Trading Diamonds in the Middle East

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Trading Diamonds in the Middle East

• Youri Steverlynck
• CEO Dubai Diamond Exchange

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Diamonds the Middle East

• The Middle East Market
• 9/11, changes opportunities
• Trading diamonds in Dubai
• Regulations
• Infrastructure
• Services

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The Middle East Market
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The Middle East market
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ME Economies at a glance
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High quality of life

• One of the highest Purchasing Power per Capita in
  the world
• Diamond Jewelry Market size US5.1 billion in the
  Gulf Region

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ME accounts for 8 of global diamond consumption
KSA 1.3 billion Turkey 700
million UAE 650 million Rest ME
300 million Total 2.95 billion
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9/11, changes opportunities
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9/11 changed market habits

• Unease with traveling overseas
• Need for a one stop shop in the Middle East for
  wholesalers retailers
• Suppliers forced to move closer to their
  customers

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No regional diamond hub for ME
Antwerp
New York
Ramat Gan
?
Hong Kong
Mumbai
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Trading diamonds in Dubai
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Facts Figures - wholesale trade

• UAE rough diamond trade reached 3.9 billion in
  2006
• UAE polished diamond trade touched 3.4 billion
  in 2006
• Over 300 diamond companies are registered with
  DMCC
• Variety of specialised service providers

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Dubai open economy

• No income or corporate tax, no VAT
• 100 foreign ownership allowed, i.e. no local
  partner requirement in freezones
• Free repatriation of capital
• Business driving regulations

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Customs Advantages

• Absence of VAT System
• Only KP Participant member and the only point of
  entry for Rough Diamonds in the Gulf
• Exemption of Custom Duties on Rough and Polished
  Diamonds
• Member of GCC Customs Union

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MEs relatively closed markets
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Supporting service economy

• Shipping Agents
• Banking
• Education
• Certification
• Security / insurance
• Manufacturing, sorting, boiling, etc.

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Dubai, City of Gold

• City of Gold brand
• 850 jewelry retail outlets

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Dubai tourist destination

• Dubai welcomed 7 million tourists in 2006
• Tourism is expected to grow to 15 million by 2010

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Dubai tourist destination

• 9 out of 10 tourists purchase Jewelry
• Jewelry Sales in all categories in UAE hit 3
  billion in 2006

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Almas Tower to open in Dec 2007

• 64 floor landmark building dedicated to serving
  the diamond trade
• 400 regional and international diamond companies
• 2.000 m2 Dubai Diamond Exchange
• Business center Retail area
• Currently constructing 48th floor

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New Dubai Diamond Exchange
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Concluding Dubai completes

• Prime source for rough and polished diamonds
• Competitive business environment allowing to
  optimize group activities
• Gateway to Middle East market
• Jewelry retail destination

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Your Gateway to the Middle East