DUBAI, 18th September, 2023 (WAM) — The Dubai Multi-Commodity Center (DMCC), the world’s largest free zone and the Dubai government’s authority for commodity trade and business, today published a special edition of its Future of Trade report series. , focusing on laboratory-grown diamonds (LGD), the global rise of this emerging technology, and its transformative impact on the industry.
The report, titled “A New Era: The Future of Lab-Grown Diamonds,” is the result of industry experience and in-depth analysis. It provides a strategic compass for stakeholders navigating the lab-grown diamond landscape and examines the dynamics that have led to the industry’s meteoric rise in recent years.
The LGD industry has reached a remarkable global retail value of $12.24 billion in 2022, establishing itself as the fastest growing segment in the jewelry sector and expanding into new areas such as semiconductors and quantum computing.
The report concludes that Dubai has established itself as a key player in the LGD trade and is poised to lead the way in the next chapter of innovation and growth in the industry. The report highlights key findings that define the industry’s trajectory, propelling LGDs from a market niche to a technological powerhouse.
Ahmed bin Sulayem, Executive Chairman and CEO of DMCC, said: “The LGD industry is going through a transition phase, adapting to slowing growth, disruption and market changes in the United States, while exploring untapped markets such as China, Europe, India and the Middle East. “The rise of the LGD industry symbolizes the intersection of technology and commerce, and the potential it holds is monumental.”
“As a global trade hub, Dubai offers a strategic location for LGD innovation and trade, envisioning a future where LGDs redefine industries and sustainability standards. Leveraging the world-class infrastructure and service facilities of the DMCC, together with our expertise in commerce and advanced technology “We are delighted to see Dubai position itself as a pioneering force in this era of transformation,” he added.
The collective desire to chart a future-oriented roadmap for the industry prompted key stakeholders to come together at the first LGD Symposium organized by the DMCC in July 2023. The LGD Symposium served as a timely platform for knowledge sharing , bringing together influential figures at the forefront of the industry. The symposium examined in detail the factors critical to the success of the LGD industry and explored how a profitable technology product could thrive in the luxury market.
Building on the valuable symposium keynote, the Future of Trade report made a number of important recommendations aimed at driving the evolution of the sector and shaping the next phase of growth:
Recognize that LGDs are a technology sector: the price of LGDs should be based on the technology they represent, which would position them as value-added products rather than commodities.
Prioritize product innovation: Investing in research is essential to reduce production costs and drive innovation in diamond and jewelry design, while harnessing the potential of LGDs in high-tech applications.
Rethink supply chains: By moving to demand-driven supply chains, LGD companies can optimize operations, reduce inventory costs, and accelerate the transformation of raw materials into finished products.
Focus on the value of the end product: Focusing on the value of the entire end product rather than individual components will allow for partnerships that consider the entire value proposition.
Demonstrate leadership and innovation: Lead the industry by leveraging intrinsic strengths, marketing LGD products based on their unique attributes and setting sustainability benchmarks.
The DMCC has been instrumental in positioning Dubai as one of the largest diamond trading centers in the world. In line with its mandate to enable and attract new trade flows to the Emirate, DMCC leverages this leadership position in the diamond industry to become a global hub for the LGD market segment.
LGD trade grew by more than 125% in Dubai during 2022, with total imports and exports of around $1.5 billion, thanks to the state-of-the-art infrastructure and specialized facilities provided by the DMCC to support the growth of the industry. Today, the DMCC is home to more than 30 LGD companies.
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