Escalating tensions involving Iran have significantly disrupted the diamond trade between India and the United Arab Emirates, halting the movement of rough and polished diamonds along one of the industry’s most important trading corridors.
Since late February, the conflict has intensified following drone and ballistic missile attacks launched by Iran against targets in the UAE. The strikes came in response to military actions carried out by the United States and Israel, creating a volatile security environment that has disrupted regional logistics and air connectivity.
The impact on the diamond sector has been immediate. The UAE is a major supplier of rough diamonds to India, accounting for more than two-thirds of the country’s rough imports, while India exports over 90% of the UAE’s polished diamonds. With the suspension of most commercial flights between the two nations, the regular flow of diamond parcels has effectively stopped.
Under normal conditions, approximately 400 to 500 export parcels move daily between India and Dubai through secure air cargo channels. However, the cancellation of flights has halted shipments almost entirely, leaving traders unable to move goods through established logistics networks.
According to Vipul Shah, managing director of Asian Star, the disruption has brought regional diamond trade to a standstill. He noted that exports and imports linked to the Middle East have effectively stopped because there are currently no viable logistics routes available for transporting goods.
The situation has also affected scheduled rough diamond sales. Koin International and Trans Atlantic Gem Sales (TAGS) have both postponed rough diamond tenders that were planned for last week, with new dates yet to be confirmed.
Meanwhile, the conflict has disrupted operations at the Dubai Multi Commodities Centre, which hosts the Dubai Diamond Exchange—one of the world’s major diamond trading hubs. Officials at DMCC have not issued any public comment regarding the situation.
Industry participants say the prolonged disruption could create delays across the global diamond supply chain, as India remains the world’s largest centre for diamond cutting and polishing, while Dubai acts as a crucial trading and distribution hub connecting producers, manufacturers, and international markets.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
