Israel Finance Minister Wants Country to Be Free-Trade Zone for Diamonds

Israeli Finance Minister Bezalel Smotrich will include a proposition in the country’s 2026 budget to make the country a free-trade zone for diamonds, he said.

Smotrich announced the move, which Israel Diamond Exchange (IDE) president Nissim Zuaretz spearheaded, during a visit to the bourse Sunday, it revealed on its Instagram page.

Creating a free-trade zone has “advantages that outweigh the disadvantages,” the finance minister told Israeli news outlet Globes. He acknowledged that while Israel would lose taxes, the resulting ecosystem could contribute to the country. Last year, diamonds comprised approximately 8% of Israel’s exports.

Zuaretz first stated his intention to create a free-trade zone for diamonds last year, when he became president of the exchange. His aim was to create jobs and trading activity for Israelis and help revive the country’s status as a location for rough sales. The IDE chief sees Dubai’s free-trade zone as a model Israel can emulate. That structure would include a complete exemption from import and export duties and currency restrictions, as well as personal or corporate taxes, for companies doing business in Israel.

Image: The Israel Diamond Exchange. (Shutterstock)