Dubai's rough diamond trade increases 17%

Imports of rough diamonds into Dubai increased by 26 per cent to $937 million between January and June.

Dubai's rough diamond trade grew 17 per cent to $2.24 billion in the first half of this year compared with the same period in 2006 as the city of gold tries to build its reputation in the global diamond industry.

Imports of rough diamonds into Dubai increased by 26 per cent to $937 million between January and June, while exports were valued about $1.3 billion, a growth of 12 per cent, according to the Dubai Diamond Exchange (DDE).

In carat value, a total of 43.6 million carats were traded in the first half of 2007 compared with 39.8 million during the first half of 2006, said the DDE, a subsidiary of the Dubai Multi Commodities Centre (DMCC).

"The local rough diamond market has continued to witness significant growth. We are also witnessing a considerable growth in direct imports from leading mining countries like Russia and Angola, which clearly point to Dubai's rapid emergence as a global centre for the trade in rough diamonds," Ahmad Bin Sulayem, executive chairman of DMCC, said in a statement.

Roughly 65 per cent of the world's diamonds are mined in Africa. Dubai's major trading partners for rough diamonds include India, Europe, China, and Russia.

The total trade in rough diamonds in Dubai reached $3.93 billion for the whole of 2006, up from $3.73 billion in 2005.

Dubai's rough diamond trade had a record growth of 46 per cent in 2005 but has been slowing since then as the market matures.

Youri Steverlynck, chief executive officer of DDE, said the trade is improving through value-addition activities in the emirate.

"We are seeing a significant movement from transit trade through Dubai to local trade. In keeping with our mandate to grow the trade further, the DDE is continuously on the lookout for opportunities to facilitate the trade," he said.

As part of such efforts, the valuable cargo customs clearance office at Dubai International Airport recently extended its work week from five days to six days. It has also extended daily work by 9 hours and opens for 17 hours starting 7am.

"This new service will offer faster turnaround time for traders dealing in rough diamonds," the DDE said.
Source: gulfnews