Antwerp diamond industry faces historic crisis amid global competition
Antwerp's diamond sector, once the largest in the world, is facing a major crisis, VRT NWS reported on Saturday. According to the Antwerp World Diamond Centre (AWDC), trade in 2023 fell by 25 per cent compared to the previous year, to a total of 23.7 billion euros. This follows a 20 per cent decline in 2022.
The decline is due to a drop in global demand, a rise in synthetic diamonds and the EU ban on Russian diamonds, which once accounted for 35 per cent of Antwerp's imports. While the industry supports the ban, it's vital that other G7 countries implement similarly stringent controls, AWDC CEO Karen Rentmeesters said.
Dubai has now overtaken Antwerp as the leading diamond hub, benefiting from fewer restrictions. Competing markets, including India and some African countries, are poised to claim a share of Antwerp's shrinking dominance.
Bureaucratic hurdles
Industry leaders point to bureaucratic hurdles such as restricted access to bank accounts, delayed visas and inconsistent customs regulations as key obstacles. Policy changes are needed to secure Antwerp's future in the global diamond trade, said Bart De Hantsetters, CEO of Diamcad, a global authority on diamond cutting.
Antwerp serves as the gateway for all diamonds entering and leaving Europe. It is home to 1,400 diamond companies and employs some 3,500 people. However, with growing doubts about its future as a global hub, there are growing calls for the Belgian government to ease regulations and increase support for the industry.
#FlandersNewsService | © BELGA PHOTO NICOLAS MAETERLINCK
Related news
