By Staff writer
National Bank of Fujairah establishes team focused on financing both manufacturers and traders
National Bank of Fujairah (NBF) has announced the establishment of a specialised team focused on financing manufacturers and traders of rough and polished diamonds.
Part of NBF's precious metals unit, the diamond financing team has recently registered a new office at Almas Tower, long the centre of Dubai's diamond trade, and is expected to start operations there in the summer.
NBF said in a statement that its diamond financing team will complement the bank's focus on the precious metals and jewellery sectors.
The move comes as the Dubai Diamond Exchange, a regional trading platform overseen by the Dubai Multi Commodities Centre (DMCC), valued the emirate's diamond trade at nearly $35 billion in 2014.
The bank said it has brought on board industry experts from Antwerp Diamond Bank's operations in Dubai to run the business, which will primarily involve providing short-term purchase and sales financing to established diamond players as they ship raw diamonds from producing nations in the African and European continents to manufacturers in India and the Far East.
Vikram Pradhan, NBF's head of corporate & institutional banking, said that the launch of the bank's diamond financing business coincides with the rise of Dubai as one of the diamond capitals of the world.
"With Dubai's strategic location on global trade routes, its open business climate and modern infrastructure, it's no wonder that the city has quickly taken its rightful place as one of the leading diamond centres in the world.
"As a local bank with competencies in corporate banking, trade finance as well as precious metals, introducing a dedicated diamond financing service was simply a logical extension of our business mix and commitment to the local economy."