(IDEX Online News) – The two-day Dubai Diamond Conference 2013 underscored the changing landscape of the global diamond industry, and the environment surrounding it.
The opening speeches clarified that Dubai's intention is to replace Antwerp as the leading rough diamond center. “The global diamond industry is no longer dominated by Western countries," said Dubai Multi Commodities Centre Executive Chairman Ahmed Bin Sulayem.
This was further echoed in the presentation by Peter Meeus, chairman of the Dubai Diamond Exchange. Reviewing Dubai's growth over the past few years, Meeus showed an article from a Belgian newspaper that described the decline of Antwerp as a trading center.
In his presentation, analyst Chaim Even-Zohar compared the financials of De Beers to those of Alrosa, describing the former as an unfocused company with an unsuccessful retail operation. Alrosa, on the other hand, was described as a focused company with a better bottom line preparing for an IPO.
With DTC's move to Botswana and Africa serving as the main source of rough diamonds on one hand, while India and China polishing most of the world's rough diamonds on the other, Dubai feels that its location in between the producers and manufacturers is further reason for a shift of trading centers from Antwerp to Dubai.
"With Southern Africa becoming a global rough diamond trading hub, there will be tremendous opportunities for players in the diamond supply pipeline. As such, the development of new trade routes is likely to continue, as increased demand from Asian markets is expected," said DTC CEO Varda Shine. "Dubai has shown remarkable resilience in grasping these opportunities."
"Dubai is ideally positioned, geographically and operationally to serve a pivotal role in this ever-changing landscape. We are truly at the centre of the 'New Silk Road' and will bring it to its full potential,” Said Meeus.
Other notable speakers during the first day of the conference included ministers of Mines, Susan Shabangu of South Africa, Dr Obert Moses Mpofu of Zimbabwe and Kitso Mokaila of Botswana.
Mokaila, describing himself as “the new kid on the block,” stated that Botswana intends to demand a greater local allocation of diamonds from De Beers for beneficiation purposes in the next two-year marketing contract. The negotiations for the next contract are expected to start in six years, two years before the current 10 year-contract ends.
