A new team will examine the establishment of a free trade area for diamond trading

by time news

The Director General of the Ministry of Economy and Industry, Dr. Ron Malka, at the Yakir Diamond Industry Ceremony: “We are happy about the excellent year that the diamond industry in Israel has experienced, and continue to be committed to its success.”

Dr. Malka: The Ministry of Economy and Industry, together with the Tax Authority, will coordinate a government team that will examine the establishment of a free trade area for diamonds in the stock exchange complex in Ramat Gan, in order to compete on equal terms with the major global trade centers in the industry.

The Israeli diamond industry, which marks an excellent year for the industry, held today (08.12.2021) in Ramat Gan the Beloved Diamond Industry Ceremony for 2021 and presented awards to 12 of the industry’s senior veterans.

During the ceremony, which is organized every two years by the Israel Diamond Manufacturers Association, the Director General of the Ministry of Economy and Industry, Dr. Ron Malka, noted that it is very gratifying to see that 2021 marks increases in the industry compared to 2019 (and of course 2020), and encourages “Jewelry in the current holiday season in the United States (the main target market for Israeli diamonds) is breaking records, but it is important not to freeze the yeast and help the industry return to the leading position at the global level it was only about a decade ago.”

Dr. Malka mentioned the importance of the Avraham Agreements and specifically the diamond trade that is gaining momentum between the stock exchange in Ramat Gan and the one in Dubai, as well as attempts by the Ministry of Economy and Industry to test new tools for positioning the Israeli diamond exchange in a more attractive position.

Nissim Zoarz, president of the Diamond Manufacturers Association, said: “Despite the difficult years we went through, we continued to work and we are now, as can be seen from trade data, at the beginning of a new and encouraging period. We will continue to work for the industry in Israel “And Mr. Arnon Yuval and in full cooperation with the government, for the necessary changes in the industry in order for him to return to being one of the leaders in the world, as he was during most of the period in which he was led by the twelve signal recipients today.”

According to the Diamond, Jewelry and Gems Administration at the Ministry of Economy and Industry, net polished diamond imports in the first eleven months of the year amounted to about $ 2.66 billion, an increase of about 102% compared to the same period in 2020 (when in November there was an increase of About 4.3% compared to November last year) while net polished diamond exports, which amounted to about $ 3.4 billion, increased by 56% compared to the last eleven months of 2020 (when in November 2021 there was actually a decrease of about 8 % Compared to November last year).

In total in the first eleven months of the year, net imports of rough diamonds to Israel amounted to about $ 1.83 billion, an increase of about 103.5% compared to the same period last year (in November there was an increase of about 17.6% compared to November 2020 Net rough diamond exports during that period amounted to about $ 1.6 billion, an increase of about 122% compared to the first eleven months of 2020 (when in November there was an increase of about 17.7% compared to November last year).

In the past month, exports of rough diamonds to the United Arab Emirates amounted to about $ 12.5 million, which is about 8% of Israel’s total rough diamond exports in November. In addition, rough diamonds worth about $ 22 million will be imported to Israel from the United Arab Emirates, which constitutes about 13% of the total rough diamonds imported to Israel in November.

• Attached is a breakdown of the monthly data

Background – Free Trade Area Plan – For several years now, the diamond industry in Israel has been trying to promote the issue of establishing a free trade area for diamonds in Israel in the Ramat Gan Diamond Exchange complex, so that foreign companies operating in the same area will be exempt from income tax or corporation tax. An Israeli woman will go beyond the scope of the envelope and be calculated as a normal transaction in terms of the tax laws applicable in Israel). If this initiative gains a foothold in the stock market, she claims, it will be able to close the gap between it and other places in the world where such free trade areas exist (such as Dubai and Switzerland, which bite the Israeli industrial analyst) and can regain its place as the global diamond trade center. In terms of foreign diamond companies looking for a base from which they will be able to conduct their business (and prefer to operate in such areas).

During the corona plague and the difficult period the industry went through in the years 2019-2020, the Ministry of Economy and Industry examined ways to help industry and among other things, chose to focus on examining the idea.

According to an investigation by the Ministry of Economy and Industry, the establishment of the area may eventually lead to revenues for the state treasury of tens of millions of shekels a year and the addition of hundreds of jobs in the industry, due to foreign companies operating in Israel and the accompanying activities. To the diamond industry, so the expectation is that not only will state revenues not be harmed, but the state budget will also benefit from it, as will the Israeli employment market.

In order to examine the issue in depth, as well as all the consequences it may have, the CEO spoke with Eran Yaakov, head of the Tax Authority, and agreed that a joint team will be set up to examine the issue in terms of its cost and benefits.

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