The Israel Diamond Exchange (IDE), one of the world’s largest bourses, is continuing to face a significant decline in exports and membership this year, mainly because of the ongoing war in Gaza and a broader global market downturn.
The exchange has seen its first annual drop in new members, with just 30 people joining this year, compared to an average of 200 per annum in better times.
The number of retirees from the bourse has surpassed the number of new members for the first time, according to IDE President Nissim Zuaretz. The exchange currently has just over 3,000 members – a number that has been stable for many years.
Israel’s net exports of rough diamonds fell by 6% on the year in the first half of 2024. Meanwhile, polished diamond exports slumped by 33%. In July 2024, exports dropped by nearly 50% year-over-year.
Former IDE President Boaz Moldawsky previously cited both the ongoing war against Hamas and a global economic slowdown—beginning before the escalation of hostilities on October 7—as major factors contributing to the decline. He noted that the Israeli diamond market was "completely paralyzed" immediately after the war began, though normal operations eventually resumed.
However, the prolonged conflict has deterred people from visiting Israel, leading to the cancellation of key events like the annual International Diamond Week, which had been scheduled for early April.
With Israel now having to deal with attacks by Hezbollah from Lebanon and from Iran – causing international airlines to suspend flights to and from Israel until at least November – the security situation will continue to be uncertain until at least the end of the year.
The global downturn is largely due to reduced sales in key markets such as the United States and China, together with a considerable drop in diamond prices, which fell by about 20% in 2023 due to weakened consumer demand.
Abraham Dayan for Rough&Polished from Tel Aviv
