Dubai’s Diamond and Coloured Gemstone Trade Hits Record Highs

Dubai Jewellery News: Dubai has cemented its reputation as one of the world’s leading centers for the global diamond and precious stones industry after recording its strongest-ever annual trading performance in 2025. The emirate’s diamond trade surged to a record value of $41.7 billion, reflecting the growing confidence of international producers, manufacturers, traders and jewellery buyers who continue to rely on Dubai as a vital gateway connecting markets across Africa, Asia, Europe, the Gulf and the United States.

The remarkable achievement represents a 16.2 percent increase over the $35.8 billion recorded in 2024, adding approximately $5.8 billion in trade value within just one year. This Dubai Jewellery News report highlights how the latest figures not only surpassed Dubai’s previous record of $40.9 billion, set in 2011, but also underscored the emirate’s resilience in an international market that has faced fluctuating demand, price pressures and changing consumer preferences.

Record Value Matched by Historic Trading Volume

Equally impressive was the volume of diamonds passing through Dubai during the year. Physical diamond trade climbed to an unprecedented 359.5 million carats, representing an annual increase of 42.5 percent. It marked the first occasion that Dubai achieved simultaneous records for both the value and physical volume of diamond transactions, reinforcing its expanding role within the international supply chain.

Natural diamonds continued to dominate the market, generating $39.9 billion, or nearly 96 percent of the emirate’s total diamond trade value. Despite ongoing challenges affecting parts of the luxury jewellery sector, mined diamonds remain the backbone of Dubai’s precious stones business and continue to attract significant global investment.

Natural Diamonds Continue to Drive Growth

Trade in natural rough diamonds remained particularly robust throughout 2025. Dubai handled 205.2 million carats of rough stones during the year, the second-highest volume ever recorded by the emirate and approximately 34 percent higher than the previous year.

The increase reflects Dubai’s growing importance as an intermediary linking diamond-producing nations, particularly across Africa, with major cutting and polishing centers such as Surat in India before the finished stones reach jewellery manufacturers and retailers around the world.

Natural polished diamonds also posted exceptional growth, with trade reaching $18.7 billion, an increase of nearly 25 percent compared with 2024. Since 2020, the value of polished diamond trade through Dubai has climbed an extraordinary 246 percent, while the average value per carat has multiplied several times, highlighting the rising value of premium polished stones moving through the emirate.

Dubai Strengthens Its Position in the Global Supply Chain

The latest figures illustrate how dramatically Dubai has expanded its role within the international diamond industry over recent years. Since 2020, total diamond trade through the emirate has increased by almost 140 percent in value, while physical trading volumes have doubled.

Looking over the past decade, Dubai’s diamond trade has grown by 63 percent in value and 44 percent in volume, reflecting years of strategic investment in specialized infrastructure, logistics and financial services dedicated to the precious stones industry.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of the Dubai Multi Commodities Centre (DMCC), said the latest performance demonstrated the success of a long-term strategy aimed at building one of the world’s most connected, transparent and efficient precious stones trading ecosystems.

He noted that investments in infrastructure, regulatory certainty, specialized trading services, financing options and efficient logistics have all contributed to Dubai’s continued rise as a preferred global marketplace.

World-Class Infrastructure Supports Expansion

Much of Dubai’s success is attributed to the integrated services operating within the DMCC ecosystem. The Dubai Diamond Exchange provides specialized tender facilities for rough and polished stones, while traders benefit from secure transportation, customs support, grading laboratories, financing institutions and technology providers all located within the same commercial hub.

Dubai’s strategic geographical location has also become a major competitive advantage. Efficient international air connections and sophisticated re-export infrastructure enable diamonds to move quickly between mining regions, manufacturing centers and consumer markets, reducing delays and improving supply chain efficiency.

Industry Faces Challenges Despite Strong Performance

Dubai’s record-breaking results come at a time when parts of the global natural diamond industry continue to face significant challenges.

Several mining companies have reduced production as inventories increased and rough diamond prices softened following the post-pandemic boom. Demand from China has remained relatively subdued, while laboratory-grown diamonds continue gaining popularity due to their affordability and increasing acceptance among younger consumers.

Mining giant De Beers has responded by adjusting production levels, implementing cost-cutting measures and temporarily suspending operations at its Venetia mine in South Africa as market conditions remain difficult. Nevertheless, strong consumer demand in the United States, together with expanding luxury jewellery markets in the Gulf region and India, has helped sustain premium natural diamond sales.

Colored Gemstones Reach New Heights

Beyond diamonds, Dubai’s coloured gemstone sector also enjoyed an outstanding year, reaching a record trade value of $1.1 billion, representing an impressive 48 percent increase compared with the previous year.

Imports of colored gemstones climbed 68.8 percent, while re-exports rose 33.5 percent, reflecting increased sourcing activity as well as stronger international distribution through Dubai’s trading network.

Meanwhile, synthetic and industrial diamonds continued to expand their presence, accounting for approximately 39 percent of total diamond trading volume. Although their contribution to overall trade value remains significantly smaller than natural diamonds, laboratory-grown stones are increasingly used in jewellery, electronics and industrial applications, prompting greater emphasis on product classification, certification and transparent disclosure practices across the industry.

Dubai’s record-breaking performance demonstrates that the emirate continues to strengthen its position as one of the world’s most influential precious stones trading centers. While the global diamond industry is navigating economic uncertainty, evolving consumer behavior and increased competition from laboratory-grown alternatives, Dubai has successfully diversified its marketplace while reinforcing the dominance of natural diamonds. The simultaneous growth in diamond and colored gemstone trade reflects a resilient, well-connected ecosystem that is attracting participants from every stage of the global supply chain. With continued investment in infrastructure, transparency and international partnerships, Dubai appears well positioned to maintain its leadership in the years ahead, further enhancing its reputation as a premier global hub for precious stones.

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