Diamond Industry Urged to Embrace Digital Innovation for Better Traceability

Photo : Dubai government media office

The Dubai Multi Commodities Centre (DMCC), a leading free zone and government authority on commodities trade and enterprise in Dubai, has unveiled its latest Future of Trade report. This special edition, titled "Provenance, Traceability and Technology," focuses on improving traceability in the global diamond supply chain.

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The report highlights the urgent need for advanced technology solutions to maintain the integrity and sustainability of diamond sourcing. It covers various technologies such as blockchain, artificial intelligence (AI), synthetic DNA, laser microjets, QR codes, and physical tracers. These tools are critical in addressing challenges like shifting consumer preferences, the rise of lab-grown diamonds, and the impact of G7 import restrictions.

A significant concern addressed in the report is the G7 sanctions against Russian diamonds, which include a blockchain-enabled traceability system set to be implemented from September 2024. The industry has expressed concerns about potential delays, increased costs, and regulatory overreach related to these sanctions.

To counter the risk of additional restrictions and promote a unified global regulatory approach, DMCC’s report advocates for the creation of a working group on Traceability and Transparency. This group, named the “Expert Group on Traceability and Transparency,” would work to establish standards for “Minimum Viable Levels of Traceability and Transparency.” By leveraging industry expertise, this initiative aims to support the advancement and widespread adoption of the best available technologies while preserving industry autonomy in the long run.

This report follows DMCC’s “Provenance, Traceability and Technology Forum,” held during the Kimberley Process Intersessional Meeting in May 2024, which gathered numerous diamond industry stakeholders in Dubai to discuss traceability advancements.

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, stressed the importance of adopting technological advancements. He stated, “It is crucial that we collectively embrace technology and its vital role in the diamond industry's evolution and supply chain. By utilizing AI, blockchain, and laser micro-machining, the industry must seize the opportunity to enhance transparency and support artisanal mining communities, which align with the objectives of the Kimberley Process.”

With DMCC’s Dubai Diamond Week scheduled for November and Dubai's compound annual growth rate of 11 percent in diamond trade over the past five years, the timely release of this Future of Trade report offers valuable insights for the global community. It provides important recommendations for safeguarding the long-term integrity and sustainability of the diamond supply chain.

The report will be discussed at the sixth edition of the Dubai Diamond Conference (DDC) on November 11, as part of Dubai Diamond Week. The conference will focus on the theme "Thriving Under Pressure: Navigating the New Global Paradigms," addressing the current challenges and transformative opportunities in the diamond market. Dubai Diamond Week will also feature the Kimberley Process Plenary from November 12-15 and the Jewellery, Gems & Technology (JGT) Dubai trade fair from November 12-14.

This special edition of DMCC’s Future of Trade report follows the launch of its most recent biennial flagship report in May 2024, which has been downloaded and viewed over 1.9 million times.