Anan Fakhreddin

'The appeal of diamonds is not as a store of value but as the ultimate luxury product and their association with emotional events such as marriage,' says DTC Diamond Promotion Service Director for the Gulf, Anan Fakhreddin, who moved to Dubai a few months ago.

'The Gulf and India are the fastest growing diamond markets in the world, and that is one reason for my relocation to Dubai,' he says. 'We are also impressed with the Dubai Metals and Commodities Centre and its diamond bourse and diamond tower. Dubai is positioning itself well in the industry.'

But even for those that prefer to see diamonds as just another commodity, this is still a very special industry with a very special structure. De Beers, for example, was established 116 years ago to dominate the market and it still does with 60% of the world's diamond trade by value; the company has mines in Botswana, Namibia and South Africa, and also markets Russian diamonds as well.

From its London base DTC sells rough, un-cut diamonds to 84 approved cutters and polishers who fashion the gem stones. But sales in the Gulf region have been going particularly well in 2004, up by 40% in the first half, making the GCC the third largest market in the world with $1.5 billion in annual sales.

'We are about to launch our 'Whispers' diamonds promotion which will cost $1.1million in the Gulf alone,' says Mr Fakhreddin. 'This is created by our global agency JWT and includes a 30-second television commercial, print and tactical advertising, direct mail, outdoor advertising and branding at the point-of-sale.

'This puts a strong emphasis on the emotional appeal of diamonds, and is part of a global campaign. People in this part of the world travel a lot and use the Internet, so they expect the same marketing package as anywhere else, though we don't have Internet advertising here yet.' So why has the GCC market been so strong for diamonds this year?

'The macroeconomic position with high oil prices is certainly a major factor here,' says DTC's man in Dubai. 'But since our strategic review in 2001 we have been trying to build local brands, and in particular helping local jewelers build their own brands. Damas is a good example of a Dubai company that now handles 88 international and regional brands, and has become a brand itself.'

DTC likes to remind people of the four 'C's' that should guide any buyer of diamonds: 'Cut, Colour, Carat and Clarity' but Mr. Fakhreddin adds a fifth 'C', and that is Confidence'.

'Buyers need to feel confident in the jeweler who is advising them on a purchase, something that DTC works hard to inspire and promote through our promotion of best practice,' he says.

In the meantime, DTC has no intention of dropping its 60 year old slogan, 'Diamonds are Forever' - after all this is literally true, many diamonds are three billion years old and date back to the creation of the planet earth. 'We bring the promise of eternity past and to come', says DTC, 'and the scarcity value of diamonds is not about to go away.'