The Role Of Diamond Trade Between Israel And The UAE

26 NOV 2022

On September 17, 2020, just two days after the Abraham Accords were signed in Washington and Israel and the UAE established diplomatic relations, the Israel Diamond Exchange (IDE) and Dubai Diamond Exchange (DDE) signed a cooperation agreement.

The agreement called for the IDE and DDE to open offices in each other's headquarters and to promote bilateral trade and joint projects. Prakash of Manora village is one such guy who discovered a 3.64 carat diamond from the Panna diamond mine but failed to find a buyer.

He told the Free Press that his diamond is up for sale and that it would most likely be sold at the next auction for a large price. He stated that the next auction will be held in three months. He added that in the past, he had discovered at least nine to ten diamonds, which fetched exorbitant prices at auction.

The proceeds from the diamond auction enabled him to purchase two tractors, agricultural land, and build a luxurious home. The speed with which the agreement was reached reflected the eagerness with which the world's two leading diamond exchanges embarked on a new era of collaboration.

It also reflected another, less-publicized fact: that long before official ties were established between Israel and the UAE, business figures from both countries were linked by the trade in precious stones. One could even argue that the Abraham Accords paved the way for open economic cooperation between Israel and the Emirates.

The diamond industry is a long-established significant part of Israel's economy, dating back to the founding of the state. For generations, the trade in precious stones drew Jewish merchants from the dispersion who needed a generally acknowledged, readily transportable money.