Over the course of the next five to ten years, tax experts believe more indirect and direct taxes will be levied in the Arab Gulf states (GCC), such as the UAE, including taxes on wealth and property, corporate and income tax. As oil prices are expected to remain low, the new taxes, some of which will be implemented by the end of this year, should open up new sources of revenue to fund budgets, which are under pressure as oil revenues decline.
The Dubai Multi Commodities Centre (DMCC) today (Sept. 25) unveiled the redesigned and upgraded Dubai Diamond Exchange (DDE) auction facility, which it is calling the world’s largest diamond trading floor. Located at the Almas Tower in Dubai, UAE, the refurbished trading floor has 41 viewing stations with specially designed lighting and high-resolution cameras. Designed principally for rough and polished diamonds, the DMCC says that changes have been made to the DDE windows to enable trade of colored gemstones.
The 21st Presidents’ Meeting of the International Diamond Manufacturers Association (IDMA) and the World Federation of Diamond Bourses (WFDB) begins today, September 23, in Dubai. It will take an in-depth look at the issue of synthetic diamonds with a panel discussion dedicated to this issue, while another panel will discuss traceability, provenance and blockchain technology.
The Dubai Diamond Exchange (DDE), a subsidiary of the DMCC, completed three rough and polished diamond tenders in the week of July 16 - 23 while the DDE is under renovation. The three separate tenders were hosted by Rapaport, Stargems and Trans Atlantic Gem Sales (TAGS), with reportedly over 200 companies participating.
This weekend, May 11 -13, the Dubai Multi Commodities Centre (DMCC) will be hosting what it is calling the "first-ever rough laboratory-grown diamonds tender" on its Dubai Diamond Exchange (DDE). According to a press release, 50,000 carats of Chemical Vapour Deposition (CVD) lab-grown diamonds will be on offer. "The tender is in line with DMCC’s strategy to attract, facilitate and drive new trade flows through Dubai," the organization says.
Trans-Atlantic Gem Sales (TAGS) held their first tender of 2019 this month from 12 - 19 February in Dubai, selling a record $50.1 million worth of rough diamonds, as per a press note from the company. The sale featured a total of 79,213 carats of high-quality stones, included exceptional, special rough diamond collections with large and single stones from Angola, Namibia and South Africa. TAGS said the tender achieved an average price of $633 per carat.
ALROSA, the largest diamond mining company in the world, held international auction for special size rough diamonds (over 10.8 carats) in Dubai. The overall revenue amounted to $8.3 million. The company sold 121 rough diamonds with total weight of 1,950 carats. Firms from UAE, India, Belgium, Israel, Hong Kong, Russia and the USA participated in the auction, and 31 firms were recognized as winners in different positions.
HRD Antwerp, a European leading authority in diamond certification, has entered a partnership with Dubai-based jewellery retailer Stargems Group to certify their entire jewelry inventory through the establishment of a diamond jewelry grading lab. This cooperation will ultimately ensure the transparency and authenticity of each jewelry piece, HRD Antwerp announced today in a statement.
Russian diamond giant Alrosa held two auctions of special rough stones (10.8 carats and up) during the month of November, first in Vladivostok and then in Dubai, earning an average of approximately $4,900 from the sale of 4,030 carats, yielding a total of $19.8 million. In Vladivostok, the miner sold 119 gem-quality rough diamonds with a total weight of 1,890 carats for $10.3 million, representing an average price per carat of $5,540. This was the fourth and final auction in Vladivostok, their Far Eastern platform, for 2018. They started holding auctions there in late 2016.
The United Arab Emirates (UAE) Cabinet has announced that it is reversing the 5 percent value added tax (VAT) for investors in gold, diamond and precious metals at the wholesale level. Doing so will “contribute to stabilising the gold and diamond sector in the UAE as well as stimulating investment in this sector”, a statement said following the Cabinet decision. The move, which goes into effect immediately, is expected to ease the pressure on gold and diamond traders in the country. Retailers will continue to impose 5 percent on all jewelry transactions taking place at their shops.
