the world. The sector also benefits from business-friendly policies, ease of doing business and geographic connectivity. »
In line with its mandate to attract, facilitate and generate new trade flows through Dubai, DMCC has played a vital role in establishing the emirate as a global diamond trading hub. DMCC’s Dubai Diamond Exchange is the world’s largest diamond tendering facility and home to over 1,150 diamond companies, providing members and industry professionals with state-of-the-art infrastructure, facilities and services to communicate with confidence.
“Dubai is the world’s largest player and largest trader of rough diamonds and the growth can be attributed to factors such as better KYC/AML procedures and, more importantly, people who trust the reputation of the business and the trade of Dubai Traders and buyers trust the Dubai diamond industry because they know they will get what they pay for and this is very important to maintain its integrity Growth has also come from passing from traditional investment areas to alternative investments such as gold and diamonds.More and more retailers are also seeing a re-emergence of diamond encrusted jewelry as trendy items, which has been slow during the pandemic,” said Nick Patel, founder and director of Bank of Bullion.
Dubai offers direct flights to other diamond hubs around the world, including mining countries in Africa, traders in Israel and manufacturing hubs in India, resulting in a connected supply chain with Dubai in its center. Additionally, Dubai is home to the two Kimberley Process (KP) offices in the United Arab Emirates, making the emirate the only entry point for rough diamonds into the country.
The diamond industry in Dubai has flourished on two fronts, sales of diamond jewelry and the trade in rough and polished diamonds, with the trade in rough and polished diamonds flourishing in the emirate.
“While other countries were under strict pandemic-induced shutdowns, the Dubai market remained largely open and functional. This provided traders in key markets like India, Russia and Africa with a gemstone trade The relative ease of setting up and running a business in the UAE remains a draw for miners, traders and manufacturers looking to set up shop in Dubai. of the diamond can be attributed to the UAE’s successful handling of the Covid-19 pandemic.This is particularly visible in Dubai’s bustling Gold Souk, which is heavily dependent on tourism from Western and Asian markets for the majority of its sales. Tourists from all over the world prefer to buy jewelry in Dubai, due to its wider range and competitive prices,” said Kaushal Jaysukh Bhai Makwana, Managing Director of Aura Gems & Jewe ls.
“The VAT declarations offered to tourists are another main attraction. This makes the United Arab Emirates one of the few duty-free markets in the world to buy jewelry. A resurgence in tourism along with a booming local market supported by an economic renaissance in the United Arab Emirates fueled by a growing population, a record property market and rising crude oil prices have led to an increase in diamond jewelry sales overall,” Makwana added.
The diamond industry has suffered during the Covid-19 crisis due to lockdowns, travel restrictions and economic uncertainty, but it has fared better than the personal luxury market, informs Renu Manjunath, founder of LabelRM, which manages its line of designer costume jewelry, LabelRM.
“Although demand for diamond jewelry has become more localized due to travel restrictions, as the world has opened up, it has returned as consumers continue to view diamond jewelry as a desirable gift and key to marriage. Ongoing surveys show that people intend to spend the same amount or more on diamond jewelry than before the pandemic. This indicates a strong and ongoing emotional connection to the diamond story; Dubai aspires to maintain its position as a city of gold and diamonds and a strategic hub for the trade of these precious goods,” concluded Manjunath.
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