This July Israel’s diamond industry witnessed a significant downturn in various trade metrics, primarily influenced by global market dynamics. Reports highlight that Israel’s rough diamond trade experienced a substantial year-on-year contraction of 46% during July. This downturn was paralleled by a 44% decline in exports over the same period.
Taking a broader view encompassing the timeframe from January to July 2023, the statistics depict a consistent decline in the diamond trade sector. Net imports of rough diamonds demonstrated a 45% reduction year-on-year, amounting to $661 million. The decline trend extended to rough diamond exports as well, witnessing a notable decrease of 53% to $515 million during the same period. The contraction persisted in July, registering a 44% decrease in exports.
Zooming in on the details, cumulative net imports spanning from January to July 2023 showed a decline of 24%, resulting in a total value of $1.57 billion. July continued to witness a slump in net imports, experiencing a 34% reduction. Furthermore, the overall exports of diamonds during the January to July period reached $1.9 billion, marking a significant year-on-year drop of 25%. This downward trajectory was further emphasised in July, which saw a trade contraction of 31%.
A noteworthy aspect that has emerged amidst these challenging circumstances is Israel’s growing reliance on trade with the United Arab Emirates (UAE). This trade relationship has now expanded to account for a substantial 27% of Israel’s aggregate imports and exports of rough diamonds, underscoring the UAE’s significance as a pivotal partner in the diamond trade.
Commenting on the prevailing conditions, Ofir Gore, the Diamond Controller at the Ministry of Economy and Industry, offered his insights. He explained that the challenges witnessed within Israel’s diamond industry are harmonious with the broader global trends that have left the global diamond sector grappling with uncertainties. Gore asserted that the collective data underscores the ongoing crisis within the global diamond industry, a narrative that is reflected in Israel’s trade performance.
Nevertheless, amidst the prevailing challenges, there remains a glimmer of hope. Gore expressed an optimistic outlook, suggesting that the global diamond market might gradually rebound as the year progresses. Industry estimates have pointed to potential signs of recovery that could start becoming evident in the final quarter of this year.