| Page 2 of 2 < |
Jewish Diamonds Find Favor in Arab Dubai
"Dubai is quickly growing to become a very important center for diamonds," Ernest Blom, president of the World Federation of Diamond Bourses, said by phone from Jerusalem.
The good Arab-Jewish vibes extend across the Atlantic. In June, the largely Jewish New York Diamond Dealers Club on Manhattan's 47th Street feted Ahmed bin Sulayem, deputy chairman of the Dubai Diamond Exchange, for his contribution to the industry.
  Bharat Narola displays diamonds at his office in Dubai, United Arab Emirates July 5, 2006. Arab and Israeli diamond traders are touting Dubai as the first forum for Arab-Jewish cooperation in decades, but others say the Arab Emirate is eyeing a share of the lucrative Jewish-dominated diamond trade. (AP Photo/Kamran Jebreili) (Kamran Jebreili - AP) PHOTOS |
Last year the Emirates became the fifth largest diamond importer from Belgium, with a 49 percent jump in demand. Belgium handles 80 percent of the world's rough diamonds.
Only the United States, Hong Kong, Israel and Switzerland were ahead of Dubai, according to HRD, the organization representing Antwerp's diamond industry.
Some view Dubai's emergence on the diamond scene as a challenge to Antwerp, the traditional center of the world's diamond industry.
In February, HRD submitted recommendations for staying competitive. It said new regulations, designed in part to stop the use of diamonds to finance African wars, were choking Antwerp's profits.
Traders say Dubai has less red tape and is closer to the expanding Chinese, Arab and Russian markets.
It also competes directly with Antwerp, serving as a gateway for India's burgeoning diamond output. For example, Rosy Blue diamonds, a leading Antwerp-based business, is considering moving its headquarters to Dubai, said Pearl Chandrawansa, who heads the company's Dubai operations.
"So many questions are being asked in Antwerp, people are getting fed up and looking at Dubai as an alternative," Chandrawansa said.
HRD spokeswoman Abboud agreed that it is easier to ship diamonds through Dubai. But officials here insist their policies are not lax.
"The same rules applied in Antwerp are applied here," said Jamsheer. "We closely monitor traders in Dubai, though we don't publicize it."
___
Associated Press writers Gabe Ross in Jerusalem and Jim Krane in Dubai contributed to this report.
___
On the Net:
Dubai Diamond Exchange: http:/
