Cutting-edge technologies like blockchain, artificial intelligence, laser micro-engraving, and synthetic DNA are being championed by the Dubai Multi Commodities Centre (DMCC) to enhance transparency and traceability across the global diamond supply chain. These innovations are at the heart of a recently published report titled “Origins, Traceability, and Technology”, which outlines solutions for the diamond industry.
A Call for Immediate Action
The DMCC’s Future of Trade report, released in September, addresses critical challenges facing the diamond sector, including:
- Shifts in consumer behavior.
- The rapid rise of lab-grown diamonds.
- Geopolitical pressures, particularly from G7 sanctions on Russian diamonds.
The report emphasizes the urgency of maintaining the integrity and sustainability of the diamond value chain, calling for immediate action to adopt technology-based solutions.
Blockchain-Powered G7 Compliance
From March 1, 2025, G7 nations will implement a blockchain traceability system as part of their sanctions on Russian diamonds. The report warns of potential challenges, such as delays, additional costs, and overreach in regulatory enforcement, while recommending the establishment of an expert task force to set minimum feasible standards for global traceability.
This approach aims to standardize global regulations, ensuring a consistent framework without overly restricting the diamond trade.
Driving Technological Integration
DMCC’s Executive Chairman and CEO Ahmed Bin Sulayem stresses the importance of embracing advanced technologies to align with the rapidly evolving diamond industry. To support this vision, the report advocates for:
- A comprehensive registry of technologies detailing their analytical capabilities, limitations, and economic feasibility across the value chain.
- Developing technology-driven payment systems to ensure fair compensation for miners and improved credit flexibility for retailers.
Global Forums for Industry Collaboration
The proposals in the report were first introduced during the Kimberley Process Mid-Term Plenary in Dubai in May 2024. Further discussions will take place during the Dubai Diamond Conference on November 11, 2024, as part of Dubai Diamond Week, culminating in the Kimberley Process plenary from November 12 to 15.