World diamond experts agreed this week that Dubai has long-term sustainable and competitive advantages that will allow it to become the worlds centre for global diamond trade during the first ever regional Diamond Industry Roundtable forum at Watch & Jewellery Dubai (WJD) 2006.
Dubai World Trade Centre (DWTC), organiser of WJD, in partnership with the Diamond Trading Company (DTC), the world’s number one diamond company, brought together the industry to encourage an exchange of ideas between major players and associations within the region.
“At a time when the global demand for diamonds is at its greatest in history, an exchange of knowledge between industry leaders will help companies move towards retail efficiency, product performance, and larger market developments,” said Mr Helal Saeed Al Marri, Director General, Dubai World Trade Centre.
From the discussion, Dubai was affirmed as a new centre for diamond trade and, supporting this, the WJD reported a 20% increase in participation from diamond companies at this year’s trade exhibition.
“Dubai’s strong retail dominance among the Arab world along with its central location as the gateway to the Middle East, will allow it to become a global centre for diamond trading,” said Noora Jamsheer, CEO from Dubai Diamond Exchange (DDE), part of the Dubai Multi Commodities Centre (DMCC). “The Arab world was a previously untapped market for the world and Dubai has allowed the region to connect with international trade.”
The panel also highlighted Dubai’s role as one of the first signatories of Kimberly Process certification - the industry’s response to civil war and conflict in Africa that only allows countries with certification to trade, which has resulted in 99.8% of diamonds sold being conflict-free.
“The Kimberly Process is a great success for the diamond industry as it marks the first time in history that competitors and NGOs have come together with a humanitarian goal,” said Ms Jamsheer.
Discussions also focused on some of the reasons behind the huge demand for diamonds globally.
Nicoletta Danielle from the jewellery house Scintilla said that this demand is owed to the strong supply of diamonds as well as a marked change in jewellery fashions.
“Fashion trends have moved away from the minimalist styles of 10 years ago and consumers are now demanding bigger and bolder diamond jewellery. In the past, the Arab world has been isolated from international trends but, with growing globalization, Arab consumers are now aware of these trends and are embracing them,” Ms Danielle explained.
Jaques Doorhees, the founder of the jewellery industry’s largest online marketplace Polygon, added that because consumers now have access to online information about diamonds they are more confident in purchasing.
“The rise of the Internet has allowed consumers to research the four Cs of diamonds – cut, clarity, colour and carat – which allows them to purchase diamonds with confidence and in turn has led to an increase in demand,” Mr Doorhees said.
When questioned as to whether this increase in demand on such a rare commodity would lead to diamonds becoming out-priced, Jonathan Chippindale of DTC explained that the symbolism of a diamond – love, status and achievement – cannot have a value placed on it.
“The romantic power of the diamond is undeniable as it continues to be the eternal representation of love - it lasts forever. In addition, the diamond gives an incompatible feeling of pride and prestige in owning something that is billions of years old, three times older than the dinosaurs,” Mr Chippindale added.
“We are delighted to have worked with the DTC in bring the industry together. As the premier jewellery exhibition in the region, we are taking an active role in pushing the industry’s development. This round table has proved to be a highly successful debate and we look forward to developing these platforms which key organisations in the future,” Elisa Seminiari, Project Manager, WJD concluded.
