DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – collaborates with Emirates NBD, a leading banking group in the MENAT region, on a project that will increase financing available to the Dubai diamond industry. DMCC, home to the Dubai Diamond Exchange (DDE), which boasts the world’s largest diamond tender floor, will offer strategic advice and help promote Emirates NBD’s financial products to UAE diamantaires.
The collaboration is set to boost Dubai’s economic transformation into the world’s number one diamond trading hub and support the economic diversification strategy of the UAE. It further aligns with Dubai’s five-year plan to increase Dubai’s foreign trade to AED 2 trillion as the emirate strengthens its position as a global business hub.
DMCC enters the agreement to offer strategic advice and help promote Emirates NBD’s financial products to the 1000+ registered members of DMCC’s Dubai Diamond Exchange, located in Almas Tower in Jumeirah Lake Towers, Dubai. The agreement will also boost Emirates NBD effort in its plan to double the banks diamond financing book by 2025.
With this collaboration, Dubai diamond traders will benefit from increased financing opportunities, while accessing a trusted framework for all aspects of diamond trade through DMCC. This would include a globally accepted governance and trade practice framework, dispute resolution and access to new markets.
In a span of just over 20 years, Dubai has transformed into the world’s second-largest diamond trading centre, with diamond trade-in city growing significantly over the years, from USD 3.5 billion in 2003 to USD 17.5 billion in 2020.
“Dubai’s current position as a global leader in both the gold and diamond markets is intrinsically tied to the UAE Cabinet’s decision to learn from the past mistakes of other global economies and reverse the five per cent value-added tax for investors at a wholesale level in May 2018. It is for this reason Dubai is close to becoming the world’s largest diamond hub, having significantly closed the gap with Antwerp for rough and polished trade volumes. Without this critical decision, Dubai wouldn’t even be in the conversation,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC and Chairman, Dubai Diamond Exchange.
“In addition, thanks to the efforts of banks such as Emirates NBD, Dubai is also making financial access easier for diamantaires, resulting in an exciting time for the international diamond trade. We are certain that the same success story can be replicated for related businesses such as coloured gemstones and lab-grown diamonds, which are currently non-existent, providing a similar level of support is granted,” he added.
Ahmed Al Qassim, Senior Executive Vice President and Group Head, Corporate and Institutional Banking, said, “We are delighted to join hands with DMCC on this significant initiative which will boost the UAE’s flourishing diamond industry. As a leading UAE bank, Emirates NBD is well-positioned to deliver trusted financial services to global diamond traders looking to leverage Dubai’s established infrastructure and business-friendly regulations to grow and expand their business. The collaboration is in line with our commitment to support industries critical to Dubai’s ongoing economic transformation as the emirate realizes its ambition to become the world’s leading diamond trading hub.”