Dubais rough diamond trade on rise

DUBAI is one of the largest trading centers in the world for rough diamonds. The total trade in rough diamonds in Dubai grew by a record 46.25% in 2005 to $3.734 billion up from $2.553 billion in 2004, according to the Dubai Diamond Exchange (DDE), a subsidiary of the Dubai Multi Commodities Centre (DMCC). Last year, Dubai exported diamonds valued at $2.248 billion while imports for the same period touched $1.484 billion.

�The AGCC countries are the world�s third largest consumer of diamond jewellery after the US and Japan. The considerable growth in Dubais diamond trade assumes greater significance because diamonds are a scarce commodity with falling supply unable to cater to the growing global demand. The price of rough diamonds rose by 25% in 2005," said Dr David Rutledge, Chairman of Dubai Diamond Exchange.

In terms of carat value, imports of rough diamonds stood at almost 37 million carats in 2005, while exports from Dubai reached over 34 million carats, bringing the total volume traded to more than 71 million carats. Dubais major trading partners for rough diamonds include India, Europe, China, and Russia. A leading retailer of diamond jewellery in Bur Dubai told Khaleej Times: �The increase in Dubais rough diamond trade has been enhanced as the demand for diamond jewellery has increased tremendously in the last few years. Along with gold, diamond is also in fashion among all age groups. Moreover, Dubai Diamond Exchange promotes transparency in diamond industry."

At present, the diamond jewellery available in Dubai offers quality, creative designs, wide range of choice and exchangeability options which has also boosted the demand of rough diamonds as more and more jewelers are venturing into diamond jewellery business which is in huge demand in the UAE and region. Noora Jamsheer, chief executive officer of DDE, said: "We are only one of three diamond bourses internationally that conduct B-2-B diamond tenders, enabling sellers to reach a wider market. In 2005 alone, approximately $66 million worth of rough diamonds were tendered at the Dubai Diamond Exchange." Dubai Diamond Exchanges greatest contribution to the industry however, has been in its effort to implement international best practice in the local diamond industry by creating transparent policies, a well established legal framework and a strong regulatory environment.