The tax regimes in the four major diamond midstream trading centers - Antwerp, India, Dubai and Israel - have been the topic of great discussion and significant change in recent years. The beginning of this year saw the tax policies in both Belgium (Antwerp) and Israel (Tel Aviv) change. These countries levied a minimum tax on diamond companies, which was levied as a percentage of the turnover. While this was termed as a “turnover-based tax”, it was never truly a turnover-based tax.
Speaking at the opening day of the Dubai Diamond Conference, at the Dubai Multi-Commodities Centre (DMCC), Peter Meeus, Chairman of Dubai Diamond Exchange (DDE) said the Value-Added Tax (VAT) set to be introduced in the UAE from next year could deal a crippling blow to Dubai's loose diamond trade. “The possible cost implications of a VAT introduction for UAE traders are huge,” Meeus said. “Winter is coming,” he added, "because in a business where profit margins are very thin, every quarter of a per cent is important to traders handling billions of dollars to decide where to ship." He furthe
The World Diamond Council (WDC), an industry group focused on preventing conflict diamonds from entering the legitimate global supply chain and protecting the value of natural diamonds, will hold its 13th Annual General Meeting (AGM) in Dubai, United Arab Emirates, October 15-17, 2017. The meeting will be hosted by Dubai Multi Commodities Centre (DMCC). Among the items to be discussed at the AGM are industry recommendations for the Kimberley Process Certification Scheme (KPCS) review cycle and a proposed renewal of the WDC System of Warranties.
Trade-focused VicenzaOro Dubai has merged with consumer-friendly Dubai International Jewellery Week to create the region’s only B2B and B2C jewelry event, reports Professional Jeweller. The VOD Dubai International Jewellery Show, as the event will be called, is to take place November 15-18 2017 at the Dubai World Trade Centre. The intention is to bring together entire the global jewelry industry chain - from international trade organizations and chambers of commerce, to wholesalers, manufacturers, traders, retailers and end consumers.
Rapaport News has obtained a letter from De Beers to its clients informing them that they will close its auction-sales office in Dubai due to declining demand from local companies. According to the letter, De Beers will terminate its Dubai rough auctions on July 31, meaning De Beers will no longer display rough diamonds there from the year’s sixth sales cycle onward.
ALROSA President Sergey Ivanov and Executive Chairman of the Dubai Multi Commodities Centre (DMCC) Ahmed Bin Sulayem agreed upon enhancing cooperation in diamond trade, according to a press release from ALROSA distributed on Wednesday. At a working meeting in ALROSA’s headquarters in Moscow, Ivanov and Sulayem discussed options for expanding ALROSA’s trading activities at the Dubai Diamond Exchange, a trading platform within DMCC. The parties also agreed to step up fight against undeclared synthetic diamonds.
Namibia's Anti-Corruption Commission (ACC) has dropped an investigation into whether a new government independent sales company called Namib Desert Diamonds (Namdia) deliberately sold Namibian diamonds cheaply to Dubai-based firms, writes The Namibian, which first broke the story back in November 2016. The Namibian previously raised concerns that Namdia, tasked to sell stones worth over US$150 million (N$2.1 billion) per year as stipulated by a
Dubai has imposed a 5% import duty (from 0.36%) on gold and diamond jewelry as of January 2017, opening the debate on who will win or lose: India's exporters of said jewelry, or their domestic market purveyors and consumers; local manufacturers in Dubai, or their exporters of Indian gold and diamond items? The Economic Times frames the debate as follows: "Dubai has imposed a 5% import duty on gold and diamond jewellery, a move which is likely to hurt Indian exports at a time when demonetisation has hit business at home.
