Emirates NBD has announced plans to increase financing available to the Dubai diamond industry and double its diamond financing book in the UAE by 2025.
Dubai’s largest bank said 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 bank said in a statement that 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 AED2 trillion as the emirate strengthens its position as a global business hub, the statement added.
DMCC enters 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.
With this collaboration, Dubai diamond traders will benefit from increased financing opportunities, while accessing a trusted framework for all aspects of diamond trade through DMCC.
In just over 20 years, Dubai has transformed into the world’s second largest diamond trading centre, with diamond trade in city growing significantly over the years, from $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, said: “We are delighted to join hands with DMCC on this significant initiative which will boost the UAE’s flourishing diamond industry.
“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 CEO, 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.”
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