Dubai's DMCC makes a case for new bank to support diamond trading in UAE
Ahmed Bin Sulayem says lack of financing support is 'missing puzzle'
Dubai: Dubai’s DMCC could set up a bank or financial tool to provide financing to the diamond trading industry in the next 10 to 30 months.
Ahmed Bin Sulayem, DMCC’s Executive Chairman and CEO, said that it was “too early” talk about the matter but added that it was the “missing puzzle” in Dubai as it is hard to get finances. “It’s not for profit that we are pushing to support this and if need be even invest ourselves in a bank," he said. "It is really to make sure that the diamond industry and traders do not have an excuse to look outside Dubai or DMCC. It’s going to happen one way or the other.”
DMCC's Dubai Diamond Exchange oversaw Dh91.8 billion worth of transactions in rough diamonds last year. The commodities cluster hosted 19 rough diamonds tenders... and its first one for emeralds. Last year, there was also the UAE’s largest ever rough diamond tender, which took place on the DDE floor, with 379,912 carats of rough diamonds sold, valued at Dh321.29 million.
“As much as it's a market opportunity, it's about the business. Bankers have also done a few studies on the diamond industry and that's within reach today,” said Sulayem. It “is not as mysterious as it used to be before; so I expect to see this, if not, maybe somebody from the crypto world will provide finance. But it's going to happen.”