From Legal Prospective, what controls the Diamond and Gemstone Trading in the UAE?
There is a UAE Federal Law No. 13 of 2014 Controlling Importation, Exportation and Crossing of Raw Diamonds.
Besides, the UAE have enacted Union Law No. 13 Regarding Supervision of Import/Export and Transit of Rough Diamonds which implements the Kimberly Process Certification Scheme (“KPCS”) which regulates the trade of “conflict diamonds”.
When trading diamonds and gemstones it is very important to comply with the rules and regulations not only on the national, but on the international scale. It is necessary to make sure that the diamonds you trade or in which you invest your funds are not “conflict diamonds” and are ethically sourced, according to the Kimberly Process Certification Scheme, Union Law No 13 and other laws and regulations.
The UAE is the first Arab country to adhere to the KPCS and the DMCC is the only entry and exit point for rough diamonds in the UAE, thereby helping to ensure that the KPCS is adhered to in the UAE diamond trade. Therefore, the strong regulatory framework and solid infrastructure of the DMCC free
zone and the DDE platform has allowed Dubai to become one of the leading diamond trading hubs in the world.
Despite the growing popularity of the gemstone investment market there are not many legal professionals in this field, capable to provide efficient and competent legal support on the gem trade matters. Entering the market without thorough research of its conditions and rules is also quite complicated. Regardless of whether you are a local investor or invest in the UAE from abroad, consulting a legal specialist is a must. – and that relates not only to gemstone market, but any investment market.
No matter your time horizon or your willingness to bear risk, unless you’re dealing under the guidance of a reputable professional who really understands the sensitivity of this kind of Market, gemstone investing is as close to gambling as you can come without setting foot in a casino, that’s where Sazonov Legal Consultancy come to protect your interest in this very rare specialty field.
If you are a series investor and considering investing some of your risk capital in gemstones, be prepared to spend some money on professional assistance, and remember, as always, that high potential returns always come with significant risk.