De Beers, the world’s largest diamond producer, is returning to Israel’s diamond exchange after a nine-year absence, bringing one of the world’s largest diamond producers back to a trading hub seeking to restore its competitiveness. The company’s diamonds will be presented to buyers at the Diamond Exchange in Ramat Gan from Tuesday through Thursday, marking a fresh effort to attract international trade.

The return comes as Israel moves to make its diamond industry more attractive to global traders, even as weaker prices and declining export values weigh on the market. A new tax agreement and renewed participation by major industry players are central to efforts to revive a sector that has long played a significant role in the country’s trade.

Israel seeks a trading revival

The Diamond Exchange and Israel Tax Authority recently signed an agreement covering the industry for 2027-28, introducing a fixed tax rate based on turnover. The arrangement is intended to improve Israel’s competitive position against established diamond centers, including Belgium and Dubai, where traders face different tax and import-duty regimes.

According to the industry comparison accompanying the agreement, Belgium’s turnover-based tax rate is three times Israel’s, while precious stones and jewelry enter Israel duty-free, compared with a 5% duty in Dubai. Foreign companies can also register in Israel relatively quickly, an advantage over Dubai, where the process can take more than a year.

The agreement and De Beers’ return follow efforts by the Diamond Exchange’s management, led by President Nissim Zuaretz, to revive the industry. Roey Fisher, head of the Foreign Trade Administration at Israel’s Ministry of Economy and Industry, has also supported the effort as the sector confronts changing consumer demand and competition from laboratory-grown diamonds.

De Beers faces price pressure

The challenges are visible in De Beers’ financial performance. The average price of rough diamonds fell to $105 per carat in the first half of 2026, down 32% from $155 a carat a year earlier. Revenue declined to $1.6 billion from $2 billion, while sales of rough diamonds fell to $1.3 billion from $1.7 billion.

Despite lower prices, consolidated rough diamond sales volumes increased 13% to 12.4 million carats from 11 million carats a year earlier. The figures reflect a market in which producers are balancing inventory, production and demand while seeking buyers for stones that have lost value.

Israel’s diamond trade weakens

Israel’s trade figures underscore the pressure facing the industry. Exports of polished diamonds fell 22.3% to $625.7 million in the first half of 2026 from $804.5 million a year earlier. Imports of polished diamonds declined 12.7% to $531.3 million from $609 million over the same period.

Net exports of rough diamonds dropped 34.6% to $191.2 million from $292.6 million. The figures point to a broad slowdown across the trade, making efforts to attract major suppliers and strengthen Israel’s position among international diamond centers more urgent.

The United States remained Israel’s largest destination for polished diamonds, followed by Hong Kong and Belgium. India, Hong Kong and the U.S. were the leading sources of polished diamond imports. India was also the main destination for Israeli rough diamond exports, while the United Arab Emirates, Belgium and Botswana led supplies of imported rough diamonds.

Ownership deal remains pending

Founded in South Africa in 1888, De Beers operates across diamond exploration, mining, trading, retail and marketing, with activities in 35 countries, including Botswana, Namibia, South Africa and Canada. The company is headquartered in London and is majority-owned by mining group Anglo American, which holds 85%, while Botswana’s government owns the remaining 15%.

De Beers also returned to Angola in 2022 after a decade-long absence, signing two 35-year mineral investment contracts with the government. The agreements established joint ventures with state-owned diamond company Endiama to explore and mine in northeastern Angola, marking the company’s return after leaving the country in 2012.

An international consortium that reportedly includes the governments of Namibia and Angola and prominent diamond merchants was selected to acquire Anglo American’s stake for $1 billion, according to reports published in July 2026. The transaction has yet to be completed, leaving De Beers’ ownership structure unchanged for now as the company navigates a difficult diamond market.