High tech applications to drive surge in global trade
DUBAI – DMCC, a free zone and Government of Dubai Authority on commodities trade and enterprise, has released a special edition of its Future of Trade thought leadership report series focused on lab-grown diamonds (LGDs), the rapid global rise of this nascent technology and its transformative impact on the industry.
The report, titled “Coming of Age – The Future of Lab Grown Diamonds,” is a culmination of industry expertise and in-depth analysis. It provides a strategic compass for stakeholders navigating the LGD landscape and examines the dynamics that have driven the meteoric rise of the industry over the past few years.
The LGD industry reached a remarkable global retail sales value of USD 12.24 billion in 2022, surging as the fastest-growing segment within the jewellery sector and expanding to encompass new domains such as semiconductors and quantum computing.
The report finds that Dubai has emerged as a key player in the LGD trade, and is poised to lead the next chapter of innovation and industry growth. The report illuminates key findings that set the industry’s trajectory, propelling LGDs from a niche market to a technological powerhouse.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “The LGD industry is navigating a phase of transition, adapting to slower growth, disruption and market shifts in the United States, while exploring untapped markets like China, Europe, India and the Middle East. With the rise of the LGD industry symbolising the intersection of technology and trade, the potential it holds is monumental.”
“As a global trade hub, Dubai offers a strategic location for LGD innovation and trade, envisioning a future where LGDs redefine industries and sustainability norms. Leveraging DMCC’s world-class infrastructure and facilities coupled with our expertise in trade and advanced technology, we are excited to see Dubai positioned as a pioneering force in this transformative era,” he added.
The collective drive to chart a forward-looking roadmap for the industry prompted key stakeholders to convene at the inaugural LGD Symposium hosted by DMCC in July 2023. The LGD Symposium served as an opportune platform for knowledge exchange, bringing together influential figures at the forefront of the industry. The Symposium scrutinised essential drivers for the LGD industry’s success and explored how a cost-effective technology product could thrive in the luxury market.
Drawing from the invaluable discourse at the Symposium, the Future of Trade report outlined a number of important recommendations to help drive the evolution of the industry and shape the next phase of growth:
- Acknowledge LGDs as a technology industry: LGDs should be priced based on the technology they represent, positioning them as value-driven rather than commoditised products.
- Prioritise product innovation: Investing in research is essential to help reduce production costs and drive innovation in diamond and jewellery design, while also unlocking LGDs’ potential in high-tech applications.
- Rethink supply chains: By transitioning to demand-led supply chains, LGD businesses can optimise operations, reduce inventory costs and accelerate the transformation from raw materials to finished products.
- Emphasise the value of the final product: Focusing on the value of the complete end product rather than individual components will enable partnerships that capture the comprehensive value proposition.
- Exhibit leadership and innovation: Embrace industry leadership by leveraging intrinsic strengths, marketing LGD products based on their unique attributes and setting benchmarks for sustainability.
DMCC has played an instrumental role in positioning Dubai as one of the largest diamond trade hubs in the world. In line with its mandate to enable and attract new trade flows through the Emirate, DMCC is building upon this leading position in the diamond industry to become a global hub for the LGD market segment too.
The trade in LGDs grew by more than 125% in Dubai during 2022 with total imports and exports of approximately USD 1.5 billion, driven by state-of-the-art infrastructure and specialised facilities provided by DMCC to support the growth of the industry. Today, DMCC is home to over 30 LGD companies.
To download and read the full report, please visit: https://www.futureoftrade.com/