Israel’s Rough Diamond Trade Soars to $8.47 Billion

Israel imported $5.084 billion worth of rough diamonds in 2007, an 8 percent increase over exports of $4.709 billion in 2006, according to the Ministry of Industry, Trade and Labor.

According to Diamond Controller Shmuel Mordechai, 2007 was a challenging year globally. Despite that, it was a record year for Israel, with combined exports of polished and rough diamonds exceeding $12 billion.

Exports of rough diamonds soared 25.5 percent over 2006, with $3.386 billion worth of goods shipped out in 2007 compared to $2.699 billion the year before.

Israel, formerly a leading polishing center that moved most of its manufacturing efforts to countries with low labor costs such as China, now focuses its local efforts on maintaining its viability as a sorting and selling center that services retail markets such as the U.S. and Hong Kong.

The difference between imports and exports, $1.698 billion, was probably polished in Israel. A few companies, such as DTC Sightholders A. Dalumi and Yerushalmi Brothers, maintain local manufacturing capabilities.

Unlike smaller goods, it is economical to polish large gems yielding diamonds of over 3 carats in Israel. Therefore, goods that were not exported probably include a great number of larger goods.

The ministry is expected to release carat figures later in the day. `