On January 31, about 20 people gathered on the ninth floor
of the Antwerp World Diamond Centre (AWDC) building. The session was an
opportunity for diamantaires to learn how the Antwerp-Waasland Chambers of
Commerce (VOKA) could help them develop their businesses. At first glance, the
event may not have seemed very important, but there was more to it than met the
eye.
Over the last several decades, Antwerp has seen a drop in
its diamantaire population for various reasons — one of which was the rampant
police raids and court cases during the 1990s and early 2000s. But then the
local trade entered a new phase. In the last 10 years, largely thanks to AWDC
CEO Ari Epstein and his teams, the Diamond Mile has been undergoing a healthy
but intensive reform in best practices, compliance and transparency.
Considering the huge amount of effort this process has demanded of
diamantaires, it’s not surprising that some have questioned the benefits of
being the world’s most “kosher” diamond center.
Until recently, when VOKA approached
the sector, signing a cooperation agreement with the AWDC in 2016.
‘Huge changes’
The diamond world had long been perceived as obscure and
secretive, explained Kara Basselier, head of AWDC public affairs, whereas now
it is considered one of Antwerp’s chief industries. Sessions like the one in
January — the first such meeting since the parties’ agreement — “showed we were
successful in achieving that ambition,” she continued. “The alliance formed
with VOKA in 2016 is now bearing fruit, as diamonds are now truly embedded in
the Antwerp economy, receiving the essential support from local stakeholders
and policymakers.”
Pieter Leuridan of VOKA Antwerp confirmed that his
organization had seen “huge changes” in the way diamond companies were being managed,
noting the steps the industry had taken toward becoming fully compliant and
transparent. “We also felt the sector’s desire to integrate into the regular
economy, as opposed to what used to be [in previous] centuries, when [the
industry was more] closed and nobody really knew how things were done among
diamantaires.”
Today, the diamond industry can take its rightful place as
one of the three major economic mainstays of Antwerp and Flanders, together
with the harbor and petrochemical industries, said Leuridan.
What VOKA can do for diamonds
Diamantaires have a lot to gain from VOKA’s experience.
“We
want to develop across Europe. We’re looking to go beyond, expand our market,
and using third parties like them helps a lot in smoothing the contacting process,”
said Dhaval Jain of A.C. Diam. “Their presence here is important to be able to
defend our interests better. They’re the extra level after the AWDC toward
political solutions. Hopefully, they’ll also help solve the issue with banking”
— a reference to the banks’ recent reluctance to offer the industry credit.
Indeed, VOKA has proven helpful in other political
endeavors, such as negotiating with the fiscal authorities about the recent
Carat Tax — legislation requiring the government to tax diamond companies based
on turnover, rather than profit. The organization also offers tools for
diamantaires, such as its “Transitio” workshops on how best to hand businesses
over to the next generation.
The Antwerp trade is finally reaping the rewards of its
rigorous compliance work. Perhaps the acceptance that VOKA’s presence signifies
will enable diamantaires to start regaining some of the rough-market share
they’ve lost to competing locales like Dubai.
Article from the Rapaport Magazine - March 2018. To subscribe click here.