DMCC Turns to Angola for Rough Diamonds Supply
June 29, 09
The Dubai Multi Commodities Centre (DMCC) is in a bid to secure direct rough diamond shipments Angola. The DMCC, of which the Dubai Diamond Exchange (DDE) is part of, said it “has begun exploring opportunities to strengthen ties with Angola in the area of diamond trade,” DMCC said Monday.
The announcement follows a visit earlier this month of a delegation from Dubai in Luanda, Angola where Ahmed Bin Sulayem, executive chairman of DMCC, Peter Meeus, chairman of Dubai Diamond Exchange and Paul Motmans, an expert on the Angolan economy, met senior government Angolan officials.
It is not clear at this stage what form the cooperation will take. One possibility is holding rough diamond tenders in the DMCC for DDE members. The DDE held tenders of African goods in the past, and the mechanism for holding future tenders is in place.
“Angola is DMCC’s largest trading partner in rough diamonds,” said Meeus. “The diamond industry is by far the largest revenue generating sector of Angola, with diamond output constituting 95 percent of the country’s non-oil GDP. It is also estimated that more than 60 percent of the country is still yet to be explored. Together, these factors make Angola a significant market for global trade of diamonds through Dubai.”
Meeus added that Dubai is uniquely positioned to service the needs of the diamond sector in the wider region. The emirate has a robust infrastructure of ports, a well-connected transport system, open trade policies and a service-oriented approach.
The delegation from Dubai also held meetings with the Ministry of Mines, and Endiama, the Angolan mining and trading authority that by law is required to be a partner to all diamond mining operations in Angola.
“We hope to cooperate more closely to promote growth and transparency of the diamond trade and to create long-term sustainable benefits for both Angola and Dubai,” said Bin Sulayem.
A delegation from Angola has been invited to visit Dubai to formalize the framework for future initiatives between both governments.