Arcos East DMCC, one of Alrosa’s  foreign-based trading subsidiaries, re-opened its doors with an auction held in late November of large rough diamonds (more than 10.8 carats), regular stones and polished diamonds.

“The results of the auctions demonstrated strong interest and stable demand for Alrosa’s rough diamonds,” the company said in a note issued yesterday. “More than 80 companies, including clients from UAE, participated in the auctions as bidders.”

The activity of Arcos East was earlier suspended during the market downturn in 2009. The rapid growth of Dubai as a diamond trading centre was the main reason behind Alrosa’s decision to recommence sales operations there.

Alrosa already has some buyers from Dubai and in the first nine months of 2014, the companies from UAE purchased rough diamonds worth US$ 100 mn at tenders and spot sales.

The company believes that a trading platform on site will contribute to strengthening the company’s presence in the diamond market of the United Arab Emirates. Also, the company says that “holding auctions and working with clients directly in the region will allow controlling current market conditions and making forecasts on rough diamond prices”.

Further, Alrosa has signed a Memorandum of Understanding (MoU) with Dubai Diamond Exchange (DDE) in order improve  cooperation with the diamond community  in the UAE.  “Both parties continue to work closely and exchange expertise and information regarding the implementation of the Kimberley Process Certification Scheme, share information on market intelligence and opportunities,” the company said.