Once the world’s leading diamond hub, Antwerp's diamond industry is experiencing an unprecedented downturn, according to VRT NWS. The Antwerp World Diamond Centre (AWDC) reports a
25% drop in trade in 2023, bringing total revenues down to €23.7 billion. This follows a 20% decline in 2022, signaling a deepening crisis for the sector.
The downturn is driven by multiple factors, including weakening global demand, the rise of synthetic diamonds, and the European Union’s ban on Russian diamonds, which previously accounted for 35% of Antwerp’s imports. While the industry supports the sanctions, AWDC CEO Karen Rentmeesters emphasizes the need for other G7 nations to adopt equally rigorous measures to level the playing field.
Rising competition from global hubs
Dubai has surpassed Antwerp as the top global diamond trading hub, benefiting from fewer restrictions. Other markets, such as India and several African nations, are also gaining ground, further eroding Antwerp’s influence in the global diamond trade.
Bureaucratic challenges threaten recovery
Industry leaders highlight bureaucratic barriers, such as limited access to banking services, visa delays, and inconsistent customs procedures, as significant obstacles to Antwerp’s recovery. Bart De Hantsetters, CEO of Diamcad and a leading authority on diamond cutting, stresses the urgency of policy reforms to safeguard Antwerp's position in the industry.
The future of Antwerp’s diamond trade
As the gateway for all diamonds entering and leaving Europe, Antwerp remains home to 1,400 diamond companies and provides employment to approximately 3,500 people. However, mounting concerns about its future as a global diamond hub have prompted calls for the Belgian government to reduce regulatory burdens and offer stronger support to the struggling sector.
Without decisive action, Antwerp risks losing its once-unrivaled status in the diamond trade. Photo by Kristina D.C. Hoeppner, Wikimedia commons.