A first-of-its-kind deal was signed on Thursday between the Israel Diamond Exchange and its Emirati counterpart, the Dubai Multi Commodities Centre (DMCC) that marked the beginning of directly transported commodities between the countries.
Up until the peace agreement signed between Israel and the United Arab Emirates, the transportation of diamonds and foreign currency was only possible through a third party, usually a European or Asian country.
The security requirements for transporting diamonds are extremely high, making the price of transportation accordingly high. Having to use a third party brought with it even more expenses, which led to an overall high price for the transported diamonds upon reaching their destination. This led many potential buyers in the UAE to seek different avenues, from different countries.
The deal opened up new exciting opportunities for those seeking to enter the diamond business, with more opportunities expected to become available with other Gulf States in the near future.
"This is a historic and very important agreement, which hides in it endless financial opportunities, both in the local and global spheres. In the past, we used to transport diamonds in indirect methods. I would send them to Hong Kong, change the stamps and send them from there to the UAE. Today, we're in direct contact and can carry out commerce worth billion of dollars. It's a big difference," president of the Israel Diamond Exchange, Yoram Dvash, told Ynet.
And no times was wasted, with Brinks Israel, an international American security company that provides secured logistical services, having had already transported diamonds and foreign currency from Israel to the United Arab Emirates for the first time earlier this week.
"We're happy to do business directly, without the need for mediators. I'm positive that this agreement will lead to other agreements with Gulf States, which will give rise to more business endeavors," president of Brinks Israel said in a statement.
According to Ynet, the DMCC is a government-owned company that was established in 2014. It unites over 16 thousand trading companies from various fields. Diamond exchange in the the stock exchange in Dubai reaches 25 billion dollars, compared to a 12 billion dollar scope in the Israeli stock exchange.