The Dubai Multi Commodities Centre (DMCC) is betting big on advanced technology like blockchain, AI, laser microprocessing, and synthetic DNA to boost traceability and transparency in the global diamond supply chain. These innovations could redefine how we think about the origins of our diamonds.
The Future of Diamond Trading Is Here
In its latest report, "The Future of Trade," released in September, DMCC outlines various high-tech solutions for challenges in the diamond industry. The report, titled "Origins, Traceability, and Technology," delves into changing consumer behavior, the rise of lab-grown diamonds, and the challenges posed by G7 sanctions on Russian diamonds, all while calling for immediate action to ensure the integrity and sustainability of the diamond value chain.
Starting March 1, 2025, G7 sanctions on Russian diamonds will involve a blockchain traceability system, and DMCC’s report urges the creation of an expert working group to standardize "the minimum feasible level of traceability and transparency." This could help maintain regulatory consistency while avoiding excessive restrictions.
Embracing the High-Tech Era of Diamond Traceability
DMCC's Executive Chairman and CEO, Ahmed Bin Sulayem, emphasized the need for the diamond industry to embrace advanced technologies to support its evolving processes. He advocated using high-tech solutions to drive transparency and accountability in the sector.
To facilitate tech support across the value chain, the industry should establish a comprehensive registry of available technologies, covering their detailed analytical capabilities, limitations, special features, and areas of technical and economic feasibility.
Revolutionizing Payments for Diamond Miners and Retailers
The report also calls for the development of innovative, tech-based payment systems to ensure timely compensation for miners and enhance credit flexibility for retailers. This new approach could transform financial interactions across the diamond supply chain, making transactions fairer and more transparent.
The report and related proposals were developed following the "Origins, Traceability, and Technology" forum at the Kimberly Process Mid-Term Meeting in Dubai in May 2024. Further discussions are scheduled for the Dubai Diamond Conference on November 11, during Dubai Diamond Week, which will also include the Kimberly Process Plenary from November 12 to 15.