In Pictures: UAE-Israel accord could bring new sparkle to Dubai diamond trade

A diamond dealer working for Stargems sorts uncut stones at Dubai Diamond Exchange in Dubai. The week that Israel and the United Arab Emirates normalised ties, Israeli diamond trader Zvi Shimshi headed to the United Arab Emirates to open a company in Dubai, a regional trade hub that is a major centre for the precious stones.

He is among 38 Israelis whom the Dubai Multi Commodities Centre (DMCC), home to Dubai Diamond Exchange, said have recently contacted it to set up a presence, in a sign of how shifting regional politics could alter global trade dynamics. Above, a buyer inspects a diamond at Rapaport Auctions in the Dubai Diamond Exchange in Dubai.

Traders in Dubai say they have been inundated with enquiries from Israelis, who traditionally trade in Belgium's Antwerp -- the world's biggest centre for traders of rough and polished diamonds. Above, a technician inspects a diamond while polishing a stone at Almas Diamond Services.

A 14-carat diamond is seen at Almas Diamond Services in the Dubai Diamond Exchange.

South African company Trans Atlantic Gems Sales (TAGS), which auctions and tenders diamonds in Dubai, had close to 50 Israeli firms interested in participating in tenders register with the company in just a few weeks, said owner Anthony Peters.

Dubai, with $21.2 billion in diamonds traded last year according to DMCC, and Israel, with around $12 billion according to its exchange, are the Middle East’s main diamond centres.

A buyer inspects diamonds at Rapaport Auctions in the Dubai Diamond Exchange. Before last month's U.S.-brokered accords that saw the UAE and Bahrain become the first Arab states in a quarter century to establish formal ties with Israel, trade between the centres was small and discreet due to regional political sensitivities.

Filip Hendrickx, manager of Almas Diamond Services, surveys an uncut stone, at Dubai Diamond Exchange in Dubai.

"This is a big opportunity for any young Israeli that wants to start any business in Dubai, not only the diamond business," Shimshi, 41, told Reuters.

The UAE has scrapped a law banning trade with Israel and Emirati and Israeli officials have touted significant economic opportunities created by the opening, which will also allow direct flights between the two countries..

Buyers inspect diamonds at Rapaport Auctions in the Dubai Diamond Exchange.

Diamond dealers working for Stargems handle uncut stones at Dubai Diamond Exchange in Dubai. Dubai, mainly a centre for rough diamonds, has grown its industry from some $3 million in 2000 by leveraging its proximity to Africa, where many diamonds are mined, and India, where 90% of the world's diamonds are polished. "The missing link here in Dubai was the Israeli presence," said Alex Peterfreund, the Dubai managing director of Antwerp-headquartered diamond trader Espeka.

The UAE is the third biggest trading hub for rough diamonds after Belgium and India. Israel and China round out the top five.