"The situation is catastrophic": The diamond industry is at a historic low - The Exchange President resigned

Diamond exports from Israel continue to plummet to an unprecedented low. According to data from the Diamond Controller's office, cumulative exports from the beginning of 2026 to the end of June totaled only $2.4 billion — the lowest figure in the industry's history. For comparison, in 2015, the peak year for polished diamond exports from Israel, exports totaled about $7 billion — more than three times the current volume. The total trade volume in the industry, including the import of rough diamonds and export of polished diamonds, has also dropped to a low of about $4 billion, compared to about $12 billion in peak years.

Natalie Gutman, the Diamond Controller, stated:

"The state of the industry is unprecedented. Today, the volume of diamond trade is only a third of what it was a decade ago. Since 2022, there has been a consistent decline, and we are now at an all-time low. Israel was once one of the largest trading centers in the world, but today it is suffering both from the global crisis in the industry and from the rise of Dubai as an international trading center, thanks to significant tax advantages that have attracted Israeli traders there as well. The massive penetration of lab-grown diamonds, whose price is significantly lower, also hurts the demand for natural diamonds."

Additionally, the 10% tariff imposed by US President Donald Trump on diamond imports to the US, which came into effect this morning, is a heavy blow to the industry. The US was previously a destination for about 20% of Israel's diamond exports. The State of Israel is currently conducting contacts with the American administration to seek a reduction in the tariff, as well as with the Ministry of Finance to promote tax relief for the industry.

The global decline in demand is also reflected in the data of the diamond giant De Beers, which is up for sale for the first time in its history. This decline is attributed to shifting consumption habits among young people, reduced demand in China, and the expansion of lab-grown diamonds. In 2025, De Beers recorded a 13% drop in sales.

Meanwhile, Diamond Exchange President Nissim Zuaretz announced his resignation after two years in the position. Elections for the exchange presidency are expected to be moved up to November.

Zuaretz remarked:

"Israel has been hit harder than anyone. The Israeli government's taxation problem on the industry is difficult, while in Belgium and Dubai they grant significant benefits to investors and foreign companies. If the situation does not change, it will be possible to say goodbye to the Diamond Exchange in Israel. As of this morning, Donald Trump's tariffs on diamond imports to the US have come into effect, while Belgium exports there without tariffs and we pay 10%. My private company also exports to the US, and if there is no choice, I will move to operate from Belgium."