Due to increasing tension after US and Israel attacks on Iran, closure of UAE airspace is hampering the supplies via Dubai, which may lead to shortage of gold and raw natural diamonds in India. This Gulf trading hub – India’s largest supplier of rough diamonds and second-largest source of gold bars – is an essential transit route for the world’s largest bullion-consumer country. India imports 800-850 tonnes of gold every year, of which 50-60 per cent comes through Dubai, and a large part of the rough stones also comes from Dubai which runs its large polishing industry. Due to this, we may see an increase in the prices of diamond and gold jewelery in the coming days.
Consignment movement may be slow
Diamond traders working in Dubai expressed concern on Saturday after missile attacks on the Gulf trade hub Dubai. This attack happened after a major attack on Iran by Israel and America, due to which the fear of disruption in business and trade increased. Traders in Surat said that the immediate result was that flight operations were stopped. With this step, the movement of people and consignments related to the diamond sector may slow down or stop for some time. Industry sources in Surat said that trading activity related to Dubai may come to a halt for the time being, as the city acts as an important transit and trading point for the movement of diamonds between India and the international market. With air traffic halted, traders are expecting delays in meetings, shipments and payments, which depend on speedy logistics.
250 Indian diamond traders have office in Emirates
More than 70 percent of rough and polished diamonds are sent to different places through Dubai. According to traders, about 250 diamond traders from India run offices in the Emirates. About 1,500 Gujarati laborers from Mumbai, Surat and other parts of the state work in diamond companies there, making the situation a matter of concern for families and businesses at home. Residents of Dubai said in the TOI report that the missiles fired at the city were intercepted and destroyed in the air. In a statement shared by the Emirates News Agency, the UAE Defense Ministry said the country was hit by a “blatant attack” by Iranian ballistic missiles. It was also said that the air defense system intercepted many missiles very well.
Businessmen’s trip to Dubai canceled
Diamond traders from Mumbai and Surat, who often travel to Dubai to buy, sell and coordinate with foreign clients, have reportedly canceled or postponed their scheduled visits. This uncertainty has also increased the concern of those who have offices, inventory and other assets in this area. Surat’s diamond trader Shivam Navadiya said in the media report that after the air strike, I canceled my plan to go to Dubai. If the situation does not improve soon, this attack will have a very bad impact on the diamond trade. Dubai-based diamond trader Bharat Patel said in the TOI report that the traders, who are headquartered in Dubai but operate across the world, said there was no major damage to the property. Everyday life is the same as before. However, the airport has been closed, and this will impact global trade.
Surat to Dubai and Sharjah flights closed
This disruption has also affected regional connectivity. Flight services from Surat to Dubai and Sharjah were stopped amid the changing circumstances, further reducing travel options for traders and workers who depend on this corridor. Many people of Diamond City are planning their international connections from Dubai due to its global connectivity and easy transit facilities. Traders said they were closely following the development and assessing its impact on ongoing transactions as uncertainty looms over one of the world’s premier diamond trading hubs.