A rare 603 carat white diamond, the Lesotho Promise, unearthed in 2006, produced 26 separate cut stones, with a total value of $20 million. Francois Lenoir / Reuters
A rare 603 carat white diamond, the Lesotho Promise, unearthed in 2006, produced 26 separate cut stones, with a total value of $20 million. Francois Lenoir / Reuters

Emirati investors find gem in Lesotho diamond industry



CAPE TOWN // Diamonds it turns out, are not forever — at least not when it comes to supply.

Declining deposits present a looming shortage but also an opportunity for investors.

Although the wealthy have traditionally collected precious stones, diamonds have not been part of a formal portfolio of value, such as gold, cash and equities. However this may change as natural stones become harder to find, something on which a UK company with Emirati backing is hoping to capitalise.

AIM-listed Paragon Diamonds is developing the sizeable Lemphane Mine and has recently agreed to acquire another sizeable mine, the Mothae Mine, both in the tiny mountain kingdom of Lesotho, in southern Africa. In January, Paragon announced it had teamed up with International Triangle General Trading, a Dubai-based firm, for a debt and equity package of up to US$28 million.

“These investors are connected to the royal families of the UAE and Saudi Arabia,” says Hugo Philion, a member of the management team at Paragon, although he declines to name them. “Through them, we will be talking to some very interesting people who are interested in acquiring our sizeable supply of large investment grade diamonds direct from the mine, and intent on making Dubai the number one Diamond centre in the world.”

Strong demand and a decline in world production will kindle interest in gems as a long-term asset that grows in value over time.

“We see a shift into diamonds both as an asset class and a store of value as a currency surrogate, especially for the ultra-wealthy, as both geopolitics and the global monetary system becomes more unstable with persistent quantitative easing,” Mr Philion says.

Most of the world’s diamonds were formed deep in the earth millions of years ago — up to 300 kilometres down, in some instances. They are usually brought to the surface by volcanic activity — in pipes of larva. These pipes harden and become the diamond-bearing kimberlites that miners seek.

However, the pipes are exceedingly rare. “There’s been no major kimberlite discovery in 25 years,” says Mr Philion.

According to the financial management firm Bain & Co, natural diamond production is set to decline from 2019 as existing mining assets begin to deplete.

“Demand, however, is projected to maintain a robust growth rate, thanks to strong fundamentals such as expanding wealth and a growing middle class in developed and developing countries alike,” reads the Bain & Co’s report, prepared for the Antwerp World Diamond Centre last year.

A growing middle class in Latin America, Africa, and Russia and Asian countries, where consumers show increased interest in diamond engagement and wedding jewellery, will add to demand for gems, Bain says.

Artificial diamonds can be manufactured, and some are extremely good. However, with the right equipment, fakes can easily be identified and just as with high-quality copies of a treasured artwork, to collectors and investors they are worthless.

Even when talking solely of real gem stones, there are diamonds and there are diamonds. It is only the best-quality sparklers that will make the investment grade — and therefore they are the most expensive, says Paul Zimnisky, a New York-based independent diamond analyst and consultant.

“On a real basis adjusted for inflation, the performance of most diamonds has really not been that impressive compared to other asset classes,” Mr Zimnisky notes. “Only the highest quality, rarest, most desired diamonds have outperformed: the blues; the pinks; the reds; and larger flawless whites.

“With the price point of these diamonds starting in the high-tens and hundreds-of-thousands of dollars, the investor base is limited.”

Currently all it takes is a mouse-click for a retail investor to access gold through an exchange traded fund. Diamonds, though, are more difficult to acquire as currently there are no similar investment instruments for them. Instead, purchases of physical stones must be made from dealers or specialised retailers.

This is where the Emirati-backed Lesotho project aims to benefit. “Paragon will publicise their production in Dubai to investors wishing to acquire diamonds at prices more related to the cost of production and thus more transparent than in places like Antwerp, 49th St New York and Hatton Garden in London,” says Mr Philion.

There’s also a growing market for diamond bullions — sealed cards that contain investment grade stones. These can be bought for as little as US$100 — but others will go for hundreds of thousands of dollars, depending on total carat starting at 0.5 and upwards, and quality, says the online dealer wholesalecoinsdirect.com.

“The diamonds are sealed inside a NDX Diamond Certicard, which protects the stones and guarantees their authenticity and all-important 4 C’s [colour, cut, clarity, carat],” it says on its website.

“It’s the easiest way to get in the diamond business. Total carat weight [TCW] is rounded to the nearest digit and the exact number of stones in each card may be slightly more or less than indicated, based on the precise weight of each stone.

“TCW listed on each card is honoured when selling back.”

However, until diamonds can be bought with the ease of other investment commodities, they are unlikely to become part of the average portfolio. There is talk that the Singapore Diamond Investment Exchange is considering launching a regulated electronic exchange but until it does, it will be left to the ultra-rich to pursue high-value gems themselves.

