Dubai Bucks Trend with Rise in 2009 Diamond Trade

Buyers at Dubai's Jewellery Week (above). Diamond trade increased in the gulf country

Dubai's polished diamond trade rose to $13.9 billion in 2009, in stark contrast to the declines suffered by the main trading centers. Rough diamond trade declined to $18 billion in 2009 compared to $20.76 billion in 2008.

Polished diamonds imports to the emirate grew by 4.5 percent to $6.9 billion from the $6.6 billion imported in 2008. Exports in 2009 grew 29.6 percent to $7 billion from $5.4 billion the year before the Dubai Diamond Exchange (DDE) and Dubai World Statistics Department reported on Tuesday.

The volume of trade rose to 80 million carats of polished diamond from 32 million carats in 2008. The figures did not include a breakdown by imports and exports on the volume of trade.

On average, the value of polished goods that entered and exited the emirate was $173.75 per carat. Often, goods imported into Dubai are exported at a much higher value.

Rough diamond trade declined in value to $18 billion from $20.76 billion in 2008, a 13.3 percent decrease. In volume, the trade grew by 3.2 percent to 97 million carats.

The general increase in diamond trade reflect the strong trade and consumer market in the region, according to Ahmed bin Sulayem, executive chairman of the Dubai Multi Commodities Centre Authority. “The trend underlines the Middle East’s growing significance as a flourishing diamond consumer market, and more importantly, Dubai’s established role as the trade hub through which this market can be accessed."

Dubai’s leading diamond trading partners are India, Belgium and Hong Kong, with growing trade with Angola, Switzerland and the U.S.