National Bank of Fujairah underscores focus on precious metals and jewellery sectors with launch of diamond financing business

National Bank of Fujairah PJSC (NBF) today announced the establishment of a specialised team focused on financing manufacturers and traders of rough and polished diamonds. Part of NBF’s precious metals unit, the diamond financing team has recently registered a new office at Almas Tower, long the centre of Dubai’s diamond trade and located in the Jumeirah Lakes Towers development,  and is expected to commence operations there in the summer.  

NBF’s diamond financing team will complement the bank’s focus on the precious metals and jewellery sectors – it is widely-regarded as one of the biggest local bullion banks in terms of service coverage and provides an array of structured derivatives in commodities and base and precious metals. 

The bank has brought on board industry experts from Antwerp Diamond Bank’s (ADB) operations in Dubai to run the business, which will primarily involve providing short-term purchase and sales financing to established diamond players as they ship raw diamonds from producing nations in the African and European continents to manufacturers in India and the Far East. 

Vikram Pradhan, NBF’s Head of Corporate & Institutional Banking, said that the launch of the bank’s diamond financing business coincides with the rise of Dubai as one of the diamond capitals of the world: “With Dubai’s strategic location on global trade routes, its open business climate and modern infrastructure, it’s no wonder that the city has quickly taken its rightful place as one of the leading diamond centres in the world. 

“As a local bank with competencies in corporate banking, trade finance as well as precious metals, introducing a dedicated diamond financing service was simply a logical extension of our business mix and commitment to the local economy. Our competitive advantage lies in the bank’s track record for operational excellence and compliance, its strong client relationships in the jewellery and gold sectors and now the in-house expertise from ADB, all of which would help NBF play a definitive role in the development of the diamond trade in the UAE.”   

According to the Dubai Diamond Exchange, a regional trading platform overseen by the Dubai Multi Commodities Centre (DMCC), the emirate’s diamond trade is valued at nearly $35 billion in 2013 and 2014, up from less than $5 million in 2001. NBF’s new office at Almas Tower is registered with DMCC, and the bank is also a sponsor of   DMCC’s upcoming Dubai Diamond Conference on the 21^st and 22^nd of April. 

Ahmed bin Sulayem, Executive Chairman of DMCC, said: “Over the past decade, Dubai has effectively leveraged its location on the ‘New Silk Route’ at the heart of the global diamond trade. 

“One of the factors crucial to Dubai’s ongoing success as a global diamond centre is financial support. With the gradual withdrawal of multinational banks from the diamond market, it is heartening to see strong local names like National Bank of Fujairah stepping in to take their place.”