Dubai Diamond Exchange, another big leap forward

The Dubai Diamond Exchange was officially launched during the two-day annual meetings of the World Diamond Council in Dubai this week. For Dubai is doing things properly and signing on to the WDC, joining a select community of 24 diamond exchanges around the world.

Diamond exchanges do not work like stock markets with prices flashing on boards and brokers waving their hands.

What diamond exchanges provide is a secure working environment with, for example, standard lighting so that diamond quality can be accurately assessed. They also operate a strict membership system to keep undesirable operators out and the business clean.

The fact that diamonds are a highly transportable store of wealth makes the trade especially vulnerable to abuse, and that is where the World Diamond Council comes in as a guardian of the sector.

The World Diamond Council has four large exchanges in New York City, Israel, Antwerp and India,' explained Ernest Blom, Vice-President of the World Federation of Diamond Bourses at a press conference in Dubai. 'We are confident that Dubai has every chance of being in the top rank because of backing of the government and liberal business environment in Dubai'.

By the middle of the month membership applications will be open for the new Dubai Diamond Exchange. DMCC CEO Tawfique Abdullah says all prospective members will be subject to due diligence testing and have to go to a committee for final approval.

'Membership provides access to all the exchanges around the world and is a jealously guarded privilege,' Mr. Blom added. 'There are also arbitration rules for disputes.'

So Dubai is joining another select international club with the creation of the Dubai Diamond Exchange. In fact, this is recognition of the status Dubai has already achieved in the so-called 'rough' diamond trade, and as a gold and jewellery centre.

Needless to say, this is also a real estate opportunity for Dubai, and the purpose-built Almas Tower - Almas is Arabic for diamond - is to be built as a part of the DMCC's 300-hectare development site opposite the Dubai Marina on the Sheikh Zayed Road. A temporary home for the DDE will be in the Business Avenue near to the Dubai International Airport.