Israel exports record amount of diamonds

Polished diamond exports from Israel rose 19% in 2000, to a record level of US$5.3 billion.

“Exceeding the US$5-billion mark in polished exports is a great accomplishment, firmly establishing Israel’s position as the world’s leader in supplying polished diamonds,” says Moshe Schnitzer, chairman of the Israel Diamond Institute.

Imports of rough diamonds grew 7.5%, reaching US$4.2 billion, whereas rough diamonds exports from the country rose 25.6% to US$1.4 billion.

The U.S. continues to be the biggest buyer of Israeli diamonds, followed by the Far East, Hong Kong, Belgium, Switzerland and Japan.

Exports are expected to grow even further in 2001 on the strength of the euro, De Beers’ marketing efforts and a recovery in the Japanese market. In addition, the institute plans to boost its own marketing initiatives.

“We intend to create a [marketing] program that will increase the effectiveness of our efforts and those of the industry, while expanding activities in existing markets and pinpointing new opportunities for growth,” says Schnitzer.

In related news, a meeting was held earlier this year between representatives of the Israeli jewelry manufacturers and manufacturers of diamonds and precious gems. The objective was to increase co-operation between the two groups.

“It makes perfect sense for Israeli jewels to be set with Israeli diamonds,” says Udi Shental, diamond controller for the Israeli Ministry of Industry and Trade. “Instead of exporting the jewelry unset, Israeli manufacturers are now looking to buy diamonds locally and set them here, thereby increasing the added-value of each piece of jewelry exported.”

The meeting led to the establishment a committee that will devise a work plan to streamline jewelry and diamond production and promote Israeli diamonds.