The MENAT-based banking group Emirates NBD has announced its plans to increase the level of financing available to the Dubai diamond industry, whilst also doubling its diamond financing book in the UAE by 2025.
Emirates NBD has collaborated with Dubai Multi Commodities Centre (DMCC) on the project to leverage its expertise and experience in shaping the global diamond trade.
The collaboration is set to boost Dubai’s economic transformation into the world’s most prominent diamond trading hub and support the economic diversification strategy of the UAE. It further aligns with Dubai’s five-year plan to increase Dubai’s foreign trade to AED 2 trillion as the emirate strengthens its position as a global business hub.
DMCC enters the agreement to offer strategic advice and help promote Emirates NBD’s financial products to UAE diamantaires, especially more than 1000 registered members of its Dubai Diamond Exchange (DDE), home to the world’s largest diamond tender floor located in Almas Tower in Jumeirah Lakes Towers, Dubai.
With this collaboration, Dubai diamond traders will benefit from increased financing opportunities, while accessing a trusted framework for all aspects of diamond trade through DMCC. This would include a globally accepted governance and trade practice framework, dispute resolution, and access to new markets.
In a span of just over 20 years, Dubai has transformed into the world’s second-largest diamond trading centre, with diamond trade in thecity growing significantly over the years, from the $3.5 billion valuation in 2003, to over $17.5 billion recorded in 2020.
The growth exhibited by Dubai has allowed it to also secure its seat as well in terms of the diamond industry. According to the DMCC website, Dubai in the last 15 years has positioned itself as the world’s third-largest diamond trading centre. It is no secret that Dubai has been a global hub for trade throughout its history and this is particularly evident in recent memory.
Also, the famous city – known for its luxury and biggest this and tallest that – such as the world’s tallest building the Burj Khalifa to world-renowned Dubai Mall to Dubai International Airport – doesn’t seem be an odd pairing to add diamond trading hub as another accolade.
Dubai is already leading in blockchain and fintech. As per a recent report by The Fintech Times called Fintech: Middle East and Africa 2021, the UAE, alongside Israel, were the only two countries in the MEA region to be considered premier fintech tier-one hubs. This is a combination of many factors from wider economic development to tech and fintech-specific indicators.
Speaking on their mission to increase financing to the sector, and on their partnership with the DMCC, Ahmed Al Qassim, Senior Executive Vice President and Group Head, Corporate and Institutional Banking, said, “We are delighted to join hands with DMCC on this significant initiative which will boost the UAE’s flourishing diamond industry. As a leading UAE bank, Emirates NBD is well-positioned to deliver trusted financial services to global diamond traders looking to leverage Dubai’s established infrastructure and business-friendly regulations to grow and expand their business. The collaboration is in line with our commitment to support industries critical to Dubai’s ongoing economic transformation as the emirate realises its ambition to become the world’s leading diamond trading hub.”
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC and Chairman, Dubai Diamond Exchange, added, “Dubai’s current position as a global leader in both the gold and diamond markets is intrinsically tied to the UAE Cabinet’s decision to learn from the past mistakes of other global economies and reverse the 5% value-added tax for investors at a wholesale level in May 2018. It is for this reason Dubai is close to becoming the world’s largest diamond hub, having significantly closed the gap with Antwerp for rough and polished trade volumes. Without this critical decision, Dubai wouldn’t even be in the conversation.”
Ahmed added, “In addition, thanks to the efforts of banks such as Emirates NBD, Dubai is also making financial access easier for diamantaires, resulting in an exciting time for the international diamond trade. We are certain that the same success story can be replicated for related businesses such as colored gemstones and lab-grown diamonds, which are currently non-existent, providing a similar level of support is granted.”
