Surat's diamond industry is all set to glitter with the direct business links with the world's second largest diamond centre in Dubai following the proposed launch of international connectivity by the Air India (AI) starting from May 15.
For diamond traders and jewellery makers over the world, Dubai remains an important trade centre for pearls. But, of late, a growing portion of trade in rough diamonds is getting shifted from the Belgian port city of Antwerp to Dubai, a constituent of the United Arab Emirates (UAE).
Earlier, the rough diamond cutting and polishing business had moved from Antwerp to Surat in Gujarat and a few other places, due to cost considerations. Now, in the last couple of years, Dubai has emerged as the second biggest market for rough diamond trading, with many Indian diamond companies and leading export houses setting up offices at the Dubai Multi Commodity Centre (DMCC).
Besides UAE-based banks promising finance to merchants, what is to aid Dubai gain stature as a diamond trading centre is proximity to India, the world's largest importer of rough gemstone.
Promise of easy financing by UAE-based banks is encouraging traders, many of whom of Indian origin, to patronise Dubai. Nearly 80% of the world's rough diamonds are polished at Surat, where factories are now facing the heat of demand fall in China and India.
DMCC, which operates a diamond certification scheme is the entry and exit point for roughs. From virtually next to nothing at the beginning of the century, UAE's share in diamond imports climbed to $5.9 billion in 2014, compared with $16 billion for Antwerp.
Talking with TOI, regional chairman of Gem and Jewellery Export Promotion Council (GJEPC), Mr. Dinesh Navadiya said, "More than 30 to 35 diamond traders are daily travellers to Dubai. They drive down to Mumbai, catch a flight to Dubai and return to Mumbai in the evening. They visit Dubai to buy rough diamonds. Now, that there will be a direct flight from Surat to Dubai, it will be a win-win situation for the entire trade."
Navadiya added, "Not only this, Dubai is the gateway to African countries. The sightholders from Surat can directly catch flights from Dubai to Botswana to attend the sale sights of De Beers at Gabarone. Moreover, foreign buyers will be directly visiting the diamond factories in Surat from Dubai."
Managing director of Dharmanandan Diamonds, Hitesh Patel said, "We will no longer have to visit our Mumbai offices to meet the buyers. They can directly come down to Surat via Dubai. We are expecting that more international flights in the future will certainly give a fillip to the diamond centre here."
