Diamond industry in Israel

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The Diamond industry in Israel is an important world player in producing cut diamonds for wholesale. In 2010, Israel became the chair of the Kimberley Process Certification Scheme.

Video Diamond industry in Israel

History

Diamond cutting is a traditional Jewish craft with centuries of history. In the late 15th century, Jewish diamond cutter Lodewyk van Berken invented the scaif, a technological innovation that revolutionized the industry. The Israeli diamond industry began in 1937, before the Declaration of the Establishment of the State of Israel, when the first diamond polishing plant was opened in Petah Tikva by refugee experts from the Netherlands. In 1938 the 15% import duty on imported rough stones was removed. By 1944 the industry employed 3,300 workers in 33 factories, with £P.1,320,000 capital investment, entirely Jewish. The value of exports was over £P.3,200,000 mainly to the United States, Canada, and India; It was the largest value of any single commodity exported from Mandatory Palestine that year. Between 1944 and 1948 the industry suffered from the increasing lawlessness and in February 1948 closed down completely. After a state was declared, the consumer economy was shifted to a war economy. This came at the height of a diamond crisis, as many war-torn economies were struggling to re-establish. Since then, the industry has continued to grow, producing a world leader in the diamond industry.

Maps Diamond industry in Israel

Current state

In the beginning of the 21st century, Israel is one of the world's three major centers for polished diamonds, alongside Belgium and India. Israel's net polished diamond exports slid 22.8% in 2012 as polished diamond exports fell to $5.56 billion from $7.2 billion in 2011. Net exports of rough diamonds dropped 20.1% to $2.8 billion and net exports of polished diamonds slipped 24.9 percent to $4.3 billion, while net rough diamond imports dropped 12.9 percent to $3.8 billion. The United States is the largest market accounting for 36% of overall export market for polished diamonds while Hong Kong remains at second with 28 percent and Belgium at 8% coming in third. Diamonds constitutes about 24% in total country export.

In 2007 year, 12% of world diamonds (by their value) were polished in Israel. In 2010 this number decreased to 9%.

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Trading infrastructure

The industry is located in the "Diamond District", located in Ramat Gan in the Tel Aviv District. The complex is made up of four buildings, interconnected with walkways. The entire trading operation takes place in this complex. The Diamond Tower in the district contains the world's largest diamond trading floor.

Israel's government funds a non-profit industry body, the Israel Diamond Institute, to represent organisations and institutions involved in Israel's diamond industry.

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Industry principles

The Israeli diamond industry guarantees all diamonds are 100% naturally made and participates in the Kimberley Process, a certification scheme whose goal is to ensure no blood diamonds enter the marketplace.

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See also

• Economy of Israel

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References

Source of the article : Wikipedia