The Diamond industry of Israel is an important world player in producing cut
diamond
Diamond is a Allotropes of carbon, solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the Chemical stability, chemically stable form of car ...
s for
wholesale
Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
. In 2010,
Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
became the chair of the
Kimberley Process Certification Scheme
The Kimberley Process Certification Scheme (KPCS) is the process established in 2003 to prevent "conflict diamonds" from entering the mainstream rough diamond market by United Nations General Assembly Resolution 55/56 following recommendations in ...
. , cut diamonds constituted 23.2% of Israel's total exports and they were the country's biggest export product, amounting to 12% of the world's production.
History
Pre-state beginnings
What was to become the Israeli diamond industry began in 1937, eleven years before
the State of Israel was established, when the first diamond polishing plant was opened in
Petah Tikva
Petah Tikva ( he, פֶּתַח תִּקְוָה, , ), also known as ''Em HaMoshavot'' (), is a city in the Central District (Israel), Central District of Israel, east of Tel Aviv. It was founded in 1878, mainly by Haredi Judaism, Haredi Jews of ...
by
Asher Anshel Daskal Asher Anshel Daskal (April 18, 1908 – July 6, 1990) was a founder and a pioneer of the Israeli diamond industry. Daskal founded the first diamond plant in the land of Israel in Petah Tikva with his cousin Zvi Rosenberg.
Biography Early life
Ashe ...
and Zvi Rosenberg, two experts diamantaires from
Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern, and Southeast Europe, Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, S ...
that immigrated from
Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
.
[The Early 1900s](_blank)
by Shira Ami In 1938 the 15% import duty on imported rough stones was removed. By 1944 the industry employed 3,300 workers in 33 factories, with
£P
The Palestine pound ( ar, جُنَيْه فِلَسْطَينِيّ, ; he, פוּנְט פַּלֶשְׂתִינָאִי (א״י), funt palestina'i (eretz-yisra'eli) or he, לירה (א״י), lira eretz-yisra'elit, link=no; Sign: £P) was the ...
1,320,000 capital investment, entirely Jewish. The value of exports was over £P 3,200,000 mainly to the United States, Canada, and India; it was the largest value of any single commodity exported from
Mandatory Palestine
Mandatory Palestine ( ar, فلسطين الانتدابية '; he, פָּלֶשְׂתִּינָה (א״י) ', where "E.Y." indicates ''’Eretz Yiśrā’ēl'', the Land of Israel) was a geopolitical entity established between 1920 and 1948 ...
that year.
Between 1944 and 1948 the industry suffered from the increasing lawlessness and in February 1948 closed down completely.
First years of the State of Israel
After a state was declared, the
consumer economy A consumer economy describes an economy driven by consumer spending as a percent of its gross domestic product, as opposed to the other major components of GDP (gross private domestic investment, government spending, and imports netted against expo ...
was shifted to a war economy. This came at the height of a diamond crisis, as many war-torn economies were struggling to re-establish.
During the first fifteen years of Israel's existence, diamonds and
Jaffa oranges were the new state's main export products.
After reaching its lowest point in the wake of the 1948 closedown, the industry has continued to grow, producing a world leader in the diamond industry.
Current state
In the beginning of the 21st century, Israel is one of the world's three major centers for polished
diamonds
Diamond is a solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the chemically stable form of carbon at room temperature and pressure, b ...
, alongside Belgium and India. Israel's net polished diamond exports slid 22.8% in 2012 as polished diamond exports fell to $5.56 billion from $7.2 billion in 2011. Net exports of rough diamonds dropped 20.1% to $2.8 billion and net exports of polished diamonds slipped 24.9 percent to $4.3 billion, while net rough diamond imports dropped 12.9 percent to $3.8 billion. The United States is the largest market accounting for 36% of overall export market for polished diamonds while Hong Kong remains at second with 28 percent and Belgium at 8% coming in third.
In 2007, when diamonds still constituted almost 24% of Israel's total exports, 12% of world diamonds (by their value) were polished in the country. In 2010 this number decreased to 9%. , diamonds amounted to 28% of Israel's total exports and they were still 12% of the world's production.
Trading infrastructure
The industry is located in the "Diamond District", located in
Ramat Gan
Ramat Gan ( he, רָמַת גַּן or , ) is a city in the Tel Aviv District of Israel, located east of the municipality of Tel Aviv and part of the Tel Aviv metropolitan area. It is home to one of the world's major diamond exchanges, and many ...
in the
Tel Aviv District
The Tel Aviv District ( he, מָחוֹז תֵּל אָבִיב; ar, منطقة تل أبيب) is the smallest and most densely populated of the six administrative districts of Israel with a population of 1.35 million residents. It is 98.9% Jewi ...
. The complex is made up of four buildings, interconnected with walkways. The entire trading operation takes place in this complex.
[Israel Diamond Industry Organizations]
The
Diamond Tower in the district contains the world's largest diamond trading floor.
Israel's government funds a
non-profit
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
industry body, the
Israel Diamond Institute The Israel Diamond Institute (IDI) Group of Companies is a non-profit, public interest company that represents all organizations and institutions involved in Israel’s diamond industry. , to represent organisations and institutions involved in Israel's diamond industry.
Industry principles
The Israeli diamond industry guarantees all diamonds are 100% naturally made and participates in the
Kimberley Process, a certification scheme whose goal is to ensure no
blood diamonds
''Blood Diamond'' is a 2006 American political war action thriller film directed and co-produced by Edward Zwick and starring Leonardo DiCaprio, Jennifer Connelly, and Djimon Hounsou. The title refers to blood diamonds, which are diamonds ...
enter the marketplace.
[
Some human rights campaigners, however, say the Kimberley Process defines conflict diamonds too narrowly, only relating to uncut stones, enabling Israel's diamond-cutting industry to avoid attention. The Boycott, Divestment and Sanctions (BDS) campaign, among others, has called for diamonds processed in Israel to be considered conflict diamonds.South African Officials Must Reject Israeli Blood Diamonds and Secure Jobs in Diamond Beneficiation (IPSC, June 3, 2013)]
/ref>
See also
*Economy of Israel
The economy of Israel is a developed free-market economy. The prosperity of Israel's advanced economy allows the country to have a sophisticated welfare state, a powerful modern military said to possess a nuclear-weapons capability, modern inf ...
*Moshe Schnitzer
Moshe Schnitzer (1921 – August 16, 2007) was a Romanian Jewish immigrant to Israel who became a key player in the international diamond trade.
From 1967 to 1993 he was President of the Israel Diamond Exchange (IDE), which became the world's larg ...
, key player in the international diamond trade, from 1967-1993 President of the Israel Diamond Exchange
References
{{Economy of Israel
Economy of Israel