Israel Diamond Exchange

The Israel Diamond Exchange (IDE, also known as the Israeli Diamond Bourse) is one of the world's largest diamond trading centers, a complex of four interconnected towers in Ramat Gan that functions as the physical and commercial hub of Israel's diamond industry. The industry it anchors is now in the deepest crisis of its history: Israeli diamond exports fell to a record-low $2.4 billion in the first half of 2026, roughly a third of their 2015 peak, and IDE president Nissim Zuaretz resigned early from his post amid the collapse.

History

Israel's diamond industry began in the 1930s and 1940s when Jewish diamond cutters and polishers, many fleeing Antwerp and Amsterdam, established workshops in Palestine. After independence, the government designated diamonds as a strategic export sector. The Israel Diamond Exchange was founded in 1937 as the Palestine Diamond Club and moved to its current Ramat Gan campus between the 1960s and 1980s. At its peak in the 1980s and 1990s, Israel was the world's leading center for diamond cutting, polishing and trading by value.

How Severe Is the Current Crisis?

Cumulative Israeli diamond exports from January through June 2026 totaled just $2.4 billion, the lowest figure in the industry's history, according to Israel's Diamond Controller's Office. Polished diamond exports alone reached roughly $7 billion in 2015, the sector's peak year, more than three times the current volume, while total industry trade, combining rough imports and polished exports, fell to about $4 billion, down from roughly $12 billion in the industry's strongest years. "The industry's condition is unprecedented," Diamond Controller Natalie Gutman said. "Today, the volume of diamond trade is only one-third of what it was a decade ago." Veteran traders told Ynetnews that roughly half of the exchange's members have already left to find other work, describing the trading floor as "pure depression" with many offices now closed.

What Is Driving the Collapse?

Israeli diamond industry leaders point to four compounding pressures: a new US tariff on Israeli diamond imports, reported at rates between 10% and 15% across 2025-2026 coverage, while European Union-origin diamonds, including those from Belgium, were zero-rated by the United States, giving Antwerp a direct cost advantage; the rapid growth of lab-grown diamonds, whose prices have fallen more than 96% and now compete directly with natural stones on price; intensifying competition from Dubai's lower-tax trading environment; and broader weak global demand reflected in De Beers itself being put up for sale for the first time in its history. The industry also continues to absorb the effects of Israel's wars since October 2023, which disrupted buyer travel and forced cancellation of major trade events.

Who Leads the Exchange Now?

Nissim Zuaretz, founder and CEO of large-stone specialist DN Diamonds, was elected the IDE's 11th president in May 2024 for a three-year term but announced his early resignation in mid-2026, with elections for a successor scheduled for November or December 2026; he will remain in the role until a new leader is chosen. Zuaretz has publicly blamed the Israeli government for the crisis, saying Israel "suffered a defeat against the American administration" on tariffs while competitors secured tariff-free US access. The IDE rejoined the World Federation of Diamond Bourses in mid-2026 after a one-year absence.

Structure

The IDE complex has historically housed approximately 3,000 member firms and individuals, diamond dealers, cutters, brokers and service providers, including trading halls, offices, gemological laboratories with a GIA presence, secure vaults, customs offices and banking services. The exchange operates its own arbitration court for trade disputes, a self-governing judicial mechanism standard across global diamond bourses that enables high-speed, low-friction commerce in a trust-dependent industry, though membership has declined sharply amid the current downturn.

Strategic Significance

The diamond industry represents the non-tech, non-defense pillar of Israel's export economy, a trade-based sector built on human capital, gemological expertise and commercial networks rather than R&D or intellectual property, and one that industry veterans say employs roughly 6,000 workers whose livelihoods are now directly threatened by the sector's decline. The IDE's Ramat Gan campus remains a hub for adjacent luxury trades and has attracted real estate development, fintech and trading firms to the surrounding district, even as the diamond trade itself contracts.