A cut above: UAE lab-grown diamond trade doubles as Dubai launches new hub

The United Arab Emirates has become a pivotal player in the global lab-grown diamond trade, with trade volumes doubling in just three years. According to the Dubai Multi Commodities Centre (DMCC), the UAE traded 76.9 million carats of lab-grown diamonds in 2025, marking a 91.5 per cent increase compared to the previous year. The value of this trade climbed 7.5 per cent to $1.3 billion, signaling robust growth in the sector. To support this expansion, DMCC has established a dedicated Lab-Grown Diamond Vertical, functioning independently from its operations in natural diamonds and colored stones. This move underscores the UAE’s strategic push to solidify its role in the rapidly evolving industry. The surge in lab-grown diamond trade began in earnest around 2022, when the UAE recorded 36.8 million carats in transactions. Since then, both import and re-export volumes have grown at comparable rates, indicating a broadening market reach. The rise in trade aligns with increasing interest in lab-grown diamonds beyond traditional jewelry applications. These synthetic gems are now being explored for advanced industrial uses due to their exceptional thermal, optical, and semiconductor properties. Applications under development include semiconductors, diamond wafers, quantum technology, aerospace components, and precision engineering tools. Ahmed bin Sulayem, executive chairman and chief executive of DMCC, emphasized the necessity of specialized infrastructure for lab-grown diamonds. “Lab-grown diamonds have reached the point where they need dedicated market infrastructure and a distinct economic case of their own,” he stated. The new vertical aims to connect diverse stakeholders, including producers, manufacturers, traders, investors, financial institutions, technology firms, and industrial users. By creating a centralized hub, Dubai seeks to facilitate collaboration and innovation within the sector. The UAE’s broader diamond trade, encompassing both natural and lab-grown varieties, hit a record $41.7 billion in 2025. This figure highlights the country’s growing influence in the global gemstone market. The DMCC has actively expanded its involvement in the lab-grown diamond space over recent years, hosting two symposia focused on the industry. Another such event is scheduled for 2027, further demonstrating the organization’s commitment to fostering dialogue and development in the field. Geographically, the lab-grown diamond industry is shaped by several key players. China leads in industrial-scale production and research, while India has built substantial manufacturing and processing capabilities. The United States continues to serve as a critical market for both technological advancements and consumer demand. The UAE’s emergence as a regional hub complements these global dynamics, offering a strategic location for international trade and investment. The shift toward lab-grown diamonds reflects broader trends in material science and sustainable resource management. As environmental concerns grow, the appeal of lab-grown alternatives, produced with lower carbon footprints, has increased. This trend is likely to accelerate as production technologies improve and costs decrease. The UAE’s initiative to create a dedicated platform for lab-grown diamonds positions it well to capitalize on these developments. DMCC’s efforts to distinguish the lab-grown diamond sector from traditional diamond markets highlight the unique challenges and opportunities inherent in this industry. Unlike natural diamonds, which rely heavily on geological resources and mining, lab-grown diamonds depend on scalable manufacturing processes and cutting-edge technology. This distinction necessitates tailored regulatory frameworks, market strategies, and infrastructure, all of which the UAE is working to establish through its new vertical. With the launch of the Lab-Grown Diamond Vertical, Dubai is poised to become a focal point for innovation and commerce in the sector. The city’s strategic location, coupled with its existing expertise in trade and logistics, provides a strong foundation for attracting global participants. As the industry evolves, the UAE’s role is expected to expand, influencing both market dynamics and technological progress worldwide.