Dubai’s Diamond Trade Sparkles to Reach $38.3 Billion in 2023

Dubai Multi commodities Centre (DMCC) on Wednesday said that the Emirate’s diamond trade registered a 2% year-on-year growth in the value of rough and polished diamonds reaching $38.3 billion in 2023, representing a five-year compound annual growth rate of 11%.

Reflecting the UAE’s status as one of the world’s largest diamond trading hubs, the value of polished diamonds traded in the UAE grew 32% y-o-y to reach $16.9 billion.

Dubai’s diamond industry has historically centred on rough diamonds, becoming the world’s largest rough diamond trade hub in 2021. However, the rapid growth of the UAE’s polished segment means that it now accounts for 44% of the total trade value. This will be further buoyed in 2024 as the Gemological Institute of America, a global leader in diamond grading, opened a key laboratory in Dubai in February.

A total of $21.3 billion-worth of rough diamonds were traded in the UAE in 2023. Though the global price of rough diamonds decreased approximately 20% in 2023, the UAE’s rough diamond trade only decreased 13% year-on-year by value whilst maintaining strong trading volumes.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said that at $38.3 billion in rough and polished trade last year, these figures are further proof of Dubai’s meteoric rise as a global diamond trade hub.

“Our appeal to diamond industry segments across the world is exemplified by our ability to maintain strong trade volumes in rough whilst rapidly advancing polished and lab-grown diamonds. The polished segment now represents almost half of our diamond trade, consolidating our status as the world’s number one hub for rough and polished and, with major industry players continuing to be drawn to Dubai away from the old hubs of yesterday, DMCC will continue to set the benchmark for the services and value that diamond traders need to grow and prosper,” he said.

Lab-Grown Diamonds

Dubai has also bolstered the support it provides for traders of lab-grown diamonds (LGDs) as it looks to replicate the success it has seen in the natural diamond industry. The value of LGDs traded in 2023 rose 10% year-on-year, reaching a total of $1.6 billion.

In recent years, the UAE has become one of the key drivers of trade growth and sector development for the global diamond industry.

Representing the UAE, Ahmed Bin Sulayem assumed the role of Chair of the Kimberley Process for 2024 late last year, focusing on a ‘year of delivery’ to ensure the KP operates efficiently and autonomously. This is his second term as Chair of the KP following his chairmanship in 2016.

Dubai will be hosting Dubai Diamond Week from November 11 to 15 this year and representatives of the entire global diamond industry are expected to take part in the event. With the KP Plenary Session, the JGT Dubai trade show, and DMCC’s flagship Dubai Diamond Conference taking place, the event is expected to chart the future growth of the industry.

The UAE-based DMCC operates the more than 1,000-strong diamond bourse, which saw over 100 new diamond companies joining in 2022. While the group is yet to release its full-year figures, DMCC said first-half data already showed a 50 per cent rise in total polished diamond trade and over 20 per cent increase in the rough diamond business at DDE.