Emirates NBD, Dubai’s largest banking group, announced on Monday plans to double its diamond financing book by 2025 in line with its support to Dubai’s five-year plan to increase foreign trade to Dh2 trillion.
The bank said in a statement it has collaborated with Dubai Multi Commodities Centre (DMCC) on the project to leverage its expertise and experience in shaping the global diamond trade.
“The collaboration is set to boost Dubai’s economic transformation into the world’s number one diamond trading hub and support the economic diversification strategy of the UAE. It further aligns with Dubai’s five-year plan to increase Dubai’s foreign trade to Dh2 trillion as the emirate strengthens its position as a global business hub,” the bank said.
DMCC said it is entering the agreement to offer strategic advice and help promote Emirates NBD’s financial products to UAE diamantaires, especially more than 1000 registered members of its Dubai Diamond Exchange (DDE), home to the world’s largest diamond tender floor located in Almas Tower in Jumeirah Lakes Towers, Dubai.
The statement said Dubai diamond traders would benefit from this collaboration through increased financing opportunities, while accessing a trusted framework for all aspects of the diamond trade through DMCC. “This would include a globally accepted governance and trade practice framework, dispute resolution and access to new markets.”
Dubai has transformed into the world’s second-largest diamond trading center, with diamond trade in the city growing $ 3.5 billion in 2003 to $17.5 billion in 2020.
Ahmed Al Qassim, senior Executive vice-president and group head, Corporate and Institutional Banking at Emirates NBD, said the significant initiative would boost the UAE’s flourishing diamond industry. “As a leading UAE bank, Emirates NBD is well-positioned to deliver trusted financial services to global diamond traders looking to leverage Dubai’s established infrastructure and business-friendly regulations to grow and expand their business. The collaboration is in line with our commitment to support industries critical to Dubai’s ongoing economic transformation as the emirate realizes its ambition to become the world’s leading diamond trading hub.”
Ahmed bin Sulayem, executive Chairman and chief executive officer, DMCC and chairman, Dubai Diamond Exchange, said Dubai’s current position as a global leader in both the gold and diamond markets is intrinsically tied to the UAE Cabinet’s decision to learn from the past mistakes of other global economies and reverse the five percent value-added tax for investors at a wholesale level in May 2018. “It is for this reason Dubai is close to becoming the world’s largest diamond hub, having significantly closed the gap with Antwerp for rough and polished trade volumes. Without this critical decision, Dubai wouldn’t even be in the conversation,” he said.
Sulayem said thanks to the efforts of banks such as Emirates NBD, Dubai is also making financial access easier for diamantaires, resulting in an exciting time for the international diamond trade. “We are certain that the same success story can be replicated for related businesses such as colored gemstones and lab-grown diamonds, which are currently non-existent, providing a similar level of support is granted,” he said.
Source: https://www.khaleejtimes.com/business/banking-finance/emirates-nbd-seeks-to-double-diamond-trade-financing-by-2025
