Diamond trade between the United Arab Emirates and Israel reached $1.75 billion in 2022, representing a 163% increase over 2021, according to Dubai Multi Commodities Center (DMCC), a leading global free zone and government authority on commodities trade and enterprise.
The increase, reported only a few days in advance of International Diamond Week in Tel Aviv, is illustrative of the consistently deepening relationship between the UAE and Israel since the historic ratification of the Abraham Accords in 2020.
“Over the past two years, we have witnessed strong growth in Israeli companies setting up in our free zone, as they take full advantage of growing their businesses globally and the vertical integration we bring to the category,” said Ahmed Bin Sulayem, DMCC’s executive chairman and CEO. “As the trade relationship grows and matures between Israel and the UAE, we look forward to welcoming more businesses from Israel in diamonds as well as other key sectors.”
The UAE has witnessed soaring growth in the sector over the past three years, with rough diamond trade rising 72% and polished by 50%. Bin Sulayem noted this success, adding that Israel has played a significant part in its accomplishment.
“Dubai, via our Dubai Diamond Exchange, has become the global leader in the diamond trade. This is reflected in the diamond trade numbers with Israel, with $1.75b. traded last year,” he said.
Israeli diamond companies have been operating out of DMCC since the signing of the Abraham Accords in 2020, and in February 2022, the Israel Diamond Exchange opened a representative office in DMCC. Shortly thereafter, in May, Israel and the UAE signed the Comprehensive Economic Partnership Agreement, eliminating tariffs on diamonds and precious stones.
Israeli diamond market expands with Emirati aid
These moves have enabled the Israeli diamond market’s reach to quickly expand, thanks to Dubai’s role as a global business and trade connector.
“The potential with Dubai and with DMCC as a platform for Israeli companies could only develop to a larger scale,” said Israel Export Institute chair Ayelet Nahmias-Verbin at the “Made for Trade Live” event held by DMCC at the Tel Aviv Stock Exchange Conference Center last November.
“As a gateway to India and Africa, we can create with DMCC an infrastructure for joint ventures that will benefit both,” he said.
Israeli Diamond Week is scheduled for March 27-28 and will include the first Israel Diamond Conference as well as the International Diamond Exhibition. Israel will also host the World Diamond Congress, the keystone event organized by the World Federation of Diamond Bourses.