The diamond industry is important in Israel and one of the most important industries in the world for diamond production. As of 2016, diamonds accounted for approximately 23.2% of Israel’s export threshold and diamonds are the most exported product in the State of Israel, accounting for approximately 12% of production worldwide. But there are no mines in Israel, which leads to the following question: where do Israeli diamonds come from?
As of the beginning of the 21st century, Israel is one of the three main centers in the world for diamond production, after Belgium and India. In 2012, the value of exports was about $ 5.56 billion.
Israel is one of the diamond world’s leading centers – a hub for both the trade and manufacture of polished diamonds. Processing a great amount of the world’s gem-quality rough in dollar terms, Israeli diamond companies supply the stones that garnish a vast amount of the diamond jewelry sold worldwide.
The industry is located in the “Diamond Quarter” (where the Israeli Diamond Exchange is also located), the quarter located in the stock exchange complex in Ramat Gan. The complex consists of about 4 buildings (the tallest of which is a diamond tower), which are connected by paths.
The Israeli government funds a non-profit industrial body called the “Israeli Diamond Institute” and its purpose is to represent organizations and institutions related to the diamond industry in Israel.
Where Do Israeli Diamonds Come From?
So, where do Israeli diamonds come from? It is imported to Israel as raw stones from several countries that are controlling the market, and then polished and exchanges in the Ramat Gan Diamond Exchange (which is the largest diamond exchange in the world).
Main sources of import are:
- South Africa
- Namibia
- Zair
- India
- Belgium (The largest trading center in Europe).
- Russia
- Australia
Since the signing of the Abraham Accords in 2021 (Normalizations of diplomatic relations between Israel, the United Arab Emirates, and Bahrain), there is a constant rise in the weight of diamonds imported from the UAE. The worth of rough diamonds was imported from the UAE was about 7% of the total rough diamonds imported to Israel in August 2021.
Are Those Blood Diamonds?
The short answer is no.
Israel is one of the founders of the Kimberley Process Certification Scheme (KPCS), and in 2010 became the chair of the organization, to oversee the implementation of the program, the operations of the working groups and committees, and general administration, which basically ensures full compliance to the following principles:
- to trade only with companies that include warranty declarations on their invoices.
- to not buy diamonds from suspect sources or unknown suppliers, or which originate in countries that have not implemented the Kimberley Process Certification Scheme.
- to not buy diamonds from any sources that, after a legally binding due process system, have been found to have violated government regulations restricting the trade in conflict diamonds.
- to not buy diamonds in or from any region that is subject to an advisory by a governmental authority indicating that conflict diamonds are emanating from or available for sale in such region, unless diamonds have been exported from such region in compliance with the Kimberley Process Certification Scheme.
- do not knowingly buy or sell or assist others to buy or sell conflict diamonds.
- to ensure that all company employees that buy or sell diamonds within the diamond trade are well informed regarding trade resolutions and government regulations restricting the trade in conflict diamonds.
Are Diamonds From Israel Good Quality?
Generally, the quality of diamonds coming from Israel is good. The jewelers who design for the local market in Israel are the same ones who supply high-quality jewels for jewelry stores around the world. Additionally, the diamonds that are produced in Israel are of such high quality that several international laboratories and services for ranking diamonds are located in Israel, at the compound of the Israel Diamond Exchange in Ramat Gan.
An aspect that completes the desirability of purchasing diamonds and jewels in Israel is their competitive price. The Diamond Exchange in Ramat Gan is a tax-free area, and therefore diamonds are sold there at a decreased price due to the low taxation.