Gulf demand will drive Rosy Blue's 2008 sales

Dubai: Diamond giant Rosy Blue said yesterday the outlook for diamond sales in 2008 was very positive, driven by continuing strong demand in the key Gulf Arab market.

"We are extremely bullish about the diamond industry in the Gulf region, and particularly the United Arab Emirates," chairman Harshad Mehta told Reuters in an interview.

"We are planning to increase our presence in the Gulf market ... which we see as a major sales centre because of higher oil prices and growth in tourism."

The Belgian-based diamond merchant said sales last year totalled $120 million, up 57.9 per cent from 2006.

It expects this year's sales to surge to $250 million.

US downturn

A steep downturn in the United States, the world's biggest diamond jewellery market, could dampen sales there for cheaper products, but healthy demand was set to continue in China, India and the Middle East.

In Dubai, traders said they expect robust diamond jewellery demand on soaring disposable incomes triggered by booming crude oil prices - and flamboyant tastes.

In the malls and souqs, and on Al Maktoum Street - Dubai's equivalent to Old Bond Street in London - visitors said they preferred to buy pieces with diamonds, regardless of the price.

"We are seeing this trend as people have started realising the [different] aspects of diamonds," Mehta said.

"Also, the different price points that diamonds can be available in, has made people realise that diamonds are not 'expensive' but can offer a value for their money."