Gem traders take a shine to Dubai

Dubai: As the global financial turmoil continues to take its toll, coloured-gemstone makers and dealers from around the world are drifting towards Dubai in the hope of finding new and more stable markets.

More than 100 companies in the coloured stones industry from 20 countries converged on Dubai on Sunday for the International Gem Show 2008, a three-day global fair organised by the International Coloured Gemstone Association (ICA).

Also held under the patronage of the Dubai Multi Commodities Centre (DMCC) and supported by the Middle East GemBureau, the region's first gem show features industry buyers and manufacturers from Australia, Brazil, China, Colombia, France, Germany, India, Japan, Tanzania, Thailand, Turkey, Russia and the United States.

The first two days of the exhibition are dedicated to trade, but consumers will be allowed to see the display of gemstones on the last day between 10am and 9pm.

Exhibitors admitted that the global downtrend has dampened their sales expectations, but show organisers are confident the trade fair will provide a good platform for businessmen to explore new markets.

Gaiti Rabbani, DMCC Executive Director for Coloured Stones and Pearls, said the global downtrend may affect the luxury market, but shopping trends in the Middle East have yet to show signs of slowing down.

"Certainly, the global financial crisis is going to have an impact on the luxury market. But what we're offering people here are new channels of distribution, to enter markets that are probably more economically stable at this time," Rabbani said.

"People here are still buying. The international markets are obviously a lot more conservative when it comes to luxury goods. But the buying power is still here and that's what all these exhibitors are looking for at this stage.

"Obviously they are, to some degree, taking a hit from the international market, but they have to refocus their energies and re-strategise," Rabbani added.

Andrew Cody, ICA President, said Dubai offers a strategic location for gemstone traders to expand their business.

"Being strategically located amid international trade flows, Dubai has emerged as an important centre for precious commodities trade. In addition, the Government of Dubai and DMCC's role in particular in further developing the coloured stones trade, has clearly positioned Dubai as the ideal location for a dedicated trade fair," Cody said in a press statement.

ICA is a non-profit trade body that accounts for over 500 members from 46 countries.