MID Diamond of House logo

Blog

Focus on

the diamond market

The signing of the Abraham Accords in September 15, 2020, on the laws of the White House in Washington, D.C., from left: Minister of Foreign Affairs of Bahrain Dr. Abdullatif bin Rashid Al-Zayani, Israeli Prime Minister Benjamin Netanyahu, U.S. President Donald Trump, and Minister of Foreign Affairs for the United Arab Emirates Abdullah bin Zayed Al Nahyan. (Official White House Photo by Joyce N. Boghosian)

AS ISRAEL NORMALIZES RELATIONS WITH UAE AND BAHRAIN,
ISRAELI AND DUBAI BOURSES FINALIZE THEIR OWN COOPERATION DEAL

History was made on the lawns of the White House in Washington, D.C., when on September 15, 2020, Israeli Prime Minister Benjamin Netanyahu signed an agreement with the foreign ministers of the United Arab Emirates and Bahrain, normalizing relations between the Jewish state and the two Arabian Gulf countries. Just two days later, the impact of the deal became apparent, when the Middle East’s two largest diamond bourses, the Israel Diamond Exchange and the Dubai Diamond Exchange, signed their own strategic agreement of collaboration, to promote cooperation and dialogue. As has become common during the COVID crisis, the latter signing ceremony took place not in person, but rather during a video conference.

As part of the agreement, the Israel Diamond Exchange (IDE) will open an office in Dubai and the Dubai Multi Commodities Centre (DMCC), which is the organization of which the Dubai Diamond Exchange is part, will open its own representative office in Ramat Gan.

The two parties said they will share experience and knowledge, work to promote bilateral trade and collaborate on exhibitions, visits and conferences. They also agreed to arrange an Israeli-Dubai diamond fair to be held in Dubai and Ramat Gan and to promote electronic trade.

According to the agreement the two parties will also promote collaboration between IDE members and the DMCC and DMCC members and the IDE.

AGREEMENT BETWEEN TWO WORLD-CLASS CENTERS

“We are very excited to sign this strategic agreement with the DMCC,” said Yoram Dvash, president of the Israel Diamond Exchange. “Dubai, with its Free Zone and convenient business conditions, has become one of the most important diamond centers in the world. This agreement between our two world-class centers will be of enormous value to both sides.”

Dvash added that he and other Israeli diamond leaders will maintain already warm personal relations with Dubai diamond leaders. “Through the World Federation of Diamond Bourses (WFDB), we have come to know and value the leaders of the Dubai diamond industry. 

The agreement will enable us to build on these relationships to the benefit of the members of our respective bourses,” he said.

The Israel Diamond Exchange complex in Ramat Gan

 “The strategic agreement signed between the Dubai Diamond Exchange and the Israel Diamond Exchange is an important one that unlocks huge potential for both parties,” stated

 Ahmed Bin Sulayem, Executive Chairman of the DMCC and Chairman of the Dubai Diamond Exchange. “DMCC is tasked by the Government of Dubai to drive global commodities trade through Dubai, and this agreement will attract businesses to the emirate as well as boost the regional and international trade of this precious stone.”

“The United Arab Emirates and Israel are home to two of the Middle East’s most dynamic and innovative economies. This agreement paves the way for further collaboration across a range of commodities in what is a very exciting time for development in the region. We look forward to working alongside our partners in Israel,” he added.

The Dubai Multi Commodities Center (DMCC), home to the Dubai Diamond Exchange.

THE ABRAHAM ACCORDS

The normalization agreement, which have been called the Abraham Accords in reference to the Jewish and Muslim nations’ common heritage, call for peace, diplomatic relations and full normalization of bilateral ties between the United Arab Emirates and the State of Israel.

According to the agreement, the two countries will exchange resident ambassadors and conduct diplomatic and consular relations. This will include air travel between the two countries, with the national carriers El Al, Emirates and Etihad all reportedly planning to open regular flights between Tel Aviv, Dubai and Abu Dhabi.

The agreement also references cooperation in innovation, trade and economic relations, with the understanding reached between the Israeli and Dubai diamond bourses, between which informal but friendly relations have existed for many years, being the first tangible proof of the new Middle East reality.

The total value of rough and polished diamonds traded in Dubai exceeded $23 billion in while the value of the trade in Israel was about $10 billion.

SEARCH DIAMONDS
Search