The Gulf Perspective

Amit Dhamani is a well-known and influential figure in the gem and jewerly circle in the Middle East. He is an insider and knows the pulse of the business. His opinions are invaluable.

Amit Dhamani (MD, Dhamani Jewels, Dubai, UAE) writes:

The Gulf region, comprised of the United Arab Emirates (UAE), Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman, is one of the fastest rising commercial centers on the global map. The state of Dubai, in the UAE, has embarked on an aggressive growth strategy by liberalizing its economy and reaching out to global partners in many key industries, making it the gateway to the Gulf. With gross domestic product (GDP) growth of 9.4% last year, the second highest in the world, Dubai has become a major upscale tourist and business destination for travelers from Europe, Russia, India, and neighboring Asian countries.

More than 120 shipping lines and 105 airlines connect Dubai to 145 + global destinations. Supported by a superior transportation, telecommunications, and finance infrastructure, Dubai is well equipped to manage some of the world’s most sophisticated and ambitious projects to date.

Liberal tax and property ownership laws have attracted wealthy expatriates, creating a business boom. Out of a population of 1.2 million, 60% are from 140 different nations. Fueled by oil and the booming real estate and retail sectors, the region has one of the world’s highest per capita incomes; coupled with the growth of tourism and the population’s affinity for gems and precious metals, its jewelry market has grown at a faster rate than anywhere else in the world. Jewelry sales reached $15 billion in the Gulf countries last year, of which diamond jewelry sales accounted for $3.5 billion; these figures are growing by leaps and bounds.

In Dubai alone, estimated retail jewelry sales were $3billion last year, with half of this for diamond jewelry. The average per capita jewelry sale was $2500, the world’s highest by far. With approximately 850 retail jewelry outlets in Dubai at present, and tourists accounting for 54% of jewelry purchases, these figures are bound to continue rising in the future; it is estimated that 40 million tourists will be visiting this region by 2015, up from 9 million presently.

Consumers in the Gulf region tends to prefer diamonds in all shapes at 0.50 ct and above, usually D-I color and VVS-SI clarity ranges, with certificates from international labs. Diamond watches are quite popular, especially international brands. As with many other major markets, the favored colored stones are emeralds, rubies and sapphires. Among the many retailers already operating in the Gulf countries are world renowned houses such as Tiffany, Cartier, Bulgari, De Beers, Chopard, Dhamani, and Damas.

With the establishment of the DMCC (Dubai Multi Commodities Center), the Dubai Gold and Commodities Exchange, the Dubai Diamond Exchange, the Dubai Gem Certification, and the Dubai Cut Diamond, Dubai has become a major global player. DMCC is the arm of the Government of Dubai that is helping create market opportunities for all businesses. To date, 850 international companies have listed with the DMCC. The 64-floor Al-Mas Tower, which is scheduled form completion by the end of 2007, is solely dedicated to diamond traders, local and international. All told, Dubai’s jewelry retail space is expected to triple in the next five years.

Dubai also hosts international jewelry shows and exhibitions year-round, with the ICA congress set to be held there in 2007.These events serve as yet another platform for international jewelry companies to make their way into this market.

With new developments taking place at a rapid pace, Dubai and the Gulf hold enormous growth potential for all international businesses. Dubai welcomes the world’s gem and jewelry industry to be a part of history in the making.