Iran Strikes Halt Dubai Diamond Trade, Surat Industry in Crisis

Surat | Gujarat — The escalating war between Iran, Israel and the United States has delivered a crushing blow to India’s multi-billion-dollar gems and jewellery sector, bringing exports to a near standstill as missile strikes and airspace closures paralyse trade routes across the Middle East.

Dubai — the lifeline of the global diamond trade — has been thrown into turmoil. Industry insiders say several Indian diamond company owners operating from the Dubai Multi Commodities Centre (DMCC) at Jumeirah Lake Towers are stranded, sheltering indoors amid security fears. A few managed to return to India via Oman-Kochi routes on Sunday, but most remain stuck as airports across the UAE suspend passenger and cargo flights.

Exports of polished diamonds and jewellery have been completely halted due to the shutdown of air cargo services. Even the import of rough diamonds routed through Dubai from Africa and Europe has stopped abruptly.

Mehul Shah, vice-president of the Bharat Diamond Bourse (BDB), confirmed the severity of the disruption. “Exports have been fully suspended. Airports in Dubai and across the Middle East are non-operational due to missile strikes. Debris has reportedly fallen near airport zones, and flights are suspended until further orders,” he said. “We are in constant touch with our traders in the UAE. Most are safe inside their homes; some are taking shelter in bunkers. But the situation is extremely worrisome.”

Home to over 1,300 gem enterprises and affiliated with the World Federation of Diamond Bourses, the Dubai Diamond Exchange under DMCC is among the world’s most critical diamond trading hubs. According to DMCC Executive Chairman Ahmed Bin Sulayem, more than 1.06 billion carats of rough and polished diamonds were traded through Dubai in the last five years, including nearly 179 million carats in 2024 alone — a scale now brought to a grinding halt.

The aftershocks are being felt sharply in Surat, India’s diamond polishing capital. Southern Gujarat Chamber of Commerce and Industry (SGCCI) President Nikhil Madrasi warned that the industry was already under strain before the conflict. “Israel is a major diamond trading hub. Instability there disrupts the supply of rough stones to Surat. With the US involved, luxury demand could weaken further,” he said. Rising freight and insurance costs via the Red Sea, coupled with sanctions on Russian rough diamonds, have pushed production costs higher. “If this continues, employment in diamond units will be hit,” Madrasi cautioned.

SGCCI Vice-President Ashok Jirawala added that the textile sector, heavily dependent on petroleum-based raw materials, is also at risk. “Crude oil prices may surge, increasing yarn and MMF costs by 15–20% in the short term. Shipment delays and payment security concerns are mounting,” he said.