Israel is one of the largest consumers of rough diamonds in the world (Table 1). The supply of rough diamonds to this country mainly goes through Europe.
Table 1
Diamond import and export in Israel in 2006-2011
According to the Kimberley Process
Israel is a world center of diamond cutting
Diamond cutting is the oldest industry in Israel and one of the most advanced in the world. Israel’s diamond cutting factories are currently employing about 4,000 people. Overall, about 20% of polished diamonds of all sizes goes through Israel, which makes the country a world leader both in production and export of these goods.
Israel has more than 400 diamond cutting factories. More than half of them are concentrated in the area of Tel Aviv, where there is also a diamond exchange, and in the cities of Netanya and Jerusalem.
The entire diamond business is concentrated and controlled by a few tens of polishing companies playing a significant role in trade and finance in Israel (Table 2).
Table 2
Polished exports by leading Israeli manufacturers in 2005-2011
$ M
According to the Ministry of Industry, Trade and Labor of Israel
* E.Z. & Yoshfe together with YEI Ltd
** According to the Kimberley Process
Fig. 1. Israeli diamond industry
Prospects for developing the diamond business in Israel
The current stage of development of the diamond business in Israel is characterized by:
1. Highly advanced infrastructure, complemented by a developed system of rough purchases and polished sales.
2. Close interconnection between the country’s government and diamond community and all-round state support extended to the diamond business.
3. Orientation of the diamond and jewelry sector for export to receive maximum profit.
4. Introduction of modern technological achievements in the diamond sector, which provides a high level of labor productivity and product quality.
All these factors will continue to help the diamond business in Israel maintain its pace-setting role in the world.
Yuri Danilov, Ph. D., Director of the Department of Regional Subsoil Management Economics, Institute for Regional Economics of the North at Ammosov North-Eastern Federal University
