News

May 09, 2019

DMCC Schedules First Ever Rough Laboratory-Grown Diamond Tender at the Dubai Diamond Exchange

Dubai’s DMCC has said that it plans to host the first-ever rough laboratory-grown diamonds tender at its Dubai Diamond Exchange (DDE) located in Almas Tower, Dubai.

“The tender is in line with DMCC’s strategy to attract, facilitate and drive new trade flows through Dubai,” the organisation said when announcing its plans.

The tender is being organised and managed by Tony’s Auction World, who are diamond traders based in Hong Kong.

Viewings of the Chemical Vapour Deposition (CVD) rough lab-grown diamonds – approximately 50,000 carats in 55 parcels – will take place from May 11-13, 2019.

“As a member of the World Federation of Diamond Bourses (WFDB), DDE is subject to all the organisation’s laws and must be compliant with its stringent regulations,” DMCC stressed. “All tenders held through DDE are necessarily regulated, transparent and conducted in accordance with the highest standard of integrity.”

“DMCC is delighted to host this tender on its inclusive diamond trading platform and by doing so, drive new trade flows through Dubai,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.

He went on to say: “It is encouraging to see DDE host more tenders than ever before in 2019. Our commitment to facilitating open and transparent trade is unwavering, as is our support for the natural diamond industry. Ensuring the integrity of the sales process is of paramount importance, and that is why lab-grown diamonds tenders will only take place on the DDE trading floor when both the seller and buyer can clearly evidence that the disclosure, detection and differentiation process has been adhered to.”

Rushabh Mehta, Chief Executive Officer, Tony’s Auction World commented: “We are proud to stage in Dubai the first laboratory-grown diamonds tender in the world. Lab-grown diamonds offer a different value proposition to natural diamonds and trading them in a regulated and open platform increases the transparency and legitimacy of the sales process. This is a major milestone and testament to both the growing prominence of lab-grown diamonds and their increasing market appeal.”

The organisation added that all sellers and buyers are mandated to comply with a robust due diligence process in line with DDE’s ‘Code of Business Conduct’.

The robust due diligence process requires that all sellers provide evidence that lab-grown diamonds are sold and stored separately to natural diamonds. “The DDE requires tender participants to clearly disclose and differentiate the product, with lab-grown diamonds and natural diamonds traded entirely separately,” DMCC underlined.

Scientific equipment commonly available in certification labs across the world can clearly and easily identify lab-grown diamonds, and distinguish them from the natural product, the organisation pointed out. “According to research from Bain, lab-grown diamonds make up around two per cent of the total diamond jewellery market, but production is growing by 15-20 per cent a year,” DMCC stated.

Pic Cap: A view of Dubai’s Almas Tower which houses the DDE

Pic courtesy: DMCC