Dubai Solidifies Global Diamond Hub Status with Record-Breaking Stargems Tender

Dubai’s prominence in the global diamond trade continues to shine brightly, further reinforced by the exceptional success of Stargems’ latest rough diamond tender. Hosted by the Dubai Diamond Exchange (DDE), a wholly-owned subsidiary of DMCC (Dubai Multi Commodities Centre), this landmark event not only set a new sales record for both Stargems and the DDE facility but also emerged as one of the largest rough diamond tenders ever held in the United Arab Emirates.

The highly anticipated tender took place within the state-of-the-art facilities of Almas Tower, a renowned hub for precious commodities, from November 17 to 21, 2019. The resounding success underscored Dubai’s growing reputation as a trusted and efficient platform for international diamond trade, attracting a significant volume of rough diamonds and a diverse pool of global buyers.

A Tender of Unprecedented Scale and Value

The Stargems tender showcased an impressive volume of rough diamonds, drawing considerable attention from the international community. During the five-day event, over 577,000 carats of rough diamonds were meticulously viewed across the DDE’s expansive 41 viewing tables. This extensive display captivated the interest of more than 200 international buyers, all vying for a stake in this significant offering.

The total value of diamonds successfully sold during this record-breaking tender reached just under US$50 million, equivalent to approximately AED 180 million. This monumental figure not only set a new benchmark for Stargems but also firmly cemented the DDE’s position as a premier venue for high-value diamond transactions. The rough diamonds on offer originated from various sources across Africa, with a substantial portion – exceeding 500,000 carats – specifically sourced from the SACIM mine in the Democratic Republic of the Congo (DRC). The quality and diverse origins of the stones on offer contributed significantly to the tender’s appeal and its record-breaking performance.

DMCC and DDE: Catalysts for Dubai’s Diamond Vision

DMCC, the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise, has been instrumental in cultivating a robust and transparent environment for the diamond industry in Dubai. Feryal Ahmadi, Chief Operating Officer at DMCC, expressed her enthusiasm regarding the tender’s strong performance, highlighting its contribution to Dubai’s overarching strategic objectives.

“I am encouraged to see such a strong tender on the Dubai Diamond Exchange,” commented Ahmadi. She further elaborated on Dubai’s ambitious trajectory, stating, “Surpassing US$25 billion in 2018, diamond trade through Dubai is on the rise and the emirate will soon be the world’s leading rough and polished diamond trading hub. DMCC has an important role to play in driving the diamond trade in the city and in turn, increasing the industry’s contribution to the economic diversification plan of the United Arab Emirates.”

The Dubai Diamond Exchange plays a pivotal role in this vision. Just prior to this record-setting tender, DMCC had unveiled the extensively refurbished DDE, an initiative that has transformed it into what is now widely considered the largest diamond tender facility in the world. This significant upgrade underscores Dubai’s commitment to providing world-class infrastructure and services to the global diamond industry. Furthermore, the DDE proudly holds the distinction of being the only World Federation of Diamond Bourses (WFDB) accredited exchange in the Middle East, a testament to its adherence to international best practices and standards of integrity and transparency.

Stargems’ Strategic Leverage of Dubai’s Connectivity

Stargems, a DMCC-registered international diamond company with comprehensive interests spanning the entire supply chain – from rough diamond sourcing to retail distribution – has strategically chosen Dubai as a primary platform for its tenders. Shailesh Javeri, Chairman and Founder of Stargems Group, articulated the company’s satisfaction with the tender’s outcome and the benefits derived from operating in Dubai.

“Our November tender has set a new record for Stargems,” Javeri proudly stated. “We are delighted with the overwhelming interest shown in the tender, and the competitive price achieved for the rough stones. Through Dubai, Stargems is able to connect buyers and sellers and take advantage of the city’s connectivity. This is why we will continue to stage tenders on the DDE floor, and have reason to be positive about future sales here in Dubai.”

Stargems’ commitment to leveraging the DDE for future sales speaks volumes about the efficiency, security, and market access that Dubai offers. The city’s unparalleled global connectivity, strategic geographic location, and robust infrastructure create an ideal environment for fostering lucrative transactions and building enduring business relationships within the diamond trade.

Dubai’s Unstoppable Ascent as a Global Gemstone Nexus

The success of the Stargems tender is not an isolated event but rather a clear indicator of Dubai’s accelerating growth as a global hub for precious metals and stones. The emirate’s trade statistics paint a compelling picture of this upward trajectory. In the first half of 2019, the combined value of gold, diamonds, and jewellery trade in Dubai reached an impressive US$50 billion (AED 180 billion), marking a significant three percent increase compared to the same period in the previous year. This consistent growth underscores the emirate’s magnetic appeal for international traders and investors alike.

Driving this surge is a clear and unwavering commitment from the UAE government. In October 2019, the UAE Cabinet approved a forward-thinking policy specifically designed to enhance the country’s already strong position as a global hub for gold and jewellery trade. This comprehensive policy framework includes the launch of a range of strategic initiatives and practical tools aimed at supporting its effective implementation. These measures are designed to further streamline trade processes, enhance regulatory frameworks, and foster an even more attractive ecosystem for businesses operating in this sector.

Dubai’s strategic geographical location, bridging major diamond producing regions in Africa and key consumption markets in Asia, positions it uniquely. Coupled with its world-class logistics infrastructure, secure trading environment within zones like DMCC, and a supportive government keen on economic diversification, Dubai offers an unbeatable proposition for the global diamond industry. The continuous investment in facilities like the DDE, along with a transparent regulatory environment, instills confidence among international buyers and sellers, making Dubai the preferred destination for critical transactions such such as rough diamond tenders.

Future Outlook: Sustaining Momentum and Global Leadership

The record-breaking Stargems tender at the DDE serves as a powerful testament to the dynamic growth and strategic importance of Dubai in the global diamond landscape. It showcases not only the immense potential of the market but also the efficacy of the platforms and infrastructure established by DMCC.

As Dubai continues to invest in its capabilities and reinforce its commitment to the global diamond industry, the vision of becoming the world’s leading rough and polished diamond trading hub moves closer to reality. The synergy between DMCC’s strategic leadership, DDE’s state-of-the-art facilities, and the strong participation of international companies like Stargems, creates a compelling narrative for sustained growth and innovation. This collective effort ensures that Dubai will remain at the forefront of the global diamond trade, driving economic diversification for the UAE and providing unparalleled opportunities for businesses worldwide.