The United Arab Emirates has emerged as one of the largest diamond trading centers in the world, so that the Emirate of Dubai in particular is attracting tourists from all over the world to visit and buy these small, sparkling treasures.
For wealthy ladies who love the sparkle of diamonds, Dubai in the UAE is an excellent choice where they can buy high quality diamonds at up to 50% cheaper than anywhere else in the world.
Diamonds and precious metals in the UAE are not subject to the 5% value-added tax law, and the UAE's strategic location facilitates the transportation of diamonds from African exporting countries, which means reducing transportation costs.
Dubai..the second capital of diamonds
In recent years, Dubai has turned into the second largest center for diamond trade around the world, as the diamond trade in the Gulf city has grown from $3.5 billion in 2003 to $17.5 billion in 2020.
According to the British newspaper, The Times, Dubai has become a competitor to the Belgian city of Antwerp, which for 600 years has been the most important center of the diamond industry in the world.
The newspaper stated, in a report, that Dubai is close to snatching the title of the diamond trade capital in the world, which Antwerp holds until today.
She explained that there are two variables that occurred last year and combined together to make Dubai ready to seize control of the global diamond trade, namely the outbreak of the Corona pandemic and the conclusion of the peace agreement between the Emirates and "Israel".
She pointed out that the outbreak of the pandemic has disrupted supplies and trade routes between the diamond-producing countries in Africa on the one hand, and the traditional centers of the diamond industry in Belgium and India on the other.
She stated that this made Dubai, whose economic activities were only closed due to the pandemic for a short period, to appear as a vital meeting point between these centers, and a destination closer to Africa and India.
In addition to the proximity of the distance from the diamond mines in Africa, the global diamond trade also needed a destination with low taxes and more flexible laws for import and export, so it found its desire in Dubai.
The British newspaper reported that the signing of the peace agreement with "Israel" brought more visitors and buyers to the already booming stock exchange.
She pointed out that despite the establishment of the Dubai Stock Exchange not long ago, in 2004, it is now the second largest exchange in the world for trading diamonds after the "Antwerp" stock exchange.
Third place in diamond imports
He added that the UAE ranked third in the world in imports of rough diamonds in 2020, while it came second after Belgium in diamond exports during the same year.
In the middle of last year, the Dubai Customs Department announced, in its data, that the value of gold and diamond trade via air freight amounted to $18.2 billion during the period between March and June of the year 2020.
She indicated that the volume of trade in the Emirate of Dubai in gold and diamonds amounted to 601.4 tons in this period, despite the "strict global precautionary measures" taken to limit the spread of the Corona virus, during that period.
The gold and diamond trade distributed about 9.7 billion dollars in imports with a quantity of 428.8 tons, 10.4 billion dollars in transfer within the free zone with a quantity of 877 kilograms, 128.4 million dollars in a quantity of 2.1 tons for re-exports, 8 billion dollars in a quantity of 161.2 tons for export, and 381 million dollars in a quantity 8.3 tons free zone entry.
The most expensive diamond
Last October, the DMCC hosted one of the world's most important diamond tenders.
At that time, the Dubai Center succeeded in selling the most expensive rough diamond, with a value of $5.2 million.
The stone weighs 118.58 carats and was sold for $5.22 million, as part of a record-breaking tender held at the Dubai Diamond Exchange.
The diamond stone was presented to major diamond trading companies from India, Israel and Europe in a tender hosted by the auction house and rough diamonds "Transatlantic Gem Sales".
This comes after a tender organized by Star Gems at the Dubai Diamond Exchange during the month of December 2020, which broke records, as it witnessed sales of rough diamonds worth $87 million.
Dubai aims to become the largest diamond trading center in the world by 2023, replacing Antwerp.
Ahmed bin Sulayem, CEO and CEO of DMCC, told the Emirati newspaper, Al Ittihad: "Dubai is currently ranked second in the world in the diamond trade, with several competitors, such as Antwerp, Mumbai, New York and Hong Kong."
Bin Sulayem revealed the DMCC's ambitious plans to attract international companies working in the diamond sector, with a priority focus on the American market and global centers such as Antwerp in Belgium.
He pointed out that the majority of Dubai's imports of diamonds come from Africa, as well as Canada and Brazil, while Congo, Angola, Botswana and South Africa are the emirate's main export destinations.
Bin Sulayem expected that the number of companies in the DMCC will reach 30,000 companies by 2025, a growth of up to 50% compared to the number of companies currently, which has exceeded 16 thousand companies, 90% of which are new companies on the UAE market.
He continued, "The Dubai Diamond Exchange has made important steps over the past years to reach the global position it currently occupies, including joining the World Federation of Diamond Bourses, heading the United Nations Kimberley Process office and opening a headquarters in Dubai."
Why Emirates?
But what are the reasons that qualified the UAE and Dubai in particular to be one of the most important centers of diamond trading in the world?
The economic specialist, Assem Ahmed, responds to this by saying in his interview with "Al-Khaleej Online": "The geographical location of the UAE is the most important thing that made it a center for the diamond trade, as it mediates between the producing and consuming countries."
He explained that the largest diamond exporting countries are located in Africa, while the largest consuming country is India and China, and thus we see that the UAE is located between these countries and has good relations with everyone, so it has become the most important diamond centers in the world.
He added that Dubai has an attractive investment climate for diamond trade, in addition to the fact that it does not impose value-added tax on it, which makes its trade flourish in the Gulf state; Because its prices will be much cheaper than the rest of the world.
The economist pointed out that the UAE is characterized by the development of infrastructure; Like ports and airports, it has a high level of safety and a market that brings together major international companies, and accordingly it is easy to become the most important diamond trading center in the world.
He pointed out that this trade contributes greatly to the development of the UAE economy and the realization of great financial resources for it. There are hundreds of companies investing in diamonds in Dubai, and the volume of this trade is approaching $20 billion.
And he indicated that this trade generates economic profits for the Emirates indirectly as well, as it attracts hundreds of thousands of buyers and investors annually, and these are wealthy people, and each of them will spend thousands of dollars during his days in the country.
He expected the diamond trade to achieve greater prosperity in the UAE and Dubai, especially in the coming years, to become the first destination for those looking for these precious stones.
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