The UAE is becoming a central hub for the world’s diamond trade. The country’s Minister of Economy announced recently that the rough diamond trade in the country reached $25.6 billion in 2015.
The rough diamond trade has in the previous years focused on the areas of Antwerp, Tel Aviv and New York, with 8 out of 10 of all diamonds passing through Antwerp. The diamond sector of the Belgian city has an annual turnover of around $39 billion, but it seems new regions are beginning to catch up.
Sultan bin Saeed Al Mansouri, UAE Minister of Economy, released the country’s trading figures for 2015. The figures show the country imported $12.4 billion worth of rough diamonds. Furthermore, it re-exported around $13 billion worth of rough diamonds, totaling in trade value of $25.6 billion.
Selected as the chair of the Kimberley Process
The country’s position within the diamond trade industry is strengthened by its selection to be the chair of the Kimberley Process for the year. The Kimberley Process is a worldwide body, helping member nations to trade diamonds in a safe and stable environment. In many cases, foreign transactions are placed using automated forex strategies that can also be used in building speculative positions.
UAE was the first Arab nation to join the body in 2003, with the Dubai diamond trade increasing its recognition as a global hub after the membership.
Clouds around the diamond sector
However, the overall health of the diamond trade isn’t looking as upbeat. The sector suffers from oversupply, with the demand suffering consequently. Furthermore, slower retail interest from China has driven down the trading prices. During the Chinese New Year period, the country’s biggest jewelry retailer Chow Tai Fook reported a 20% drop in demand for processed diamonds.
Yet, buoyant American markets might come to the rescue of UAE traders and diamond mining companies. According to one of the biggest diamond mining companies De Beers, American consumers continue to stay in love with the ‘girl’s best friend’.