Abraham Accords: Bank Rules Now Stifling UAE-Israel Diamond Trade
December 08, 21
(IDEX Online) - The diamond trade between Israel and the UAE has actually suffered since the country's normalized relations, say insiders.
Israeli banks are delaying money transfers, according to the Globes business website, with reports of accounts being frozen and deals being scuppered.
Prior to the Abraham Accords, signed in August 2020, business between the Ramat Gan and Dubai diamond exchanges was conducted unofficially via Hong Kong, Belgium and India.
They enjoyed "excellent relations even before last year's diplomatic normalization with trade representing 10% of Israel's diamond trade volume," says Globes.
But now that business is out in the open, Mizrahi Tefahot Bank and Israel Discount Bank - the two biggest diamond lenders - are said to be imposing tough restrictions to prevent money laundering and or the financing of terror.
Insiders say deals worth millions of dollars a week are being delayed or canceled.
Pic shows Dubai Diamond Exchange