Israel’s diamond industry is continuing to grow In 2022

  (photo credit: UNSPLASH)
(photo credit: UNSPLASH)

The first quarter of 2022 seems to be going well for Israel’s Diamond Industry, with an increase in its four major trade categories. According to statistics, the first quarter of the year had a growth of 45% in diamond imports, compared to last year’s first quarter. This positive growth is proving that the industry is stronger than ever, though with everything going on in the world anything is possible.

The Israel Diamond Institute (IDI) reports that the first quarter or 2022 experienced impressive growth. Similarly, the Economy and Trade Ministry’s Diamond Controller came out with some statistics, where according to those figures, the first quarter of 2022 (including March), continued with this positive trend in the diamond industry, with increases in all trade categories. 

Imports and Exports Growth Rate

In the first quarter, total net imports of diamonds to Israel was roughly around $494 million, which marked an increase of 4% compared to the same period in 2021. However, in March of 2022, there was an increase of 3% compared to March 2021. 

On the other hand, net rough diamond exports during the first quarter in 2022 amounted to around $526 million, with an enormous increase of 35% over the Q1 of 2021. Similarly, in March, there was an increase of 11% over the same month in 2021. 

In terms of total net polished diamond imports in Israel, the first quarter of 2022 amounted to a total of $949 million, which is a huge increase of 45% compared to the first quarter of last year. When comparing March of 2022 to March 2021, there was an increase of 13%. However, total net polished diamond exports increased up to 58%, reaching $1.3 billion only in the first quarter of 2022. Again, in March 2022 there was an increase of approximately 105% compared to Q1 of 2021. 

As Aviel Elia, Managing Director of IDI said: ‘’The positive growth trend of the diamond industry, which continued into the first quarter of 2022, proves the resilience of the world diamond industry, and the Israeli Diamond Industry in particular. The large-scale fighting in Ukraine has made the global situation today uncertain and volatile, and we cannot predict how this will affect the diamond industry in the coming months. We hope for a rapid end to the loss of lives and destruction and a return to stability going forward.”

Natural Diamonds versus Lab-Grown Diamonds

We can’t forget to mention the new sustainable approach that many diamond companies seem to have taken, which is lab-grown diamonds. Essentially, these types of diamonds are extracted and made under the same environmental conditions as natural diamonds, but the difference is that lab-grown diamonds are more eco-friendly, meaning they don’t waste water and they use less carbon emissions.

The process of shaping and designing these lab-grown diamonds is almost the same as mined diamonds and you can best see this at modern diamond companies where they create lab-grown diamonds, which take any design or shape. As a bonus, these types of diamonds are less expensive that natural diamonds, so it makes sense why consumers are considering this approach over the traditional one.

Of course, this is a much better alternative than natural diamonds, but have Israeli companies taken a shot at this approach? Not yet, though the consumer demand for sustainable products is constantly increasing, so there’s a huge chance that Israeli consumers and companies will be more informed about this eco-friendly approach.

What is Israel doing to Continue the Growth of the Diamond Industry?

In a press release about the Israeli Diamond Industry, even the Diamond Controller and Director of the Diamond Ophir Gur said, “I do not think anyone, just a year ago, expected such a rapid recovery of the industry. The impressive figures reflect the worldwide growth trends in the diamond and jewelry industries, but there were also local reasons, first and foremost the direct trade with the UAE, which began at the end of 2020 and was a significant factor in 2021.”

On the other hand, Aviel Elia further states that they are satisfied by the industry’s outstanding performance in 2021, so they remain optimistic for 2022 as well. The first quarter of 2022 is expected to report a strong demand for diamonds, since US and other diamond buyers are still restocking inventories that experienced a decrease during 2021.

Sources from the Ministry of Economy and Industry said that the growth of the diamond industry in Israel can only continue if the government will implement a Free Trade Zone for diamonds. Additionally, these sources also reported that the Ministry is considering what steps to take in order to strengthen trade with the UAE and the increasing market in Qatar.

This article was written in cooperation with Craig Lebrau