Diamonds worth US $2.3 million sold in first two transactions at Dubai Gems Club
Dubai Gems Club (DGC), the region’s newly formed exclusive trading platform dedicated to gemstones, saw its first transactions with about 30,000 carats of rough diamonds worth US$ 2.3million being sold.
Dubai Multi Commodities Centre (DMCC), the parent of DGC, said the sale was completed by ALROSA, Russia's largest diamond company engaged in the exploration, mining, manufacture and sale of diamonds and one of the world's major rough diamond producers. ALROSA accounts for 100 per cent of all rough diamonds produced in Russia and for about 20 per cent of the world's rough diamond output. It is the second largest diamond trading company in the world and is second only to DeBeers. ALROSA is also responsible for mining the rough diamonds for the Dubai Cut, the unique 99-faceted cut of diamond unveiled by DMCC late last year.
ALROSA’s move to the DMCC is the practical outcome of high level contacts between the top management of this company and the administration of the DMCC in December of 2005.
As this sale has demonstrated, DMCC’s establishment of the Dubai Gems Club is an important move, as it has paved the way for conducting significantly large volumes of trade in gemstones, through the exclusive platform offered by the club. Commented the representatives of ALROSA: “We are very satisfied by the execution of these inaugural sales and look forward to working closely with the DGC to further grow the trade in gemstones through Dubai.”
ALROSA has also decided to take advantage of the security and privacy provided by the Club’s ISO-certified facility to start trading rough diamonds regularly to meet the needs of DMCC clients. Beginning September, ALROSA hopes to start regular monthly sales in diamonds.
ALROSA also announced that it had formed a DMCC subsidiary - Arcos East DMCC. Headed by Mr. Sergey Panchekhin, Managing Director of Arcos East DMCC, the company will be headquartered in Dubai and will launch operations in early July.
Ahmed bin Sulayem, Chief Operating Officer, DMCC said: “We are extremely pleased to announce that these first sales through Dubai Gems Club have been conducted by ALROSA. These transactions prove the market requirement for a platform such as the Dubai Gems Club. The sale, and ALROSA setting up a subsidiary office at DMCC, is a huge vote of confidence for us.”
“ALROSA’s announcement that it will be trading rough diamonds on a monthly basis on DMCC at the Dubai Gems Club is extremely significant because rough diamonds are scarce in today’s supply driven market,” said Tawfic Farah, Executive Director, Diamonds and Coloured Stones, DMCC. “Sales of such volumes will also go a long way towards building DMCC’s reputation as a growing centre for diamond trade,” he added.
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