Iran War Disrupts Diamond Trade in Dubai and Israel: TendersPostponed Amid Security Concerns

February 21, 2019

The escalating Iran war hastriggered immediate disruption across the global diamond supply chain,particularly in key trading hubs such as Dubai and Ramat Gan. Majorrough-diamond tenders have been postponed as security risks, airspacerestrictions, and operational uncertainties affect the Middle East’s gemstonemarket.

This development raises seriousquestions for traders, investors, and supply-chain stakeholders monitoring thestability of international diamond flows.

Rough-DiamondTenders Postponed in Dubai

Two major diamond trading firms — KoinInternational and Trans Atlantic Gem Sales (TAGS) — have delayed their scheduledrough-diamond tenders in Dubai following the outbreak of hostilities.

  • Koin International     postponed its March 3–5 tender to March 9–11.
  • TAGS     delayed its March 1–5 event indefinitely, prioritizing staff and client     safety.

The companies cited:

  • Escalating regional security concerns
  • Drone and missile activity in the Gulf region
  • Cancellation of flights into the United Arab Emirates

Dubai has long served as a strategiccenter for global rough-diamond tenders, making these postponements significantfor international buyers and suppliers.

DMCCand Dubai Diamond Exchange Move to Remote Operations

The Dubai Multi Commodities Centre(DMCC), which oversees the diamond trade in Dubai, has shifted to remoteworking while assessing the situation on a day-to-day basis.

The Dubai Diamond Exchange (DDE),operating under DMCC, is closely monitoring developments to ensure businesscontinuity while prioritizing safety.

Dubai’s role as a global diamondtransit and tender hub means prolonged disruption could impact:

  • Rough supply pipelines to India and Belgium
  • Short-term pricing stability
  • Tender scheduling across the Middle East

IsraelDiamond Exchange Switches to Emergency Mode

In Israel, the Israel DiamondExchange (IDE) in Ramat Gan has implemented emergency protocols.

Key measures include:

  • Closure of the main trading floor
  • Limited site access
  • Essential services only

Israel remains one of the world’sleading centers for polished-diamond trading and manufacturing. Operationalrestrictions at the IDE could temporarily affect exports, buyer visits, andinternational deal flow.

BroaderImpact on the Global Diamond Market

The Iran conflict has introducedimmediate logistical and geopolitical risks to the diamond trade ecosystem.Potential consequences include:

1.Supply Chain Delays

Flight cancellations and regionalairspace instability may slow rough shipments to cutting centers, especially inIndia.

2.Tender Calendar Disruptions

Dubai-hosted tenders are central toprice discovery. Repeated postponements could create short-term volatility.

3.Buyer Sentiment and Liquidity

Uncertainty may reduce short-termtrading volumes as buyers adopt a wait-and-watch approach.

WhatHappens Next?

Industry leaders are reassessingoperations daily. If tensions escalate, further tender postponements andrestricted trading conditions may follow. However, diamond markets havehistorically shown resilience during geopolitical crises, adapting throughalternative trade routes and digital tender platforms.

Stakeholders should monitor:

  • Updates from DMCC and IDE
  • Flight and logistics restoration in the UAE
  • Security developments across the Gulf region