The Antwerp World Diamond Centre (AWDC) is asking the Belgian government to help improve the operating environment in the country following a “crisis” year for the industry.
Last year saw a 25% decline in Belgium’s total import and export figures due to “significant economic factors” that impacted both the local and international sectors, the AWDC said.
“The diamond industry is experiencing a severe global crisis,” says Karen Rentmeesters, CEO of AWDC. “Internationally, the sector is caught in a perfect storm, causing declining figures across all trading hubs. Weak consumer markets and competition from synthetic diamonds are leading to historically low demand for natural diamonds, resulting in rock-bottom prices. These factors inevitably affect Antwerp. Additionally, geopolitical tensions have resulted in Group of Seven (G7) sanctions on Russian diamonds, which have particularly hurt the Belgian diamond industry,” Rentmeesters explained.
The organization believes government support is “crucial” to facilitate the arrival of international players to the Belgian trade who are looking to relocate their operations. Those companies face obstacles such as Belgian banks making it almost impossible for them to open a local bank account, struggles to obtain work visas for foreign employees with specific expertise, and visa requirements that prevent them from accessing their goods. Additionally, the lack of clear agreements at the Diamond Office, which oversees the import and export of diamonds, has led to delayed shipments and fines, Rentmeesters noted.
Yet the diamond industry, which employs 3,500 people, is still an important part of Belgium’s economy, the AWDC stressed. “A government that supports the sector and welcomes entrepreneurs can help reverse the negative trend in these figures,” Rentmeesters said. “Under such a policy, we are ready to do our part to turn things around.”
Image: The AWDC trading floor. (AWDC)