Dubai Strengthens Its Global Diamond Hub Status

Dubai Jewellery News: Dubai has long been known as the City of Gold, but in recent years, it has also positioned itself as a formidable player in the diamond world. Once regarded primarily as a re-export center, the emirate has now emerged as one of the top global hubs for both rough and polished stones. The latest figures highlight that Dubai’s diamond trade reached nearly USD 41.7 billion in 2024, showing growth even as other centers like Antwerp grapple with declining volumes. In fact, this Dubai Jewellery News report reveals that polished diamond trade, once overshadowed by rough supply, is now experiencing significant traction in the emirate.

Dubai is the new diamond capital of the world
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How polished stones are reshaping the trade landscape

For years, Dubai was heavily dependent on rough stones arriving from Africa and routed through India for cutting and polishing. However, that balance is shifting. More polished stones are now flowing through the Dubai Diamond Exchange, supported by a combination of industry confidence, transparent regulations, and advanced tender systems. Auctions by major firms such as Stargems, Koin International, and Grib Diamonds are drawing traders from across the globe, while India’s pipeline constraints have further funneled liquidity into Dubai.

Why Dubai is attracting global players

The reasons behind this transformation are both structural and strategic. The DMCC has created an ecosystem that emphasizes low taxes, secure logistics, and cutting-edge infrastructure. The Dubai Diamond Exchange has hosted dozens of high-value tenders in the past year, and the emirate’s geographic position between producing nations in Africa and consuming markets in Asia gives it a natural edge. Additionally, the gradual pivot of traders away from traditional centers like Belgium and Israel, coupled with Dubai’s aggressive marketing, has positioned the city as the fastest-growing polished diamond hub.

Dubai is not becoming the transit and processing hub for diamond of all kinds from around the world
Image Credit: Stock Shots

The growing appeal for retailers and investors

This surge is not just a matter of wholesale trade. Local retailers have reported an increase in consumer demand for diamonds as high gold prices have dampened appetite for heavier 22k jewellery pieces. Shoppers are opting for diamonds as a more affordable luxury that retains prestige, and international buyers are increasingly using Dubai as a sourcing base. Investment houses are also showing interest in diamond-backed financial products, which further supports the market.

What the future holds for Dubai’s diamond crown

With polished trade now competing head-to-head with rough volumes, Dubai is setting its sights on dominating the entire value chain. From tender houses to retail malls, the emirate is carefully building an ecosystem that ensures long-term sustainability. Experts predict that within the next five years, Dubai could overtake Antwerp entirely in polished diamond volumes, marking a dramatic reshaping of the global diamond industry. This transformation will not only elevate Dubai’s role as a jewellery capital but also redefine where the world’s most important stones are traded and priced. The momentum already achieved suggests that this crown may be Dubai’s to keep for decades to come.

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