The eighth India Global Connect (IGC) virtual business networking meeting held by GJEPC on 18th August initiated a dialogue between leading jewellery retailers from Saudi Arabia and top Indian jewellery manufacturers.
Organised with the support of the Indian Embassy in Saudi Arabia, the meet helped Indian participants gain crucial insights into Saudi jewellery preferences, and enabled Saudi retailers to gain a better perspective of India’s gem and jewellery manufacturing capabilities.
The Saudi participants also highlighted certain challenges such as difficult visa procedures and a dearth of direct gem and jewellery imports from India, which they indicated, may be holding back bilateral trade growth.
In his opening remarks, GJEPC Vice Chairman Vipul Shah noted that Saudi Arabia was India’s fourth-biggest trading partner after China, USA and Japan, and the kingdom accounts for 18% of India’s crude oil requirements. Shah said, “Gem and jewellery trade between India and Saudi Arabia stood at $388 million in 2019-20. I’m confident that the India Global Connect platform would help initiate a dialogue to explore trade opportunities that would further increase business.”
N. Ramprasad, Deputy Chief of Mission, Indian Embassy in Saudi Arabia, stated, “Gems and jewellery is an important component of trade between the two countries and there is wide scope for bilateral expansion of trade. Saudi Arabia is an important destination for Indian gems and jewellery as our designs are highly popular among consumers here.”
Dr. Srikar Reddy, Joint Secretary, Ministry of Commerce & Industry, Government of India, noted, “The Saudi Arabia economy is recovering well with 4.3% growth in Saudi’s non-oil trade expected this year. Gem and jewellery exports to the Gulf Cooperation Council (GCC) countries were around $10 billion, but went down to $3 billion last year due to the pandemic. But things are looking good and the economies of UAE and Saudi are showing positive signs of growth.”
The Saudi Arabia panelists were: Abdul Rahman Al Shak’h of Abnaa Ali Fahad Al Shk’ha & Co, Mustafa Eshak of Hasan Al Nemar, Naseer Quhatani of Al Quhatani, Ramesh Vora of Bafleh Gold, Vijay Soni of SIBN, Abdullatif A. Al Sagha of Malak Jewellery, Adeeb Mohammed Idress of Green Emerald Jewelry, Meshal Al Debyan of Lapis Jewelry, Hussein Bahamdein of Abdullah Bahamdein, and Nezar Jamil Mukhtar of Al Romaizan Gold & Jewelry Co.
The Indian panel consisted of Milan Choksi of Moksh Jewellery & PMBD sub-committee Convener, Mansukh Kothari of Vasupati Jewellers & Events sub-committee Convener, Anish Birawat of Chain & Chain, Konal Doshi of Modern Impex, and Sunil Jain of Dalmaaz.
The key takeaways from the discussion were:
Indo-Saudi total gem and jewellery trade has declined from $388.23 million in 2019-20 to $49.28 million in 2020-21.
Saudi Arabia’s worldwide gem and jewellery imports are worth $1.9 billion, of which India’s share is merely $73.37 million.
Gem and jewellery shipments from India could come directly to Riyadh rather than via third countries like UAE.
The countries should ease travel procedures such as offering multiple entry E-visas. The Indian Embassy clarified that once the registration of biometrics is completed, India offers a 5-year multiple entry visa for Saudi businesspersons and their families.
If Indian investment in gems and jewellery in Saudi Arabia is similar to that of the Almas tower in Dubai, it will enhance the level of trade between the two countries. India is a major supplier of diamonds to Saudi Arabia.
India’s gem and jewellery industry should increase promotions and visibility in Saudi Arabia. The last Indian trade delegation visited the kingdom in 2004. India can also support the setting up of branded, trustworthy laboratories in Saudi Arabia. GJEPC will be a one-stop for all of Saudi jewellers’ needs.
India imports gold bars from Saudi Arabia and exports gold jewellery back to the Middle Eastern kingdom. The two can explore doing a barter system of exchanging gold for jewellery by working out a duty structure for job work.
The entire world is moving towards lightweight jewellery including Saudi Arabia, where consumer tastes are evolving and moving towards wearable daily wear jewellery. Saudi Arabia is not a strong market for silver jewellery.
Saudi Arabia has a big tourist market during the annual Hajj pilgrimage.