Like innovations in new diamond cuts and gorgeous designs, the news is radiantly notable – exciting, even: “Israel’s 2007 Diamond Trade Figures Best Ever.” This is an impressive increase in statistics from previous years and figures in staggering billions.
According to the official list published by the Israel Diamond Controller’s Office in the Ministry of Industry, Trade and Labor, the year 2007 saw an increase of 25.5 percent net exports of rough diamonds: from $2.699 billion in 2006 to $3.386 billion in 2007.
The ‘high time’ could get the Israeli government heady — and while they’re at it, the world diamond industry is waiting for what the Israeli government has to say. Obviously thankful, yes, but we are eager to know what lies ahead. After all, this is clearly a significant occasion in the country’s economy.
Current Efforts of Israel’s Diamond Industry
Expressing gratification, the Israeli diamond industry has said that it will prove its strength by adjusting to the major changes in the world diamond industry. This will include the areas of rough supply, manufacturing locations, open marketing conditions, and mobility of manpower / capital, among many others.
There also lies the challenge of stirring up new consumer markets. Now more than ever, it is very important for Israel’s diamond industry to increase the distribution of polished diamond gratification to wide base markets. Already, the news is out that Israel is targeting expansion in the major markets of India, Japan, and China. For the latter, the first Chinese language portal site recently launched. For the record, no diamond center, and not one since, has pulled a smart move like this.
Meanwhile, trends in diamond prices look pleasant as well with market watchers predicting the average level of diamond prices to peg, on the average, 7% higher than 2007.
Indeed, 2008 promises to be an even more challenging year for Israel, already in contention as a leading player in the world diamond industry. At this position, trust the Israel diamond industry and authorities to be more emboldened with its efforts to stay afloat in the trade and maintain its good performance.
Make no mistake: Israel has the distinction of producing the most breathtaking diamond jewelry and exporting nearly half the world’s gem-quality diamonds. Also, Israel diamonds’ polishing facilities are hailed as the most advanced in the world. For their part that is just about expressing confidence, not to mention signaling intimidation over its competitors.
The Position of the Israeli Government
The same stance was displayed by the Israeli government. After all, the diamond industry has been one of the country’s most important pillars of economy.
The Israeli government recently said that it will help the Israeli diamond industry to expand to new markets. As far as both parties are concerned, sans diamond mines, developments such as this are just about the stuff needed to install Israel as the leading world trade center for processing, sorting and marketing both rough and polished diamonds.
In gist, the Israeli government promised to provide the Israel diamond industry with the appropriate infrastructure for the development of international markets and continued growth.
The supportive government attitude toward the Israel diamond industry comes as no surprise. The Israeli government has always been very liberal towards the Israel diamond industry. And this position is not about to change as long as the Israel diamond industry continues to be a significant source of foreign currency.
Even the help extended to the diamond industry can go as far as deviating from the general policies. (If things are proven essential to economic gains, a happy government should be prepared to provide room to flex and grow.)
While the Israel diamond industry continues to employ state of the art technologies, hire highly trained labor force and integrate second and third generations into the business, what the Israeli government may do is to enhance these efforts and specifically in matters like forging joint ventures and mutual undertakings between Israel and foreign entities in manufacturing, production and marketing of polished and rough diamonds.
Current joint efforts by the Israeli government and Israel diamond industry
Already, the governments of Liberia and Israel, through the Israel Diamond Institute (IDI), have signed cooperation agreements aimed at promoting the diamond trade and helping Liberia take better advantage of its diamond reserves, which remain relatively unexplored since exploration activities about four decades ago. As a major player in diamond industry, Israel provides technology and knowledge transfer to help Liberia eventually develop its systems and industry. It can mean a lot to the struggling African country.
Recently, Tel Aviv hosted this year’s edition of the International Rough Diamond Conference – the third. The successful event was a testament to the realization of both the Israeli government and Israel diamond industry’s goal of intensifying relations between the country’s diamond sector and other diamond producing countries from different parts of the world.
Meanwhile, what remains to be seen is how the Israel diamond industry will react to the slowing economy of the United States vis-à-vis the effect of the main US market’s reduced demand for polished diamonds. Last January 2008, retail sales indicate that American consumers cut back spending on luxury items. If the trend continues, first-quarter sales and profit is predicted to be lame. It is still premature to assume but the Israeli government should be better prepared to guide the country’s diamond industry to review its business model.
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