Jewelry industry experts from India and the UAE met in Dubai in early April to discuss and identify solutions to the sector's challenges amid the disruption of key supply chains following the outbreak of war in the Middle East and the closure of the Strait of Hormuz.
Over 200 representatives from the jewelry industries of the two countries, including manufacturers, retailers, and wholesalers, as well as government officials from both countries, participated in the dialogue under the theme "Building Confidence," organized by the Indian Embassy in the UAE, the Indian Consulate General in Dubai, and the Gem and Jewellery Export Promotion Council (GJEPC).
As noted at the meeting, the United Arab Emirates remains strategically important to India under the Comprehensive Economic Partnership Agreement (CEPA) between the two countries. The parties noted the "need for unity and trust in trade amid changing global dynamics." Experts remain confident in the UAE market despite global uncertainty, while also emphasizing the importance of closer coordination between the government, trade organizations, and industry.
The US and Israeli military operation against Iran and Tehran's retaliatory actions have caused a serious disruption to the diamond trade between India and the UAE. Drone strikes on UAE infrastructure have resulted in the suspension of most commercial flights between the two countries.
The impact on the diamond industry was immediate: the UAE accounts for more than two-thirds of India's rough diamond imports; India exports over 90% of the UAE's polished diamonds. Under normal circumstances, 400 to 500 export parcels passed between India and Dubai daily through secure airfreight channels. The flight cancellations have halted shipments, leaving traders unable to move goods through existing logistics networks.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
