Dubai Exchange Tender Sells $15 Million of Rough Goods

The Dubai Diamond Exchange (DDE) held its first rough diamond tender last month and is aiming to make such sales a monthly event due to demand from both local and international traders. DDE says demand is growing faster than initially projected.

Although the tender was relatively small, with just $15 million of rough diamonds sold, the DDE's CEO Noora Jamsheer said it was a further indication of the Gulf state's growing role in the world's diamond trade.

The tender attracted around 30 firms who bought 90 percent of the diamonds on offer with approximately 45,000 carats sold at an average carat price of more than $300.

Dutch bank ABN Amro, which is heavily involved in financing the global diamond industry, provided banking services for the tender.

The latest diamond tender was the second in Dubai in recent months, following one held by Kristall of Smolensk, Russia's largest diamond polisher, in December.

In addition to its emergence as a diamond center, Dubai is already a focal point for the regional gold trade accounting for around 10 percent of the world's gold business.