According to Dubai’s Government Authority on commodities trading and enterprise, the DMCC has reduced business set-up fees by 50% to entice international diamond firms for DMCC company formation in Dubai. The 50% discount went into effect this past August and will expire at the end of September of this year. Furthermore, new company registrants will be given a 1-year membership in the DDE (Dubai Diamond Exchange) community of more than 1,000 of the top diamond firms in Dubai.
The Minister of State for Foreign Trade and UAE Ministry of Economy, His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, stated that precious metals and stones trading is a key component of the country’s economic investment diversification agenda. The UAE Ministry of Economy is currently focusing their efforts on generating a new stage of economic development and growth by making the diamond trade a priority. He went on to say that the DMCC should be applauded for their ambitious vision and their efforts, as Dubai has turned a period of turbulence into an opportunity.
Though globally, diamond industry is passing through a volatile time, yet after nearly 2 decades of expeditious growth, Dubai has quickly evolved into the leading hub for the world’s diamond trade. In the 15-year period from 2003 to 2018, the total value of polished and rough diamonds rose from $3.6 billion or Dhs 13.2 billion to $25 billion or Dhs 91.8 billion. The DMCC also revealed their plans for assisting Dubai in becoming the leading international trading hub for colored stones and Laboratory Grown Diamonds (LGD) as well.
While many perceive the current turbulence in the diamond industry as a threat, Dubai sees this as a grand opportunity to promote new business setup in Dubai. For the UAE, the key element of their approach to business is adaptability. The Dubai government is hopeful that the reduced set-up fees will help to eliminate the business entry and supply barriers by supplying the support businesses need during these challenging times. It is widely felt that the future of diamonds is in Dubai.
Chairman of Dubai Gold and Jewellery Group, Tawhid Abdullah had said that Dubai has managed to traverse the difficulties, for UAE to become synonymous with the bustling diamond trade. Even though global trade in diamonds is low-key as of now, Dubai has taken a head start and with DMCC playing a major role in securing stability in precious gems and metal trade.
When the DMCC was established in 2002, it dedicated its efforts to developing an ecosystem of facilities, services, and a state-of-the-art infrastructure that would attract, encourage, and promote diamond trading in Dubai. Thanks to the growth of the DDE, considered by many to be the largest diamond tendering facility in the world, Dubai is now the heart of the diamond trade in this geographic region. Additionally, the DMCC has welcomed Lumex, a company that produces laboratory-grown diamonds, into the Free Zone’s LGD community.
CEO and Co-Founder of Lumex Vishal Mehta recently shared his appreciation for being invited to join the DMCC and praised their efforts at promoting the diamond trade in Dubai. Mehta went on to say that the support being provided by the DMCC has enabled their company formation in Dubai and throughout the Middle East. There are now over 1,000 diamond company members in the DDE. The DMCC is also promoting memberships for laboratory-grown diamond companies. In fact, the DMCC held the very first LGD trade fair at the DDE and had over 50,000 carats on display.