Controversy is brewing in Namibia about who is selling their diamonds to whom, for how much, and whether the country is obtaining fair value from its precious resources. The Namibian newspaper previously raised concerns that a new government independent sales company called Namib Desert Diamonds (Namdia), which is designated to sell stones worth over an estimated US$150 million (N$2.1 billion) per year as stipulated by a 10-year agreement
The 2016 KP Plenary kicked off yesterday in Dubai as KP Chair Ahmed Bin Sulayem welcomed representatives of 81 governments and industry organizations. First day activities included a third diamond valution forum addressing the elusive question of how to provide fair value for diamonds from Africa and achieve a formalized approach to valuing diamond resources.
The UAE Kimberley Process Chair (KP Chair), Ahmed Bin Sulayem, will host a special forum on synthetic diamonds and their impact on the future of the diamond industry on November 14 in conjunction with the annual KP Plenary. Bringing together representatives from 81 countries, the global diamond industry and civil society, the event will discuss a number of key issues facing the industry.
As announced in a press release, the UAE Kimberley Process Chair (KP Chair), Ahmed Bin Sulayem will host a one-day ‘KP Chair Special Forum’ on rough diamond valuation on 13 November, coinciding with the KP Plenary Session between 13 and 17 November 2016. The event will discuss key issues facing the industry with participants from 81 countries, as well as industry players from across the supply chain. This is third forum of its kind hosted by the UAE KP Chair.
"All eyes in the Indian diamond industry are set on the forthcoming meeting between the Kimberley Process Certification Scheme (KPCS) and Antwerp World Diamond Centre (AWDC) on rough diamond valuation in Antwerp on September 21", writes The Times of India. The aim of such forums is to develop a set of global standards for pricing rough diamonds, which KP chairman Ahmed Bin Sulayem believes would help artisanal miners figure out the value of their rough production and negotiate prices. "We want to make sure the whole industry benefits from this," Sulayem said.
The Kimberley Process Chair, Ahmed Bin Sulayem, has announced the second in a series of three, one-day ‘Special Forums’, on rough diamond valuation, to be held on 30 September 2016 at the Hylitt Hotel, Antwerp, Belgium. In association with the Antwerp World Diamond Centre (AWDC), the Special Forum will focus on valuation practices employed by the global diamond industry.
The UAE is considering the introduction of so-called blockchain technology to the global diamond trade in a bid to help prevent conflict diamonds getting on to the market, according to a report in the UAE's The National. Blockchain is an Internet-based book-keeping system that provides a permanent record of financial transactions. Applying it to the diamond business could establish a tamper-proof record of the provenance of diamonds.
Representatives of the European Union (EU) and India participating in the KP Intersessional which took place in Dubai from May 23-26 presented a co-ordinated proposal under which the EU will be KP Vice-Chair in 2017 and KP Chair in 2018, while India will become KP Vice-Chair in 2018 and assume the position of KP Chair in 2019.
ALROSA Vice-President Andrey Polyakov has become World Diamond Council (WDC) President, succeeding Edward Asscher whose two-year term as President ended on May 22. Polyakov has served as WDC Vice President since 2015. WDC members come from the entire international diamond industry supply chain, from mining to retail. The group represents the diamond industry in the development and implementation of regulatory and voluntary systems developed by the United Nations and the Kimberley Process to eradicate trade in conflict diamonds.
Financing and persuading banks to provide credit to the diamond trade, the lack of profitability for manufacturers, the critical need for generic marketing of diamonds and persuading Millennials to buy diamond jewelry, the damage caused by frequent changes to price lists, the threat from synthetic diamonds and deliberate overgrading, together with diamond sourcing protocols were the main issues debated at length at the World Diamond Congress in Dubai this week.
Award-winning news director of JCK Rob Bates, in his opinion piece "Why the NGOs and Dubai Still Can’t Get Along", addresses the persistent conflict between Kimberley Process (KP) chair UAE and the KP civil society coalition - the group of 11 human rights groups that participate in the KP - that is threatening to turn the upcoming KP interessional meetings into a failure: "the recent turn of events looks like we are in for another year of stagnation and animosity, and the scheme will once again fail to make needed improvements, despite the UAE’s promises last year of a fruitful, pr
Reports from multiple sources are starting to detail the murky structures hiding the tremendous wealth accumulated by certain players in the diamond and gold trade that emerged through last week's release of the Panama Papers.
