JCK Take 3: Dubai’s Diamond Reset, Lab-Growns Eye AI, Solomon Bros. Buys Mervis

By JCK News Desk | October 27, 2026

Dubai Diamond Conference Calls for Natural Diamond “Strategic Reset”

The natural diamond industry needs a broad “strategic reset” as mine closures, declining rough supply, lab-grown diamonds, and shifting consumer demand reshape the business, industry leaders said at the seventh Dubai Diamond Conference.

The gathering, which convened Oct. 26 during Dubai’s Diamond Week, brought together representatives of producing and trading countries, manufacturers, retailers, financial institutions, and investors.

Ahmed Bin Sulayem (pictured), executive chairman and CEO of the Dubai Multi Commodities Centre (DMCC), told attendees that natural rough supply is undergoing an “irreversible contraction,” CNBC Africa reported.

He pointed to mine closures and production reductions in Canada, South Africa, and Botswana, arguing that producing countries should increasingly focus on securing greater value per carat and demonstrating diamonds’ provenance rather than emphasizing production volume.

The conference also discussed how the industry might rebuild consumer demand around natural diamonds’ rarity, heritage, and traceable origins. DMCC released The Swiss Parallel, a report that examines the Swiss mechanical watch industry’s response to the quartz crisis as a possible model for the diamond industry.

Rather than competing with cheaper products on volume, Swiss watchmakers repositioned their products around craftsmanship, heritage, and exclusivity. The report outlines seven proposed moves for natural diamonds, including better differentiation and authentication, collective governance, and new investment infrastructure.

Bin Sulayem said he supports South Africa’s position within the Kimberley Process that lab-grown diamonds should be called synthetics. But he also rejected what he called “alarmist framing” of lab-grown stones as an existential danger to the natural diamond business. Instead, he characterized them as a separate consumer choice and commercial category, arguing that natural diamonds should differentiate themselves through geological rarity and heritage.

The discussions took place against a difficult backdrop for the diamond industry but a strong period for Dubai as a trading hub. DMCC said Dubai’s diamond trade reached a record $41.7 billion across 359.5 million carats in 2025, with natural diamonds accounting for 95.8% of the value.

(Photo: Ahmed Bin Sulayem; courtesy of DMCC)

China’s Lab-Grown Diamond Producers Look Beyond Jewelry to AI, Chips

China’s lab-grown diamond manufacturers are increasingly looking to technology and industrial applications for future growth as expanding production drives down prices for gem-quality stones, Reuters reported Oct. 26.

China currently accounts for roughly half of global lab-grown diamond supply, and its production is projected to rise from 28 million carats in 2025 to 52 million carats by 2030, according to data from Ken Research cited by Reuters.

The shift reflects the pressure created by China’s rapid expansion of lab-grown diamond capacity. Feng Canjun, whose Jiaruifu factory produced 2 million carats last year, told Reuters that about 70% of its output currently goes to jewelry. By 2030, Feng hopes to reduce jewelry’s share of his business to no more than 30% while increasing the portion used in functional materials to more than 50%.

Feng said gross margins on gem-quality diamonds run about 30% to 40%, compared with roughly 50% for industrial diamonds.

Among the potential growth areas are semiconductor manufacturing and thermal management for AI servers and data centers. Diamond’s properties make it useful for removing heat generated by increasingly powerful electronics.

The transition could ultimately change the role jewelry plays in China’s lab-grown diamond industry. Jewelry remains by far the larger market for gem-quality stones, but Reuters found manufacturers increasingly betting that AI, semiconductors, quantum technology, and other industrial uses can provide higher-value outlets as continued production growth puts pressure on lab-grown gemstone prices.

Solomon Brothers Jewelers Acquires Mervis Diamond Importers

Solomon Brothers Jewelers has acquired Mervis Diamond Importers, giving the Atlanta-based family jeweler its first presence outside its home market and adding three stores in the Washington, D.C., region. Terms of the deal were not disclosed.

Under the new ownership, Mervis Diamond Importers will retain its name, staff, showrooms, warranties, lifetime care services, and upgrade programs. Cofounders Ronnie Mervis and Zed Mervis will remain involved, with Zed continuing to lead diamond buying and Ronnie remaining the company’s voice in its Washington radio advertising.

Solomon Brothers Jewelers said it plans to provide Mervis with additional resources in areas including diamond sourcing and inventory, e-commerce, marketing, technology, and operations, while leaving the in-store customer experience largely unchanged.

Mervis Diamond Importers traces its roots to South Africa, where Morris Mervis opened a store in Johannesburg in the 1930s. His sons Ronnie and Zed moved to the Washington area in 1981, initially importing and wholesaling South African diamonds before moving into retail. Mervis now operates stores in Tysons, Va.; Washington, D.C.; and Rockville, Md.

Solomon Brothers Jewelers was founded in Atlanta in 1982 by Ivan Solomon, father of current president Jaron Solomon. It operates three Georgia showrooms, in Buckhead, Alpharetta, and Sharpsburg, and specializes in engagement rings, diamonds, fine jewelry, luxury watches, and custom design.

The company said the Mervis acquisition is intended to serve as a model for Solomon Brothers to acquire other independent jewelers while preserving their names and local reputations.

The JCK News Desk uses AI to help research and produce the first draft of articles. This story was then reviewed by staff writer David Blomquist.