Israeli Polished Exports Rose by 6% in 2003

Net rough diamond exports from the country leaped by 37.8 percent to $2.229 billion. Diamond Controller Udi Sheintal explains the rise in rough exports and polished imports in the growing trend of Israeli diamantaires to manufacture goods in countries where labor costs are lower.

Sheintal credits the American market for the Israeli growth, noting stability in the diamond industry throughout 2003.

Full figures regarding exports by country are not available yet but the share of exports to the US grew slightly to 67 percent from 66.7 percent in 2002. Exports to Hong Kong took up 12 percent of polished exports, followed by Belgium (7 percent) and Japan (2 percent).

Rough diamond imports to Israel in 2003 were valued at $3.892 compared to $4.412 in 2002 - a 12 percent fall.

Sheintal adds that the recent changes the DTC introduced to its marketing policies have caused difficulties in finding rough diamonds in the global market, which caused the drop in Israeli rough imports.

Total rough diamonds imported to Israel directly from De Beers was $887 million, 22 percent of total rough imports.

The Diamond Controller also noted that 2003 was the first year of documenting and controlling the imports of rough diamonds as part of the Kimberley Process, designed to curb the trade in Conflict Diamonds.

Israel, the first country to apply the documentation system, as issued about 8,000 documents during the year.

Diamond industry indebtness to banks at the end of December stood at $1.659 billion.

Ehud Olmert, the Israel Deputy Prime Minister and Minister of Industry, Trade and Employment, expressed satisfaction at the diamond export figures, which are an all time record of polished exports.

2003 will be remembered as a successful year to the diamond industry despite problems in finding rough on the global market, he adds.