AWDC Holds Seminar for Singapore Banks on Diamond Financing

(IDEX Online) – The Antwerp World Diamond Centre (AWDC) held a business-to-business event to bring together the Antwerp and Singapore diamond industries on Wednesday, and organized a seminar on diamond financing for the Singapore banking community.

First Gulf Bank PJSC, CTBC Bank Co. Ltd., Deutsche Bank AG, Union Bancaire Privée, UBP SA Singapore Branch and Indian Overseas Bank were among the banks attending the seminar which featured discussions on the current state and the future of diamond financing.

Singapore is not only a growing retail market for diamonds, but also a financial hub that is home to numerous branches of international banks. However, few of those branches specialize in diamond funding, the AWDC said in a statement.

"Diamond funding is very much a niche market. Only 5 percent of all financial institutions are familiar with this specific type of financing, "says Ari Epstein, CEO of the AWDC. "Now that Singapore is no longer just a transit market, but also a growing retail market, diamond funding may prove interesting for a number of Singaporean banks."

The event was part of the Belgian Princely mission to Singapore, with a networking opportunity followed by a gala evening in the presence of HRH Princess Astrid of Belgian and the Belgian Minister of Foreign Affairs Didier Reynders.

Singapore has traditionally acted as a link in the diamond supply chain between Antwerp and India. In recent years, however, the country has developed into a booming retail market for jewelry, the AWDC said.

"Over the next five years, Singapore's jewelry market is expected to increase an average of 3 percent each year," said Ari Epstein, CEO of AWDC. “Diamonds could play a major part in that development.” 

Antwerp has exported 1.6 million carats with a value of $283 million of rough diamonds to Singapore since 2009. More than 42 percent of the total came in 2014 alone “which clearly demonstrates an upward trend in the rough diamond trade between Antwerp and Singapore,” the AWDC said. Antwerp has exported approximately 184,000 carats of polished diamonds with a value of $315 million to Singapore in the last six years.

"Just like Malaysians, Singaporeans are particularly fond of gold, which they consider an ideal investment product," says Epstein. "In recent years, however, Singaporeans have been greatly influenced by the bigger luxury brands. As a result, they have developed a taste for accessorizing designer clothes with exclusive jewelry."

Jewelry sales in Singapore increased by nearly 5 percent in volume and 8 percent in value last year. Currently, the Singaporean jewelry market is worth approximately $3.5 billion, with 26 percent of jewelry sold containing diamonds. "Singapore's middle class is forecast to grow in the coming years, which would have a positive effect on the diamond market," Epstein added.