DMCC report urges diamond industry to embrace digital innovation for enhanced traceability 

The report follows the DMCC’s “Provenance, Traceability and Technology Forum,” which took place during the Kimberley Process Intersessional Meeting in Dubai in May 2024 

Dubai, UAE: The Dubai Multi Commodities Centre (DMCC) has released a pivotal report emphasising the urgent need for the diamond industry to embrace digital innovation to enhance traceability and address global challenges. Titled “Provenance, Traceability and Technology,” the report outlines how technology can drive transparency and sustainability within the diamond supply chain. 

As gold prices approach unprecedented levels, the report identifies key tech-based solutions such as blockchain, artificial intelligence, synthetic DNA, laser micro-machining, and QR codes. These innovations are essential for tackling challenges like the rising popularity of lab-grown diamonds and G7 sanctions impacting diamond imports. 

The G7’s sanctions against Russian diamonds, which include a blockchain-enabled traceability system set to take effect in September 2024, have raised concerns within the industry about potential delays, additional costs, and regulatory hurdles. To mitigate these issues and promote a unified global regulatory approach, the DMCC report advocates for the creation of a working group focused on Traceability and Transparency. This group would help establish standards for “Minimum Viable Levels of Traceability and Transparency,” leveraging industry expertise to advance the adoption of effective technologies. 

The report follows the DMCC’s “Provenance, Traceability and Technology Forum,” which took place during the Kimberley Process Intersessional Meeting in Dubai in May 2024. The event brought together key stakeholders in the diamond industry to discuss traceability solutions. 

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, stated, “It is paramount that we collectively embrace technology and its increasingly critical role in the diamond industry’s evolution. By utilizing AI, blockchain, and laser micro-machining, the industry can enhance transparency while supporting artisanal mining communities—key objectives of the Kimberley Process.” 

The report outlines six key recommendations for the industry: establish a task force to develop minimum viable levels of traceability and transparency by March 2025; maintain a comprehensive register of available technologies; embrace a flexible approach to ensure the adaptability of traceability technologies; implement layers for intuitive data visualization and secure data transfer throughout the diamond value chain; develop a technology-based payment model to ensure timely payments for miners and flexible credit for retailers; and foster collaboration among mining companies, manufacturers, retailers, regulatory bodies, and technology partners. 

These findings will be further discussed at the sixth edition of the Dubai Diamond Conference (DDC) on November 11, as part of DMCC’s “Dubai Diamond Week.” The event will also include the Kimberley Process Plenary from November 12-15 and the Jewellery, Gems & Technology (JGT) Dubai trade fair from November 12-14. This year’s DDC theme, “Thriving Under Pressure: Navigating the New Global Paradigms,” encapsulates the challenges and opportunities facing the global diamond market. 

The report is part of DMCC’s ongoing Future of Trade series, which has garnered significant attention, with over 1.9 million downloads and views since the latest edition launched in May 2024. 

Retail Jeweller ME News