Alrosa Reopens Dubai Office After 5-Yr Hiatus

Alexander Efimov, Ahmed Bin Sulayem, Dmitrii Chizhov and Andrey Polyakov.

(IDEX Online) – Alrosa has reopened its ARCOS East DMCC sales office in Dubai. The activity of ARCOS East was suspended during the market downturn in 2009.

Alrosa said the decision to reopen the sales office was connected with the rapid growth of Dubai as the world’s diamond trading center. The reopening will strengthen the company’s presence in the of the United Arab Emirates (UAE) diamond market, Alrosa said in a statement. Holding auctions and working with clients directly in the region will allow the miner to track current market conditions and make rough diamond price forecasts, it said.

At the end of November, ARCOS East DMCC held its first auction of large rough diamonds (more than 10.8 carats), regular stones and polished diamonds. The results of the auctions demonstrated strong interest and stable demand for the firm's rough diamonds, with more than 80 companies, including clients from UAE, bidding. Alrosa already has buyers Dubai, and in the first nine months of 2014, the companies bought $100 million of rough diamonds at tenders and spot sales.

Alrosa has signed a Memorandum of Understanding (MoU) with the Dubai Diamond Exchange (DDE) in order to improve cooperation with the UAE diamond community, the company said.

Alexander Efimov, Russian Ambassador to the UAE, Andrey Polyakov, Vice President, Alrosa, and Dmitrii Chizhov, General Director, Arcos East, were welcomed by Ahmed Bin Sulayem, Executive Chairman, DMCC; Gautam Sashittal, Chief Executive Officer, DMCC; Peter Meeus, Chairman of the Dubai Diamond Exchange, and other senior DMCC officials.

Ahmed Bin Sulayem said: “The ever increasing number of large corporates and leading market participants such as Alrosa – Arcos East DMCC choosing to operate out of Dubai and the DMCC Free Zone continue to make a significant impact on the rapid growth of the diamond trade in the UAE.

“Alrosa is one of the world’s leaders in diamond mining accounting for approximately 97 percent of all Russian production, and we wish their subsidiary Arcos East DMCC every success as they expand and access new markets here in Dubai and beyond.”

Polyakov said: “Alrosa’s decision to operate out of Dubai and in the DMCC Free Zone is another step in a long term expansion plan. Dubai connects all major diamond production and consumption centers globally. From a logistics perspective the Emirate has the unrivalled ability to support the growth ambitions of global traders, and its international transport links makes doing business here convenient and efficient. Dubai is no doubt one of the most efficient places for the trade which is one of many reasons why we are opening an office here.”