Big is better at Dubai International Jewellery Week — happening at the World Trade Centre in Dubai.
Chinese clientele swarms International Jewellery Week happening in Dubai, while overall customer preferences trend strongly towards ever-larger diamonds, according to a major diamond seller.
“The diamond size in terms of jewellery design is getting bigger and customers are looking for larger types of diamonds,” Amit Dhamani, CEO Dhamani Diamond who’s currently showcasing the company’s products at the Dubai International Jewellery Week told the Youtube-Channel of Gerard Al-Fil, a Dubai-based financial journalist.
This much awaited exhibition has seen many African countries participating, and the GCC is out in full force at this event. Dhamani says that Chinese buyers form the largest percentage of his clients; hence he has employed Chinese staff in a bid to serve them better.
According to industry data, the soaring growth of the diamond market in the key emerging markets of China and India occurred this year in the midst of a wider economic malaise. The third annual report on the global diamond industry prepared by Bain & Company in association with the Antwerp World Diamond Centre (AWDC) say they see a balanced market over the next four years, with a growing gap between supply and demand longer-term.
“The rough-diamond market is expected to remain balanced from 2013 through 2017. From 2018 onward, as existing mines get depleted and no major new deposits come online, supply is expected to decline, falling behind expected demand growth that will be driven by China, India and the US.”
Over the next decade the report says that supply and demand are projected to grow at an annual compound rate of 2.0 percent and 5.1 percent, respectively.
“The supply-demand outlook carries different implications for industry players at different points along the value chain, and it will impact the way they manage their business activities over the next four years and in the longer run,” it adds.
The AWDC report says that Diamond jewellery retailers will be looking to exploit the rising demand for diamonds during this period. Their key test is to get an ample and regular supply of polished diamonds in the range of sizes, shapes and colours matched to consumer demand.
The UAE and the GCC region — Economic Stats
Because diamonds are a luxury item, demand growth is expected to parallel GDP growth, especially in the UAE on the back of its winning bid to host Expo 2020. According to the Dubai Economic Department, the GCC economy is set to hit a record high of USD 1.46 trillion, achieving 4.6 percent real growth, with the UAE GDP set to climb to USD 358 billion in 2012.
Gold topped the list of Dubai’s imports with AED 25.6 billion from January to March 2012, followed by Diamonds at AED 13.9 billion and Jewellery and Precious Metals at AED 11.7 billion, reveals Dubai Customs.
Gold is also the number one product to be exported from Dubai during the first half of 2012 at AED 18.6 billion, followed by Jewellery and Precious Metals at AED 1.4 billion.
A total of AED 10.2bn worth of gold and jewellery was purchased in the UAE in 2012. UAE residents and tourists spent a total of USD 408 million (AED 1.5 billion) on jewellery in the fourth quarter of 2012 as compared to USD 385 million (AED 1.4 billion) for the same period the year before. This is an increase of six percent for the quarter, year-on-year
It is estimated that the GCC is home to nearly 400,000 millionaires, with a total estimated wealth of approximately USD 4 Trillion.
Watch and jewellery makers have hailed Middle East consumers’ penchant for spending fortunes on showpiece items this year.