The Israel Diamond Exchange is planning to add 11,500 square meters of office space to its complex in Ramat-Gan.

IDE said its president, Avi Paz, signed the agreement for expansion Tuesday.

The expansion will have a significant effect on the diamond companies’ ability to expand their businesses as well as create the opportunity to absorb international companies that have expressed an interest in operating here for a long time, IDE said.

The lack of space in the IDE had become highly oppressive in recent years due to the fact that foreign companies are interested in moving their business centers to Israel, IDE said. The agreement will enable the bourse to continue its development and maintain its position of leadership in the world diamond industry.

The ten top floors of the “Yahalom” building will be incorporated within the secure complex of buildings in the Israel Diamond Exchange and will join the 80,000 square meters of office existing space in the complex. The infrastructure work required to connect the 10 floors to the complex is expected to be completed by the beginning of 2009 and occupants will be able to move in accordingly.

“This is a momentous achievement for the Israeli Diamond Industry and a special day for the IDE,” Paz said. “For years we have suffered from a shortage of space which began to restrict our activities. Now, finally, we can expand our businesses and welcome large international companies that wish to operate in Israel. I have no doubt that the Israeli Diamond Industry, in particular, and the Israeli economy, in general, will benefit from this transaction.”

JCK