The Industry’s Dubai Imbroglio
April 01, 10A few weeks ago, I was interviewed on an Israeli television news program as someone “who would know something about
In the wake of alleged Israeli wholesale fabrication of foreign passports, and statements made by a
It is in the best interest of the diamond business to keep politics out of our international trading fraternity – though that is often easier said than done. In a recent meeting of the Executive Committee of the World Federation of Diamond Bourses (WFDB), some participants wondered whether the Presidents Meeting, scheduled to take place in
As far as I know, the issue has not yet been put on the agenda; I hope it will not be. So what exactly is the “issue” that the WFDB is contemplating to discuss? It has to do with organizational by-laws and the obligations of WFDB members.
Any individual member of a diamond club must be allowed to enter any of the affiliated bourses. Any visiting member thus enjoys the umbrella of secure and honest arbitration in the case of business disputes. There is really no other genuine justification for maintaining this umbrella body.
It was only a few years ago, at the 2004 World Diamond Congress in
In the last few years, however, there have been a number of instances in which certain diamantaires (or their accompanying spouses) were denied entry into
With all due respect to the tremendous influence the DMCC’s Ahmed Bin Sulayem and his family may enjoy, they are businessmen who have made huge commitments and investments in establishing a diamond business in
Proliferation of Bourses
In the past, the WFDB was a most selective, rather exclusive, fraternity. Laws and by-laws of prospective clubs were scrutinized, and applying bourses needed to have a proven record. It wasn’t easy to become a member of the WFDB.
Then the tide changed. It was, if I am not mistaken, under Eli Izhakoff’s presidency that diamond-trading regions were encouraged – and actually assisted – to form a diamond bourse. The haste and “immediacy” of their acceptance in the WFDB astounded many old-timers.
The erstwhile exclusive WFDB now counts 28 members, and more are in the making.
The proliferation is a good thing – it brings more diamond merchants into an organized environment; it brings greater unity and uniformity in ethics and grading standards. However, it also brings about a greater diversity in political and legal systems in which the bourses operate.
Many contemporary diamantaires may have forgotten the history of
The
In quite a few countries today, bourse members are having difficulties getting entry visas to visit other WFDB-affiliated member countries.
Today, billions of dollars worth of rough diamonds transit through
The diamond industry must ask itself, however, whether these deficiencies are significant cause for sanctions against the
Getting Assurances from
In
The Director of the Consular Affairs Department of the UAE Ministry of Foreign Affairs, Ambassador Sultan Al Qortasi, said in a statement that “special entry permits” are issued to those participating in international events, “in line with the UAE's commitment to a policy of permitting any individual to take part in international sports, cultural and economic events or activities being held in the country, without any limitation being placed on participation by citizens of any member country of the United Nations."
The statement concluded: "This is a well-established policy and has no political implications. Nor does this decision indicate any form of normalization of relations with countries with whom the
These assurances fall short from satisfying individual bourse members attempting to visit
The Relevancy of the Organized Trading Community
It is hard to put an exact, concrete figure on the size of the worldwide diamond-trading community. There is some overlap where members have membership in more than one bourse. Many companies employ staff that do not have their own bourse membership – but, through the affiliation of the employer, adhere to the trading rules. Most of the world’s diamond manufacturers are also members of a bourse, recognizing the benefits of this unique trading umbrella. It is prob
It seems apparent that traders’ skills and organizations play a pivotal role in the st
The proliferation of bourses allows better service to far-away regions, provides added security to all members, and will assist the opening of new markets. This requires the WFDB to adjust its policies and “mind-set.” It isn’t easy to optimize inclusiveness – which is a prerequisite to an effective trade – and reconcile such policy with the increasing polarization of the global political scene. The latter will get worse – not better.
It doesn’t make sense to undermine such policy because of political considerations outside the spheres of control of the relevant bourse members.
Business is difficult enough without creating extraneous obstacles – any cost/benefit analysis of various policy options should be guided by long-term commercial interests. To unite and expand the trade is the task of the organized trading community. Politics are better left to the politicians.