Dubai rough diamond trade up 36%

Dubai: Dubai's total trade of rough diamonds increased by 36 per cent to reach $3.03 billion at the end of the first six months of 2008, Dubai Diamond Exchange (DDE) - a subsidiary of the Dubai Multi Commodities Centre (DMCC) - said in a statement on Saturday.

During the first six months of 2008, rough diamond imports grew 23 per cent to $1.15 billion from $937 million during the same period in 2007. This was mainly driven by high volumes imported from Angola (75 per cent) and a 138 per cent rise in imports from China.

Exports in the first half of 2008 rose 44 per cent to $1.88 billion from $1.3 billion during the same period in 2007. Over 87 per cent of Dubai's rough diamond exports were to the countries of the European Union (EU) and India, while Dubai's exports to China increased by 950 per cent.

Angola, India, the EU and China were the top diamond trade partners for Dubai, and jointly accounted for around 85 per cent of the trade volumes.

"The surge in diamond trade is testament to Dubai's success in attracting traders from around the world. We have witnessed healthy growth in bilateral trade with various countries, reflecting the growing confidence in the trading infrastructure and opportunities offered by Dubai," said Ahmad Bin Sulayem, executive chairman of DMCC and deputy chairman of DDE.

Earlier this year, DMCC signed deals with the People's Government of Panyu District, China, and Gems and Jewellery Trade Association of China (GAC), to promote the jewellery trade between the countries, with a special focus on diamonds and coloured stones. In addition, DMCC assisted HSBC establish a diamond banking unit to enable access to finance for the local and regional diamond trade.

"While exports in terms of carats grew marginally in the first half of 2008, the price of diamonds rose 10 per cent and helped push the overall trade to high levels. We have also been witnessing a sharp increase in rough diamond inventories held in Dubai, which underlines Dubai's status as a major distribution conduit for leading manufacturing markets," said Youri Steverlynck, chief executive officer of Dubai Diamond Exchange.

DDE plans to hold rough diamond sales every month, starting from August 24.