The colored gemstone market in Dubai is set to expand faster than other jewelry categories in the next five years, according to a survey released Tuesday.
The findings of the survey by the Dubai Gems Club, a subsidiary of the Dubai Multi Commodities Centre, were released at the ICA International Gem Fair 2008, the region’s first dedicated colored stones trade show, being held in Dubai this week.
The survey, conducted by U.S.-based Jewelry Industry Research Institute and UAE-based BUZ Consulting, reveal that colored stones will account for 26 percent of total jewelry sales in Dubai by 2011. Without historical records, it’s estimated that colored stones sales currently represent a small percentage of overall jewelry sales.
“The ready availability of statistics and market data have become critical in today’s information age, as they facilitate business leaders in making timely decisions that could impact the future of an organization,” said Gaiti Rabbani, executive director, Coloured Stones and Pearls Division, DMCC. “Dubai has taken a proactive step through this new research commissioned by DMCC. This report will become a significant tool for existing jewelry businesses in Dubai and new entrants to the market. ”
On a global basis, the market for all gemstones stands at $80 billion, representing approximately 55 percent of total global jewelry industry sales. The global gemstone market includes roughly $10billion of colored stones and $70 billion of diamonds and diamond jewelry.
The survey also reveals that colored stones trade is expected to grow at around six percent annually by 2010, in comparison to the growth rate of diamonds, gold and all other forms of jewelry.
“The projections show that the colored stones market will post exceptionally strong above-average growth over the next decade, both in Dubai and the Gulf region, as well as globally,” said Kenneth Gassman, founder and president of Jewelry Research Institute of America. “Colored stones jewelry demand is expected to surpass demand for other jewelry categories. Dubai is particularly well-positioned to take advantage of the increased trading requirements of this rapidly growing jewelry segment and further capitalize on the growing tourism market.”
Colored gemstone dealers said rubies, sapphires, and emeralds were the fastest selling colored gemstones, comprising 44 percent, 28 percent and 24 percent respectively of their gemstone inventory. Traders and consumers also highlighted their preference for oval shaped colored stones set in 18k white and yellow gold.
The survey consisted of interviews with 50 traders as well as over 100 consumers comprising jewelry shoppers in Dubai. The survey was released at the ICA International Gem Fair Dubai 2008, which ended Oct. 15. This event, held under the patronage of DMCC, was organized by the International Colored Gemstone Association (ICA) and supported by the Middle East GemBureau.