The Dubai Multi Commodities Centre (DMCC) has published a special edition of its Future of Trade report, titled Provenance, Traceability and Technology. This report focuses on enhancing the traceability of diamonds and highlights the importance of advanced technological solutions in maintaining the integrity and sustainability of the global diamond supply chain.
The report highlights technologies like blockchain, artificial intelligence (AI), synthetic DNA, laser microjets, QR codes, and physical tracers as tools being explored to address challenges related to changing consumer preferences, the growth of lab-grown diamonds, and new regulatory requirements, including the G7’s recent import restrictions.
Impact of G7 Sanctions on Russian Diamonds
In September 2024, the G7 implemented sanctions targeting Russian diamonds, introducing a blockchain-enabled traceability system. These restrictions have raised concerns within the industry regarding potential delays, increased costs, and regulatory complexity.
The DMCC report recommends creating a working group on traceability and transparency to help establish consistent global standards. This initiative would leverage industry expertise to advance and scale up the best available technologies for wider adoption.
Industry Leaders Gather to Discuss Key Issues
The publication follows DMCC’s Provenance, Traceability and Technology Forum, held during the Kimberley Process Intersessional Meeting in May 2024, where industry stakeholders gathered to discuss traceability solutions in the diamond supply chain.
Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, stressed the importance of adopting technologies such as AI, blockchain, and laser micro-machining to enhance transparency and provide greater support to artisanal mining communities. He said, “It is paramount that we collectively embrace technology and its increasingly critical role in the diamond industry’s evolution and supply chain. By utilising AI, blockchain, and laser micro-machining, the diamond industry must embrace the opportunities to enhance transparency while providing greater support to artisanal mining communities, both key objectives of the Kimberley Process.”
Looking Ahead: Dubai Diamond Week and Future Discussions
The report’s findings will be discussed at the Dubai Diamond Conference (DDC), taking place during Dubai Diamond Week from 11th November 2024. The conference will address challenges and opportunities in the industry amid global trade shifts and regulatory changes.
Dubai Diamond Week will also host the Kimberley Process Plenary and the Jewellery, Gems & Technology (JGT) Dubai trade fair, further highlighting the role of technology in shaping the future of the diamond industry.
