Surat diamond bourse project gets fillip

Dubai-based Gold Souk and Dubai Multi Commodities Center (DMCC) have decided to form an alliance with the state government

The Surat Diamond Association (SDA) is bullish about the coming Surat Hira Bourse, a diamond exchange. Following Gujarat finance minister Saurabh Patel’s recent visit to Dubai, “Dubai-based Gold Souk and Dubai Multi Commodities Center (DMDC) decided to form an alliance with the state government to help set up a diamond business in Surat”, said a state government spokesperson.

Dinesh Navadiya, president of SDA, said, “We have not officially heard from the state government yet. However, the trip has provided a fillip to the Surat Hira Bourse, in terms of international reach. So far, we have received space requirement applications from traders alone, with about 9,500 bookings for 70,000-80,000 sq yards. We hope to hear from the government on land allotment soon.”

He added there would be additional space for ancillary services such as banks and financial institutions.

For diamonds, DMCC has strong ties with producer markets in Africa, cutting centres in Asia and consumers in Europe, China and the US.

Gold Souk is a marketplace comprising about 300 retailers who trade almost exclusively in jewellery. These retailers include established stores such as Damas, ARY Jewellery, Shyam Jewellery and Joy Alukkas. At any given point, the marketplace has about 10 tonnes of gold.

SDA members say for Surat Hira Bourse, the association aims to attract global diamond traders, including those from West Asia.

Registration of the Surat Hira Bourse is underway. Expected to start operations in two years, the exchange is being set up at a cost of Rs 2,000 crore. The bourse will bring those interested in the business of the precious commodity under one roof.

Kirti Shah, a Surat-based diamond polisher and trader, said various concerns had to be addressed before the bourse began operations. “Lack of a proper airport, an international one, will affect the bourse. Also, land is yet to be allotted and delay in this will further defer project completion,” Shah added.