The National Bank of Fujairah PJSC (NBF) announced recently that it has established  a “specialised team focused on financing manufacturers and traders of rough and polished diamonds”. This team, which is part of the bank’s precious metals unit, will have a new office in Almas Tower, and is slated to commence operations in the summer.

It is felt that NBF's diamond financing team “will complement the bank's focus on the precious metals and jewellery sectors”.  The NBF, amongst the largest  local bullion banks in terms of service coverage, “provides an array of structured derivatives in commodities and base and precious metals”.

The diamond business of the bank will “primarily involve providing short-term purchase and sales financing to established diamond players as they ship raw diamonds from producing nations in the African and European continents to manufacturers in India and the Far East” the bank announced. For this division, NBF has taken on board “industry experts from Antwerp Diamond Bank's (ADB) operations in Dubai” the bank added.

"With Dubai's strategic location on global trade routes, its open business climate and modern infrastructure, it's no wonder that the city has quickly taken its rightful place as one of the leading diamond centres in the world,” commented Vikram Pradhan, NBF's Head of Corporate & Institutional Banking. “As a local bank with competencies in corporate banking, trade finance as well as precious metals, introducing a dedicated diamond financing service was simply a logical extension of our business mix and commitment to the local economy.”

Further, Pradhan  said: “Our competitive advantage lies in the bank's track record for operational excellence and compliance, its strong client relationships in the jewellery and gold sectors and now the in-house expertise from ADB, all of which would help NBF play a definitive role in the development of the diamond trade in the UAE."

Ahmed bin Sulayem, Executive Chairman of DMCC, said: "Over the past decade, Dubai has effectively leveraged its location on the 'New Silk Route' at the heart of the global diamond trade. One of the factors crucial to Dubai's ongoing success as a global diamond centre is financial support. With the gradual withdrawal of multinational banks from the diamond market, it is heartening to see strong local names like National Bank of Fujairah stepping in to take their place."

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Senior officials from NBF and DMCC at Almas Tower, as the bank launches its diamond financing business