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Pearl Trade Sees Potential Growth

DUBAI - Major players in the global pearl trade remain bullish about the sector’s growth potential despite cooling demand for luxury products due to the global economic recession.

“Nobody benefited from the crisis, but there are a lot of untapped immature markets that are showing interests in the pearl trade,” said Sultan Ahmed bin Sulayem, Executive Chairman of the Dubai Multi Commodities Centre (DMCC) and Chairman of Dubai World, citing the likes of emerging markets like Brazil, Russia, China, India and the Middle East.

Bin Sulayem who spoke on Tuesday at the first World Pearl Forum organised by the DMCC and its unit, Dubai Pearl Exchange, cited a recent study by Bain and Company which showed that high net worth individuals in these emerging markets are likely to increase spending on luxury products in the next five years.

“Right now, demand is bit low, but there is high potential for trade growth especially when there is already recovery,” said Bin Sulayem.

He said the forum, not only aims to position Dubai as the pearl trading capital of the world, but also to strengthen the global pearl industry and reinvent the commodity as a distinct luxury product.

“At present, there is a need to create new avenues of development in trade. Today’s reality calls for industry cooperation more than ever before — to build on our strengths and address the weaknesses, create visibility and opportunity for the commodity,” said Bin Sulayem.

“The upside here is that with buyers becoming more cautious, the producers focusing on higher quality or high end pearls production are still very much in the game,” he said, adding the industry is still growing as awareness is increasing.

DMCC executive director Gaiti Rabbani said major industry players need to get their act together to accelerate growth in trade.

“The pearl business in the region and in the world has yet to reach its full potential. We have seen the growing interest but the industry is still fragmented and naturally divided into specific regions where pearls are produced alongside key industry trading centres such as Japan and Hong Kong.”

She said that in the absence of a global industry body that sets standards for the industry, the Dubai Pearl Exchange can provide buyers and producers the platform for promoting and enhancing trade of the commodity.

“The global pearl industry is now just a small fraction of the luxury business but if the players could set up a structure that will allow them to consolidate their strengths, pearls can be marketed as a distinct luxury product that can rival the popularity of other gems like diamonds,” said Rabbani at the conference sidelines.

· rocel@khaleejtimes.com