Israel's polished exports up 5.8 percent in 2005

The diamond industry in Israel ended 2005 with growth in all areas of activity, including an all-time high of $6.7 billion in polished exports, up 5.8 percent over 2004, according to a media release.

The country's diamond report card was given in a joint press conference that included: Israel Diamond Institute (IDI) chairman Simcha Lustig; Israel Diamond Exchange (IDE) president Avi Paz; Israel Diamond Manufacturers' Association (IsDMA) president Moti Ganz; and Israel Ministry of Industry, Trade and Labor's Diamond Controller Shmuel Mordechai.

Also addressing the media were IDI managing director Efraim Raviv, IDE managing director Yair Cohen and IsDMA managing director Moti Besser.

In addition to the rise in polished exports, rough diamond exports from Israel rose 20.5 percent in 2005 to reach $3.517 billion, up from $2.92 billion in 2004.

Net imports of rough diamonds totaled $5.318 billion, an increase of 3.2 percent over $5.151 billion in 2004. Israel's imports of polished diamonds increased 9.3 percent in 2005 to reach $3.897 billion, as compared to $3.564 billion in 2004.

While the United States remained the major export market for Israel's polished diamonds, its export share declined from 67 percent in 2004 to 61 percent in 2005, with a notable shift toward Far Eastern and European markets. Diamond leaders, however, touted this as a positive trend, and pointed to a greater diversification in export markets. Hong Kong accounted for 14 percent of Israel's polished exports followed by Belgium at 8 percent, Switzerland with 5 percent, England and Japan with 2 percent each and China 1.5 percent.

Polished exports to the U.S. and Hong Kong still rose substantially. Gross polished exports to the U.S. stood at $7.443 billion in 2005, compared to $7.039 billion in 2004. Gross exports to Hong Kong rose to $1.795 billion, compared to $1.411 billion last year.

Rough diamond imports from the Diamond Trading Co., (DTC) remained stable in 2005, at about $1 million during the year, representing 18 percent of total rough imports.

Bank debt of the industry ratcheted up higher during 2005 to $2.042 billion, up from $1.782 billion in 2004. Currently five Israeli banks share the credit to the industry, and industry leaders said that they were investing great efforts in attracting additional banks. They said that negotiations were well underway with and Indian bank, and were beginning with Bank Hapoalim, Israel's largest bank.

In 2005, Israel continued to manufacture a large portion of its polished exports. Of the $6.7 billion of polished diamonds exported, $2.81 billion was manufactured in Israel and the rest in Israeli-owned factories abroad. This figure is similar to 2004 and an increase from the amount locally manufactured in 2003. Larger stones of 25 points and above are mainly manufactured in Israel.

Leaders also spoke of the industry's improvements in technology, marketing and rough supply during 2005.

They are optimistic that this year will be an even better year for the industry. The World Diamond Congress, the official meeting of the WFDB and IDMA, will take place in Israel in June 2006 and is expected to bring hundreds of participants to the country. Industry leaders hope it will be a springboard for business opportunities.