Dubai diamond trade poised for further growth with expansion of diamond banking facilities

Jean Van der Donckt, Director, Diamond Finance, DMCC, said: "Diamond trade in the UAE has witnessed tremendous growth in the past few years with trade volumes expected to touch to $13.5bn this year, up from $11.5bn in 2007. However, ready access to diamond financing is crucial in order to translate transshipment trade through Dubai's ports into physical trade within the Emirate".

"The diamond trade is extremely capital-intensive, and recent studies estimate local diamond banking needs in excess of $2bn, with finance being sought for all activities.

We congratulate HSBC for taking the lead in providing efficient diamond financing services to the trade, and urge other banks to consider setting up similar units," he added.

Ajay Bhandoola, Head of Diamonds & Precious Metals, HSBC Bank Middle East Ltd said: "We at HSBC are pleased to have been able to respond positively to the initiative of the DMCC and the Diamond and Jewellery community. With the initiatives of the government we do believe that Dubai has enormous potential and growth opportunities in this sector. We are very keen to work with the DMCC and the diamond, jewellery and precious metals community to develop Dubai into a major Global centre for Diamonds and Precious Metals".

HSBC's new unit will provide a full range of financial services to this sector to be able to add value to the industry.

In addition to a range of innovative financing solutions including import credits, working capital and receivables financing HSBC will also be able to offer factoring services and Precious metals hedging and physical services to meet the needs of the entire supply chain.

In addition to providing advisory and counselling services that facilitate local bankers to set up and promote diamond banking activities in Dubai, DMCC has launched various initiatives to further develop the physical infrastructure and ancillary services and support Dubai's diamond trade.

DMCC's flagship Almas Tower will house over 350 international diamond companies, further increasing the need for diamond banking facilities.