Let us take a closer look at the impressive growth in one of the most advanced metropolises of the world- Dubai. The city that houses construction masterpieces like Burj Al Arab is undoubtedly brimming with favorable conditions required for brisk precious trade. The city accommodates 180 nationalities- quite an impressive figure to describe the unity in diversity. The government stands strong with strict control in the areas needed. The most luring factor is the 50-year tax exemption that places Dubai amongst the most desirable places for trading. Besides, lowest crime rate, increasing tourism and high per capita income provide all reasons for the investors to look at Dubai as a lucrative market. These are just a few features. As this report unfolds, I am sure you will be impressed by the extra ease of trading that this Arabic land offers.

Precious Trade Targeted for Growth :

Oil, copper, pearl, spices and gold have long been the backbone of the United Arab Emirates’ thriving economy. Now the country, especially Dubai is trying to figure out more options for boosting its economy other than oil and so far they have been successful in doing so, “The UAE’s diversification drive – particularly its move away from oil dependency – is crucial to the country’s development. The world is watching the UAE especially Dubai – both with admiration for its successes and anticipation of its next forward move,” says Sheikha Lubna Al Qassimi, Minister of Economy & Planning, UAE. She elaborates, “In 1980, petroleum and natural gas accounted for roughly 75 per cent of our country’s GDP; today, that figure is closer to 30 per cent. Last year, the UAE’s GDP grew by 23 per cent, reaching US$163 billion. Our economic growth rate was almost 9 per cent ahead of the global average. A recent report by AT Kearney suggests that the UAE’s GDP can increase by 60 per cent by 2010, through continued economic diversification based on three key drives: direct investment, internationalization and development of new industries.” %% One of the new industries that is witnessing great support from the country’s government is the gems and jewellery trade. Most often referred to as the Gold City, Dubai is registering some impressive figures in diamonds and jewellery too. UAE accounted for more than US$ 6 billion of the US$ 146 billion global jewellery market. Dubai exported $664 million worth of precious and semi-precious gemstones in the first half of 2006. Reportedly, the retail industry of UAE is the third biggest contributor to the GCC economy after construction, oil and gas. According to Dubai Multi Commodities Centre, Dubai imported 489 tonnes of gold while exports from Dubai increased by 23 per cent to 274 tonnes. Moreover, Arab nationals are known to spend nearly US$ 2 billion on diamonds making Gulf the fourth largest diamond market in the world. Dubai contributes the major share of diamond business in the Gulf. “ There has been almost double digit growth in the diamond business in Dubai in past few years. With modern infrastructure, increasing Middle-East market, government support, its proximity to India, Dubai will become the diamond trading hub if India does not,” opines Rajesh V. Mehta, MD, Super Gems.

The Big Four of Tax-free Regime :

Tax-free environment and world-class infrastructure of Dubai act as major attraction for business. Apart from that, bodies like DMCC and Dubai Gold & Jewellery Group make concerted efforts for a booming precious industry. The Dubai Government established DMCC in 2002; its wide umbrella covers everything from gold to tea. DMCC’s diamonds and colored stones division strives to establish Dubai as a diamond and gems trading and value-adding centre of global significance. Under a Free Zone status, DMCC will accommodate every facet of business- manufacturing, trade, education, certification and technology. DMCC has been instrumental in implementing the Kimberley Process Certification Scheme in the UAE. Through the creation of market-specific infrastructure, such as the Dubai Diamond Exchange, the Dubai Gem Certification, DMCC’s industry initiatives provide a major support to the diamond industry. “We are trying to establish an industry cluster here. We aim to have the entire value chain here. To accomplish our goal we have several industry specific services. We are also working quite actively with different banking institutions. There are many options for gold financing in Dubai but as diamonds are relatively new entrant in the market, we are making efforts to get more cooperation from national and international banks,” tells Gaiti Rabbani, Chief Sales & Marketing Officer, DMCC. She adds, “ We are focused more on high end manufacturing. It is preferable for people to set up technology driven manufacturing bases here rather than labor intensive units.” DMCC also monitors infrastructure development and assists business networking through various conferences.

Pearl Revival :

DMCC recently announced Dubai’s Pearl Project, “The aim of this ambitious project is to revive the UAE’s historical significance as a leading destination for pearl cultivation and trading. The project will comprise a pearl farm, waterfront museum, and retail destination. When fully operational, Pearls of Dubai will produce Dubai Brand Pearls at offshore farms. Visitors to the centre will be transported to selected sites on traditional dhows (boats) and can even have a first hand pearl diving experience. Pearls of Dubai will develop the entire value chain of the industry from production to retail. The newly created Dubai Pearl Exchange will form an integral part of this chain by providing an exclusive trading platform,” say Ahmed Bin Sulayem, COO, DMCC. %% Dubai Gold & Jewellery Group (DGJG) is an association of over 700 members and represents 90% of the active jewellery trades of Dubai. Established in 1996, the Group has been instrumental in many landmark developments for the industry. Chandu Siroya, Vice Chairman (DGJG) explains, “Coupled with a flourishing economy with a population of 4.32 million and a per capita annual income of US$ 35,000, not to mention world class shopping facilities, tax free environment and increased tourism, the region, and Dubai in particular, holds great potential for the development of colored gemstones business well.”

Wooing Foreign Investment :

The UAE government welcomes foreign investment and is working to attract a considerable share of global business, “Tirelessly, we work to increase our global integration: To liberalize our economic policies, to reform and expand our finances and banking sectors, and to attract foreign investment plus human capital. One way we achieve this is through our 23 Free Zones, which offer member companies such benefits as 100 per cent foreign ownership, secure regulatory frameworks, world-class facilities and major tax benefits,” claims Qassimi. %% {{From Scratch to Sky !}} “In Dubai business is growing. At the same time the number of people who have entered the city has soared. Yet, anyone who is innovative and customer oriented will succeed,” opines Chandu Siroya who started business in Dubai in 1992 from scratch and today his company deals in over 1 ton of jewellery every month

Booming Tourism Incentive for Jewellery :

Flourishing tourism is a key factor that accentuates bright business possibilities in Dubai. In a recent survey it was found that 80% of all tourists visit the Gold Souk and at least 60% of them buy some jewellery. The retail sector of the precious industry is better equipped than ever to take advantage of the growing number of tourists flocking to Dubai, which is projected to touch 40 million by the year 2010. “Dubai has 850 jewellery outlets at malls, gold souks, high streets with a majority of its tourists buying jewellery, with sales at about US$2,500 one of the largest purchasing prices per capita in the world. Jewellers here cater to people who are coming from around the globe. Jewellery shopping is a must in the list of every individual visiting Dubai,” says Amit Dhamani, MD, Dhamani Jewels. Under the leadership of Amit Dhamani the brand ‘Dhamani’ stands amongst the top regional brands in the Gulf region.

Fair Trade Practices Mandatory :

The policies and practices of the government make it mandatory for the precious industry in UAE to strictly follow Fair Trade Practices. “ Here we have zero per cent tolerance policy. Spot checking makes it impossible for businessmen to attempt unfair trade,” claims Chandu Siroya.

All Help Assured for New Comers :

The land that had traded predominantly in gold has now spread its wings to other areas. The flight that defines its destination as growth and development through global integration has begun. Already the impression of the massive expedition is evident as the global precious industry is on the look out for the first opportunity to set up base in Dubai. %% Well, if you too are tempted by the potential that exists in this Arab land, all you need to do is to book your flight to Dubai, the vibrant global business centre which, they say, will help you with a thousand hands!