Cyprus can become a centre for
jewellery sales and offer all the
advantages of Dubai while being
in Europe
part. Cyprus can become a centre for jewellery sales and offer all the advantages of
Dubai while being in Europe.”
Switzerland is currently taking advantage
of what appears to be something of an exodus from Antwerp by offering the same tax
status as Dubai but, says Melas, “most of the
Jewish diamond dealers working in Belgium
would rather be in Cyprus where they can
take weekend trips to Israel.”
Surprisingly, the Executive Chairman of
the Dubai Diamond Exchange is very relaxed
about the possibility of competition from
Cyprus. “When I have spoken to key figures
in Antwerp and Ramat Gan [near Tel Aviv]
about the Cyprus project, they have become
very tense,” Melas recalls. “In contrast,
Ahmed Bin Sulayem of the Dubai Exchange
is OK with the idea. ‘Rather than Antwerp,
I prefer a place like Cyprus that is nearer to
us so we both do business,’ he says. I don’t
know if he is interested in investing in the
Cyprus Diamond Exchange or in having a
relationship between the two. And he is not
the only one in the business who is keeping
an eye on Cyprus. The Vice Chairman of
the Shanghai Diamond Exchange is also extremely interested.”
The government needs to put its tax specialists together with the tax advisors of the
diamond traders so that they come up with a
framework that everyone is happy with, and
of course, one that complies with EU rules
and regulations.
“The tax structure will be the key to kickstarting everything else,” Melas believes. “If
Russians can buy diamonds at low prices
they will buy them instead of putting their
money in the bank. Moreover, Cyprus needs
to create closer relationships with India and
Africa. I am shocked at how ignorant we
are about India as a source of tourism. The
biggest buyers in Dubai are the Indians and
the Russians. Who has the most money in
Switzerland? The Indians and the British,
most of them of Indian origin! India is
presently one of the top 12 tourism traffic
sources for Switzerland. And don’t forget
that the British, the Russians, the Germans all come to Cyprus in the summer
because they want to sit and bake in the
sun. Indians like it cold, they like the cool
hillside resorts and they tend to travel in
the winter months. If Cyprus promotes
itself as a winter destination in India, you
can be sure that Indian jewellers will want
to be part of the retail set-up in the Diamond Exchange.”
The facts and figures speak for themselves. Diamond prices have increased
by about 15% each year since 1949 and
worldwide demand for polished and
rough diamonds continues to rise. In
2001, Dubai’s diamond trade was virtually non-existent. In the space of a decade
it had grown to be worth almost $40
billion and Dubai has successfully positioned itself as one of the world’s leading
diamond centres alongside the likes of
Antwerp, New York and Mumbai. Located in the iconic Almas Tower, at the
crossroads of producing and consuming
countries, the Dubai Diamond Exchange
provides services to over 500 regional and
international diamond companies including renowned brands such as DeBeers,
the International Gemological Institute
and Dhamani Jewels amongst others.
The Chinese and Indian markets for
diamonds continue to grow strongly, following a 10% rise in 2012. It is unlikely
that the predicted surge in global demand
for diamond jewellery will struggle to
be matched by the supply of diamonds,
which means higher prices and greater
competition among the exchanges where
rough diamonds are traded.
Will Cyprus have the necessary vision,
daring and professionalism to join the
elite club? Over to you, Mr President.
20 Gold the international investment, finance & professional services magazine of cyprus
Yianni Melas
Yianni Melas’ interest in – and obsession with
– gems and jewellery began at the age of four
when he was told that Napoleon Bonaparte
had given his great-great-grandfather a jewelstudded sword. Not only that, it was apparently
buried in his backyard. Thereafter, Melas’ garden on the Greek island of Rhodes became filled
with holes as he embarked on what evolved into
a lifetime’s search for treasure. Melas’ love of
gems also grew from visits to his godfather’s
jewellery store. He was sent to school in the
United States in 1974 and he eventually found
his way to the Gemological Institute of America.
After graduating, he became an instructor at
the GIA where he earned a reputation for his
dynamic teaching style. While at the GIA, Melas
met Helmut Swarovski, CEO of the renowned
optics and glass empire, based in Austria. Soon
thereafter, he began working for Swarovski,
acquiring rough gems from several remote
locations around the world. He focused on
making connections with local people everywhere he went, and through this work began
to see the positive effects that the gem trade
could have on developing nations. In 2001, he
joined the Lev Leviev Group, a leading Israeli
diamond manufacturer. Through his work he
sought to develop B