Sarine says cost reductions and efficiency improvements allowed it to reverse a $2.8m loss in 2023 into a $1.1m profit in 2024.
But the Israel-based diamond tech company said revenue dipped 8 per cent to $39.2m amid ongoing difficult market conditions – primarily weak demand in China and “continuing disruption from lab-grown diamonds”.
Sarine said it was recouping some of the costs invested in adapting its rough planning technologies for lab growns, and had also benefitted from opening a GCAL by Sarine lab in India, largely grading lab growns.
As party of its “aggressive business streamlining and cost cutting”, the company plans to relocate its manufacturing activities to India, its main market.
Looking to the future, it said demand for natural diamonds is likely to remain “constrained” throughout 2025, although markets for both natural and lab grown would become more distinct.
“It is our belief that diamond jewellery retailing will settle on a new equilibrium in the near term, with natural diamonds trending towards a significant market share especially in the bridal segment and LGD dominating the fashion jewellery segment.”
The volume of trade exchange between UAE and Israel, in the diamond trade, increased to $1.75 billion in 2022, an annual increase of 163%, according to the Dubai Multi Commodities Center (DMCC), a leading global free zone and government body concerned with the trade of goods and projects.
The ties between the diamond industries of both countries developed rapidly after ‘Abraham Accords’. On September 17, 2020, just two days after the signing of ‘Abraham Accords’ in Washington and the establishment of diplomatic relations between Israel and UAE, Israel Diamond Exchange (IDE) and Dubai Diamond Exchange (DDE) signed a cooperation agreement.
In 2022, the Israel Diamond Exchange opened an office in Dubai, and the Dubai Diamond Exchange opened in Ramat Gan, Israel’s diamond capital.
In May 2020, Israel and UAE signed Comprehensive Economic Partnership Agreement, eliminating tariffs on diamonds and precious stones.
Ahmed Bin Sulayem, executive chairman and CEO of DMCC, said: “Over the past two years we have witnessed strong growth in Israeli companies setting up in our free zone, as they take full advantage of growing their businesses globally and the vertical integration we bring to the category.”
“As the trade relationship grows and matures between Israel and the UAE, we look forward to welcoming more business from Israel in diamonds as well as other key sectors,” he added.
The UAE has witnessed soaring growth in the sector over the past three years, with the rough diamond trade rising by 72% and polished by 50%. Bin Sulayem noted this success, adding that Israel has played a significant part in its accomplishment.
“Dubai, via our Dubai Diamond Exchange, has become the global leader in the diamond trade. This is reflected in the diamond trade numbers with Israel, with $ 1.75 billion traded last year,” he said.
Dubai provides Tel Aviv with greater opportunities for trading in the global market due to its position as a prominent regional trading center, and its proximity to Asian centers for the production of precious stones, in addition to the preference given to Israeli occupation companies to trade without additional costs or taxes, as stipulated in the free trade agreement between UAE and Israel.
The DDE, which was established in 2002 under the umbrella of the Dubai Multi Commodities Centre (DMCC), has over 1,100 licensed companies. It now handles some $25bn in total trade, double that of Israel’s IDE.
