Jun 30, 2020

DMCC Takes the Diamond Route to Bolster Trade Ties Between Dubai and China

DMCC announced today that it has signed a Memorandum of Understanding (MoU) with the Guangzhou Diamond Exchange (GZDE), thus establishing a “strategic partnership with one of China’s leading international diamond trading platforms and communities”.

The organisation pointed out the MoU has helped strengthen bilateral ties between the United Arab Emirates (UAE) and the People’s Republic of China; and it has also created “new trading opportunities across the diamond industry”.

Due to the MoU and as a result of the collaboration between the two bodies, both, the DMCC and GZDE will gain access to new markets. Both parties have also agreed to cooperate in promoting “responsible business practices” among their respective members.

“Since its inception in 2002, DMCC has helped transform Dubai into one of the world’s leading diamond trading hubs,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC and Chairman, Dubai Diamond Exchange. “With much more to achieve, DMCC will always seek opportunities to collaborate with others and write the next chapter of Dubai’s remarkable diamond story. This is just one of the many reasons why we are delighted to sign the agreement with the Guangzhou Diamond Exchange, and we look forward to the potential this brings.”

He added: “This agreement will further advance the strong and longstanding cultural and commercial ties that exist between the UAE and China, and extend our support to both the Dubai Silk Road strategy and One Belt One Road Initiative.”

Liang Weizhang, President, Guangzhou Diamond Exchange commented: “DMCC is a brilliant and energetic hub for the international diamond industry. DDE and GZDE have a very good partnership and series of mutual activities in the past years enhancing the trust and trade between the traders of the two platforms. In this specially challenging but should-be-with-hope moment for the global industry, we are looking forward to closely cooperating with DMCC to introduce more business opportunities to the Chinese diamond industry and to explore and identify more sparkles for the Dubai diamond community, together with the global diamond society. This strategic document mandates us mission with vision.”

DMCC noted that it has successfully built “a world-class ecosystem” for the diamond trade in Dubai, including the Dubai Diamond Exchange (DDE), “the world’s largest tender facility”. In 2019, the trade for diamonds in Dubai reached AED 84 billion (US$22 billion).

“According to National Bureau of Statistics of China, China's jewellery market has seen a positive trend with three consecutive months of growth since March 2020,” said Zhu Yongsheng, Chairman, Guangzhou Diamond Exchange. “As an international diamond trading platform and a modern comprehensive service hub for the industry rooted in the largest diamond market in China, Guangzhou Diamond Exchange will work closely with DMCC and the Dubai Diamond Exchange to provide high-quality trading services and industry support for both the Chinese and foreign diamond industries.”

China is one of DMCC’s key target markets and its business district already enjoys strong relationships with several Chinese entities, the organisation emphasised; adding that last year, it had signed a similar agreement with the China Gems and Jade Exchange (CGJE) to connect buyers and sellers of gemstones and jade from the two countries.

“Guangzhou is the largest jewellery retail market and export processing base in China. The GZDE serves as the gateway for the diamond industry into South Mainland China,” DMCC stated. “It is home to over 1,500 registered jewellery companies.”

Image credit: DMCC