Diamond Trading Is Gaining Popularity Over Gold Trade in Dubai
6/29/2011 4:05:04 AM Shira
The diamond trade in Dubai is gaining popularity over gold trading, according to Malcolm Morris, CEO of Dubai Multi Commodities Centre (DMCC), a commodities-focused free zone owned by the government of Dubai.
Dubai’s diamond trade is booming as a result of increased demands from growing diamond markets like China and India, and new markets like the Congo and Angola. Dubai's diamond trade nearly doubled from 2009 to 2010, reaching over $35 billion and making the city one of the world’s fastest growing diamond centers.
Diamdel, a market supplier of DeBeers which expertise in rough diamond sales and distribution is scheduled to open an office in Dubai in late summer in Dubai's Jumeirah Lakes Towers free zone, making it the first in the Arab world. The free zone is operated by the Dubai Multi Commodities Centre Authority whose subsidiary, Dubai Diamond Exchange, has traded $7.1 billion of rough diamonds.
"We anticipate that this expansion to our global network will offer improved access to the buying opportunities that Diamdel provides, especially to businesses based in India, Dubai and the surrounding markets,” said Neil Ventura, CEO of Diamdel.
In related news, the luxury jeweler Tiffany & Co opened recently opened an additional international headquarter in Dubai— to manage its six stores in the United Arab Emirates— in order to meet the demand of emerging luxury markets.
"Dubai is such a major capital in the world for business and fashion that it was logical for us to be based out here. Being an iconic brand, we wanted to be in an iconic city," said Laurent Cathala, the vice president of emerging markets for Tiffany.
Although the United States is struggling to emerge from a recessionary economic environment, jewelry sales have shot up in other parts of the world. India and Dubai are not only emerging diamond markets, but also one another’s largest direct trading partners. Trading revenue between the two reached over 44 billion USD in the first quarter of this year.
"The achieved growth indicators highlight an economic sustainable growth in Dubai and a clear emphasis on the productive value added sectors in boosting the GDP per capita, luxury and diversify income resources. The growth accompanied all walks related to the direct trade exchange which besides exporting included re-exporting and importing," said Ahmed Butti Ahmed, the Executive Chairman of Ports, Customs and Free Zone Corporation and Dubai Customs Director General.