DMCC: Diamond Industry Needs New Narrative, Rebrand To Secure Future
DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – has published a thought leadership report entitled, ‘Diamonds Changing Forever’.
The report is available in Arabic and English, and can be downloaded online here: https://www.dmcc.ae/thought-leadership-diamonds
The research reveals that the global diamond industry is at a major inflection point. Steadily decreasing prices, a decline in profitability and restricted access to finance has placed the industry under significant pressure. The rise of laboratory-grown diamonds and technological disruption in the form of automated manufacturing and grading, raise challenges for the road ahead.
“The diamond industry is facing significant pressure from a variety of sources, and has been in a period of stagnation for nearly a decade. Consumer preference is shifting, the supply and demand of rough diamonds is imbalanced, and access to finance is proving increasingly difficult for many traders. Furthermore, advanced technology and automation has ushered in a new wave of disruptive change that has challenged traditional business models. The combination of these factors has created a sense of confusion and uncertainty in the market however, there is cause for optimism,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.
“DMCC published this report to provide direction as it believes the long-term economic outlook for diamonds is positive. Our research highlights that in order to secure sector growth, the industry must work together, embrace innovation, harness technology and focus on the value proposition to customers. Looking ahead, DMCC will continue to work with partners to drive the diamond sector in Dubai, and positively impact the international diamond trade as a whole,” he added.
The report identifies four necessary steps for the international diamond industry to take collectively in order to secure its future: ‘Develop a new narrative’; ‘Refocus on branding’; ‘Differentiate the product’ and ‘Surpass competition in retail’.
Diamond trade in Dubai has grown exponentially, and the emirate has a strategy in place to become the world’s largest international diamond trading hub in the next five years. In 2003, diamond trade in the emirate stood at AED 13.2 billion (USD 3.6 billion) and in 2018, trade had risen to AED 92 billion (USD 25 billion). In 2018, the Dubai Diamond Exchange (DDE) in Almas Tower alone held 29 diamond tenders, valued at over AED 1.2 billion (USD 330 million), a 75 per cent increase from the previous year.