Turkey to Launch Diamond Exchange

Turkey wants to join the growing number of countries that have a diamond exchange, saying it wants to be a regional player. The exchange, according to Oguzhan Aloglu, vice president of the Istanbul Gold Exchange, will open within weeks.

“The 'diamonds and precious stones market' will start to operate soon, hopefully in the coming few weeks,” Aloglu told Reuters, adding that it will operate from within the gold exchange.

Polished and rough diamonds will be allowed to be traded by members.

“In Turkey, the consumption of diamonds has risen around 25 percent annually. The young generation increasingly prefers diamonds to traditional jewelry,” Aloglu added. The aim is to fulfill domestic demand and attract customers from the Middle East, particularly in Dubai and Israel.

Rough diamond sales in Turkey stand around $600 million, while diamond jewelry sales are about $1.2 billion, according to Aloglu.

Turkey has a 20 percent import tax on diamonds, which the exchange is trying to scrap.