WFDB Holds First WFDB Asia Summit

The World Federation of Diamond Bourses (WFDB) convened its first-ever WFDB Asia Summit Meeting on June 29 in Hong Kong, with the specific aim to strengthen the organization's ties with its member diamond bourses in East Asia.

Five of the six bourses invited to the summit - Bangkok, Hong Kong, Mumbai, Shanghai, Singapore and Tokyo - sent high-ranking delegations to attend the one-day meeting.

In his opening statement, WFDB President Avi Paz noted that Asia will soon be one of the world's leading and most diversified markets for diamonds and diamond jewelry.

“One of the WFDB's tasks is to make its members aware of changes in world markets and in particular to distribute essential information about the potential opportunities in Asia,” Paz said. “In order to do so, we need to improve communication in both directions.”

Paz noted that China has significantly lowered VAT on diamonds and that as a result, taxation issues are no longer a barrier for sustainable growth in the country. He went on to point out that countries like Russia and Turkey should take note of how China has opened up its market.

The meeting dedicated significant time to what the WFDB can do to help its Asian members in their own markets. Suresh Hathiramani, vice-president of the Diamond Exchange of Singapore, emphasized that the WFDB needs to help preserve existing market segments such as the engagement and bridal diamond jewelry markets.

Lawrence Ma, president of the Hong Kong Diamond Bourse stressed that the WFDB's role and mission as an industry leader and independent provider of information to its members is fundamental. He suggested that the WFDB provide more educational information to the downstream market on mining, manufacturing and diamond marketing and offer diamond market statistics to retailers in order to help position themselves better in the supply and sales side.

Ernest Blom, WFDB vice president and honorary president, noted that particularly in these difficult economic times, the message that diamonds are an asset as they retain their value, offers important protection for the consumers.

Howard Pomerantz presented an outline of the WFDB's efforts to set up diamond trading areas at international jewelry trade shows, called InterBourse areas, where members of WFDB affiliated bourses can trade diamonds at relatively low participation fees.