“For the foreseeable future, I see the appeal of diamonds as an investment limited to high-net-worth individuals, those looking to store value, using diamonds as an additional portfolio diversification tool, with the added benefit being the very high value-to-weight ratio diamonds provide,” Mr Zimnisky adds.

Still, the mere fact that interest has been sparked in investment-grade stones is good news for emerging gem markets such as Dubai.

The emirate has indicated it wants to take on Antwerp as a diamond market, pushing to be the hub of choice for Middle East and Asian buyers. Singapore is another contender for regional diamond dealing.

As things stand now, Dubai has an edge over rivals. It has money and is home to many high-net-worth individuals. Antwerp is making heavy weather of competing at the moment, as credit to the industry has dried up following years of volatility in the diamond market.

The UAE’s Emirates NBD, Mashreqbank, and National Bank of Fujairah stepped in last year to begin financing diamond cutters, polishers and traders operating on the Dubai Diamond Exchange, according to Bloomberg. They began the funding after the Antwerp Diamond Bank, the go-to funder for almost a century, closed its global operations last year. In 2014 Dubai traded $25 billion in diamonds, up from a negligible $5 million in 2001, according Dubai Diamond Exchange figures.

With care Dubai can assume the role that the Belgian city has played in the industry, while at the same time developing a new asset class for ultra-wealthy investors. What remains is to avoid obvious missteps, such as allowing conflict diamonds — those illegally mined, or sold to finance violence — to slip in, although there are no major conflicts occurring in big diamond areas in Africa at the moment.

“Having strict guidelines in place to only allow the trade and manufacturing of ethically sourced stones is imperative for the region to succeed longer term,” Mr Zimnisky concludes.

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AGL AWARDS

Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Gully Boy

Director: Zoya Akhtar
Producer: Excel Entertainment & Tiger Baby
Cast: Ranveer Singh, Alia Bhatt, Kalki Koechlin, Siddhant Chaturvedi​​​​​​​
Rating: 4/5 stars

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
WORLD RECORD FEES FOR GOALKEEPERS

1) Kepa Arrizabalaga, Athletic Bilbao to Chelsea (£72m)

2) Alisson, Roma to Liverpool (£67m)

3) Ederson, Benfica to Manchester City (£35m)

4) Gianluigi Buffon, Parma to Juventus (£33m)

5) Angelo Peruzzi, Inter Milan to Lazio (£15.7m

Fireball

Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.

A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.

"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.

Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.

SPECS

Toyota land Cruiser 2020 5.7L VXR

Engine: 5.7-litre V8

Transmission: eight-speed automatic

Power: 362hp

Torque: 530Nm

Price: Dh329,000 (base model 4.0L EXR Dh215,900)

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EDate%20started%3A%3C%2Fstrong%3E%202020%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Khaldoon%20Bushnaq%20and%20Tariq%20Seksek%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Global%20Market%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20HealthTech%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%20100%3Cbr%3E%3Cstrong%3EFunding%20to%20date%3A%3C%2Fstrong%3E%20%2415%20million%3C%2Fp%3E%0A
How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Match info

Deccan Gladiators 87-8

Asif Khan 25, Dwayne Bravo 2-16

Maratha Arabians 89-2

Chadwick Walton 51 not out

Arabians won the final by eight wickets

Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
The%20new%20Turing%20Test
%3Cp%3EThe%20Coffee%20Test%3C%2Fp%3E%0A%3Cp%3E%3Cem%3EA%20machine%20is%20required%20to%20enter%20an%20average%20American%20home%20and%20figure%20out%20how%20to%20make%20coffee%3A%20find%20the%20coffee%20machine%2C%20find%20the%20coffee%2C%20add%20water%2C%20find%20a%20mug%20and%20brew%20the%20coffee%20by%20pushing%20the%20proper%20buttons.%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3EProposed%20by%20Steve%20Wozniak%2C%20Apple%20co-founder%3C%2Fp%3E%0A
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
%3Cp%3E%E2%80%A2%20Looming%20global%20slowdown%20and%20recession%20in%20key%20economies%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Russia-Ukraine%20war%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Interest%20rate%20hikes%20and%20the%20rising%20cost%20of%20debt%20servicing%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Oil%20price%20volatility%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Persisting%20inflationary%20pressures%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Exchange%20rate%20fluctuations%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shortage%20of%20labour%2Fskills%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20A%20resurgence%20of%20Covid%3F%3C%2Fp%3E%0A
If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

if you go

The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow. 
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes). 

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Company profile

Company name: Dharma

Date started: 2018

Founders: Charaf El Mansouri, Nisma Benani, Leah Howe

Based: Abu Dhabi

Sector: TravelTech

Funding stage: Pre-series A 

Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

In the Restaurant: Society in Four Courses
Christoph Ribbat
Translated by Jamie Searle Romanelli
Pushkin Press 

How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
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