Dubai’s diamond industry continues its impressive growth trajectory, solidifying its position as a global leader in the diamond trade. According to the Dubai Multi Commodities Centre (DMCC), the total value of rough and polished diamonds traded in the emirate reached a staggering $38.3 billion in 2023. This represents a 2% increase year-on-year and a remarkable 11% compound annual growth rate over the past five years. This achievement is particularly noteworthy considering a global decline in rough diamond prices, highlighting the strength and adaptability of Dubai’s diamond market.
A key driver of this growth is the surging popularity of polished diamonds in Dubai. In 2023, the value of polished diamonds traded in the UAE skyrocketed by an impressive 32% year-on-year to a value of $16.9 billion. This surge has resulted in polished diamonds accounting for nearly half (44%) of the total diamond trade value, almost matching the traditionally dominant rough diamond segment. This shift is further bolstered by the recent opening of a state-of-the-art laboratory by the Gemological Institute of America (GIA) in Dubai. The presence of this prestigious organization strengthens Dubai’s reputation as a reliable and transparent hub for polished diamonds, catering to a growing clientele seeking high-quality gems.
The DMCC, a free zone authority focused on attracting commodities trade to Dubai, has played a pivotal role in this success story. By developing world-class infrastructure, providing streamlined business processes, and fostering a pro-business environment, the DMCC has created an attractive ecosystem for diamond businesses of all sizes. This includes establishing the Dubai Diamond Exchange, a leading diamond trading platform in the region, and offering a wide range of support services to facilitate diamond trade activities.
Dubai’s strategic location also plays a significant role in its diamond trade dominance. Situated at the crossroads of East and West, Dubai offers convenient access to major diamond producing and consuming regions. This, coupled with its excellent air connectivity and advanced logistics facilities, allows Dubai to serve as a key transit point for rough diamonds before they are cut and polished. Additionally, Dubai’s tax-free environment and reputation for security further enhance its attractiveness as a global diamond trading center.
Looking ahead, the future of Dubai’s diamond trade appears bright. The emirate’s commitment to innovation, infrastructure development, and attracting leading industry players is likely to propel further growth. As consumer demand for polished diamonds continues to rise, Dubai is well-positioned to maintain its position as a premier destination for the global diamond industry.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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