Israel Hub of the Diamond World Tradition & Innovation Shmuel Schnitzer- President IDE Moti Besser – Managing Director IDE
Israel Hub of the Diamond World
Tradition & Innovation
Shmuel Schnitzer- President IDE Moti Besser – Managing Director IDE
Annual export of rough & polished - $ 10 Billion
Total annual turnover - $28 Billion
Polished export destinations:
U.S.A 38% Hong Kong 30%
Total credit to the industry - $1.5 Billion
Number of employees in Israel - 20,000
Number of employees, worldwide - 55,000
Number of license holders – 2,000
Diamonds constitute 20% of Israel’s total industrial export
• 100,000 sq. - Internal & External Security
• 2 trade halls for polished & rough
• Modern cutting & polishing center
• 1,400 Diamond companies,2,200 offices,330,000 visitors
• 5 Diamond Banks
• Shipping Companies
• Tax Depot
• Government office - Diamond Controller (the Regulator)
• Leading mining companies
• Post Office
• Synagogue, clinic, gym, restaurants, pensioner’s club ,dentist, barber
• Training courses for new members:
:Gemology, Ethics, Marketing, Sales, Security.
• Excellence in management courses.
• Enrichment classes - Mediation/ Negotiation,
online sales.
• Contribution to the community - Hospitals, Children at Risk ,Foundation for handicapped children.
• Welfare Funds: for supporting those in need.
*Sister company : Israel Diamond Exchange Enterprises is directly responsible for building and infrastructure administration and maintenance
0
10'000
20'000
30'000
40'000
50'000
60'000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
5'509 6'333
6'709 6'610
7'076
9'553
5'824
8'892 10'700
8'400 9'161 9'324
Israel Industrial Export Israel Diamond Export
-500
500
1500
2500
3500
4500
5500
6500
7500
Trend line
(8% per year)
-15%
-13%
+20%
Average annual growth over decade
U.S - 2.6% Europe - 1.0% Israel - 4.0%
Global financial
crisis 2008/9
Tech stocks fall And September 11
Asian financial crisis
The Gulf War
Global Industry crisis
7 4
8
38
30
13
Switzerland
England
Belgium
USA
Hong Kong
Other
Rough Import
($1,000)
Polished Export
($1,000) Year
56 70 1940
9,000 8,800 1950
49,200 58,000 1960
154,000 202,000 1970
995,000 1,409,000 1980
2,168,000 2,783,000 1990
3,869,000 5,322,000 2000
4,413,000 7,200,000 2011
3,832,000 5,563,000 2012
3,990,531 6,222,208 2013
4,022,618 6,263,398 2014
$0
$500
$1'000
$1'500
$2'000
$2'500
$3'000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0.0
5.0
10.0
15.0
20.0
25.0
2008 2009 2010 2011 2012 2013 2014
19.0
12.4
18.0
21.7
19.5
22.5 23.90
52% 52% 49% 45% 43% 42% 42% 39% 40%
20% 20% 20% 25% 29% 29% 28% 35% 32%
17% 17% 17% 18% 17% 17% 18% 17% 16%
11% 11% 13% 13% 12% 12% 12% 9% 12%
2006 2007 2008 2009 2010 2011 2012 2013 2014
All Others
Belgium
India
Israel
Government License Diamond Controller
Diamond Bourse Member Requirements
Ethical Code
AML for Diamond Sector
Rules for Synthetics
The Business Leverage We Offer Our Members
Cooperation among the world’s diamond bourses to promote the
business of exchange members – acting together as an engine
of worldwide diamond trade.
Business promotion at minimum cost – No expenses on booths, advertising, couriers or insurance
• Israel Diamond Week at the DDC, November 2014
• International Diamond Week in Israel , February 2015 • International Rough Diamond Week , April 2015 • Presidents’ meeting, June 2015 • International Diamond Week in Israel , September 2015
Modern Manufacturing Center
Manufacturing Wing; Polishing Wheels, Sawing, Laser Cutting, Polariscope (pressure machine)
Technological Services; Sarine, (Galaxy) ,OGI, Color machine
Gemological Services Professional Training Courses
$0
$500
$1'000
$1'500
$2'000
$2'500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$1'470 $1'496 $1'596
$1'782
$2'045 $2'084 $2'136 $2'285
$1'615 $1'626 $1'628 $1'575 $1'444 $1'400
1עמודה
13.7% 11.0%
10.4% 9.8%
10.5% 11.5%
10.6%
12.4% 14.10%
9.60%
7.40%
9.60% 8.60%
7.8%
Finance Intensity
= Debt
(Export + Import)
45% 41%
27% 23%
28%
24% 22% 2.2 2.4
3.7
4.3
3.6
4.2 4.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
9/2008 2009 2010 2011 2012 2013 2014
Level of Financing Financing Months Polished Export
Debt
Debt .
Polished Export
Erik Jens: CEO of ABN AMRO International Diamond & Jewelry Group
• The Israeli Diamond Industry is one of the world’s largest and most diverse trading centers in the world, enjoying unique infrastructure both advanced and convenient (all under one roof) , as well as close working relationship with the government.
• Israeli diamantaires have immense knowhow , passed on through generations, in manufacturing, development of new cuts, trading and technology
• Israel is a major source of innovation - Israeli technological developments are later adopted worldwide: lasers, Ogi, Sarin, auto polishing, bruting and table opening machines. Israelis are innovators, quick to respond to changes
• Israelis constantly re-invent themselves: from smalls to fancies to large, from local based manufacturing - to more cost effective manufacturing overseas, from only manufacturing - to trading, from passive to active marketing.
• The Industry - stable and responsible - gradual, measured growth, conservative regarding financial risks.
• The main reason for the existence of a diamond center in Israel is that many of the largest diamond companies belong to Israelis who prefer to run their businesses locally.
• The continued prosperity of the Israeli Diamond Industry owes much to its ability to implement the necessary changes in the managerial and organizational culture.