An UAE-sponsored initiative aimed at standardising pricing mechanisms for the rough diamond trade is due to be launched later this year under the country’s chairmanship of the Kimberley Process, reports UAE daily The National. Some may view this move as ironic, as it comes in response to criticism of trade and transfer mispricing practices within the diamond trade, which NGOs claim has deprived diamond producer states of crucial tax revenue - and UAE is considered the main practitioner of transfer pricing.
London-based Citigate Commodities Trading Ltd., a commodities trading/brokerage firm specializing in rough diamonds, precious metals and bonny light crude oil has acquired a kimberlite diamond concession in Sierra Leone. Located adjacent to one of the country's largest diamond reserves, Citigate's extraction and mineral rights are spread over an area of 79 square kilometres to explore diamonds.
As the Russian economy worsens and the crisis between Turkey and the Russian Federation remains in deep freeze, Turkish jewelry exporters are looking for new markets for their goods. Producers aim to expand exports by 30% to $3.5 billion this year by focusing on new markets, after seeing decreases of around 15% on the year in 2015 as demand from Russia plunged, reported the Hurriyet newspaper. “Russia and the Turkic republics have been our key markets, but Russian economic activities have ground to a halt since the Ukraine crisis.
The UAE is also making efforts to have Partnership Africa Canada rejoin the process after civil society groups withdrew from the KP in protest at the UAE's election as 2016 Chair, Dubai Diamond Exchange Chairman Peter Meeus tells IDEX Online. "Their non-participation in the Kimberley Process in 2016 under UAE’s chairmanship is a source of deep regret. We have now reached the point where the World Diamond Council (WDC) has agreed to mediate the matter between the two sides.
Kimberley Process Chair Ahmed Bin Sulayem has warned of the ongoing difficulties facing the global diamond industry and expressed the UAE's commitment to act responsibly to overcome challenges. “2016 will be a challenging year for our industry with continuing oversupply, low commodity prices and tightening liquidity," said Bin Sulayem. "The social impact of these combining factors is likely to be severe and felt across large parts of the world's diamond producing regions.”
The World Federation of Diamond Bourses (WFDB) will hold its 37th World Diamond Congress in Dubai from May 16 to 19, and has identified transparency, responsibility and sustainability as the key themes of the meeting.
The National Bank of Fujairah (NBF) has opened a diamond financing office in the Almas Tower, part of the Dubai Multi Commodities Centre. The opening follows the establishment of a specialized diamond financing team in April this year focused on financing manufacturers and traders of rough and polished goods. According to a report in Emirates24/7, the unit brings in industry expert in order to provide a range of trade finance products tailored to client needs.
French luxury diamond brand, Korloff Paris, has unveiled what it calls the world’s largest black diamond in Dubai. The diamond weighed 421 carats as a rough stone but has been cut and polished into an 88-carat gem. Korloff Paris, founded by the firm’s CEO – French jeweler Daniel Paillasseur – said the diamond is insured for $37 million.
Ahmed bin Sulayem, the chairman of the Dubai Multi Commodities Centre, has been appointed by the UAE's Ministry of Economy as the chairman of the Kimberley Process which the UAE will chair in 2016. “The UAE will use this opportunity to focus on areas that will have the greatest impact on growth and development, in addition to sustaining the core values of the organization,” he told The National. He added that he would have an “open door” for organizations that have threatened to boycott the KP proceedings in Dubai.
Yesterday, the Civil Society Coalition announced at the KP Plenary meeting in Angola that it will boycott the KP next year in protest at the United Arab Emirates' (UAE) 2016 chairmanship due to, "widespread concerns over UAE's lenient standards and antagonistic relationship with the Coalition." Partnership Africa Canada 's (PAC) Director of Research, Alan Martin, said: "We have been calling on Dubai to change its harmful diamond trading practices.