Lab-grown diamonds ‘clear consumer choice’ as natural sector struggles, Bin Sulayem says

Ahmed Bin Sulayem, executive chairman and chief executive officer of the Dubai Multi Commodities Centre (DMCC), has described lab-grown diamonds as a distinct commercial category and a clear preference among buyers, while the natural diamond industry contends with falling demand and shrinking supply.

Speaking at the Dubai Diamond Conference on Monday, Bin Sulayem noted that lab-grown diamonds made up 61 per cent of all diamond purchases by unit in the United States in 2025, a sharp increase from just 2 per cent in 2017.

Two distinct markets

“Lab-grown diamonds are a clear consumer choice, and a distinct commercial category. Natural diamonds are finite, geologically rare, and tied to deep socio-economic development. Both sectors deserve objective, fact-based market analysis,” Bin Sulayem said.

The conference, hosted by the DMCC, centred on strategies to revive demand for natural diamond jewellery and generate fresh value for the industry.

Bin Sulayem said the sector must emphasise the rarity, heritage and provenance of natural diamonds, particularly as younger consumers increasingly opt for alternatives. For buyers who do not value a diamond’s age or scarcity, lab-grown options offer an attractive substitute, he added.

Production pressures mount

The natural diamond industry is also contending with falling output as major mines close or reduce operations, Bin Sulayem said. He urged producing countries to concentrate on capturing higher value per carat, verifying the origin of their diamonds, and strengthening the economic resilience of mining communities.

“Verifiable origin ensures that diamonds from specific points of origin command the premium prices they deserve in the open market,” he said.

Bin Sulayem pointed to Namibia as a case in point, saying the country’s diamond deposits and partnerships with local communities had enabled it to achieve higher prices on global trading platforms.

He also called for wider adoption of technology to cut extraction costs and protect profit margins amid weaker demand.

For producing nations, many in Africa, diamonds remain a vital source of government revenue, foreign currency and employment. A downturn in the trade can therefore have immediate economic repercussions, he warned.

Dubai’s record diamond trade

Dubai posted a record $41.7 billion in diamond trade in 2025, with natural diamonds representing 95.8 per cent of that total, according to figures Bin Sulayem cited.

The emirate has also grown its polished diamond trade, with the total value rising 246 per cent since 2020.

The DMCC now hosts nearly 1,400 diamond and precious stone companies, and the Dubai Diamond Exchange held more than 100 tenders and auctions in 2025, Bin Sulayem said.

Wholesale prices for lab-grown diamonds have dropped 93 per cent since 2020, averaging roughly $100 per carat, according to De Beers’ June 2026 Diamond Report. The fall reflects rising supply and intensifying competition, making lab-grown stones more affordable for consumers and adding further strain on the natural diamond sector.