• Anil Bhanderi, 2Dot4's head of cut and polishing ,checks a new lab-grown diamond. All photos: Chris Whiteoak / The National
    Anil Bhanderi, 2Dot4's head of cut and polishing ,checks a new lab-grown diamond. All photos: Chris Whiteoak / The National
  • The cleaning of a diamond seed
    The cleaning of a diamond seed
  • A newly created diamond being inspected
    A newly created diamond being inspected
  • The reactor is opened by Aleksandr Altakhov after 467 hours
    The reactor is opened by Aleksandr Altakhov after 467 hours
  • Ashokbhai Babubhai polishes a new diamond
    Ashokbhai Babubhai polishes a new diamond
  • Diamond seeds being placed in the reactor
    Diamond seeds being placed in the reactor
  • Sebastian Farag checks on the diamonds when they are 76 hours old
    Sebastian Farag checks on the diamonds when they are 76 hours old
  • Diamonds at 76 hours old
    Diamonds at 76 hours old
  • 2Dot4 was founded in Dubai in 2022
    2Dot4 was founded in Dubai in 2022
  • The name, 2Dot4, refers to the way diamonds transmit light
    The name, 2Dot4, refers to the way diamonds transmit light
  • Jinesh Mukeshbhai polishing seeds before they are grown into man-made diamonds
    Jinesh Mukeshbhai polishing seeds before they are grown into man-made diamonds
  • The final product, a four-carat, E-colour, VS1 diamond set in a ring on display at Magnat Fine Jewellery
    The final product, a four-carat, E-colour, VS1 diamond set in a ring on display at Magnat Fine Jewellery
  • An 8.14-carat, E-colour, VS1, round-cut stone set in a ring at Magnat Fine Jewellery
    An 8.14-carat, E-colour, VS1, round-cut stone set in a ring at Magnat Fine Jewellery
  • The lab-grown diamonds are used in high-quality pieces of jewellery, which sell for a more accessible price than items using natural diamonds
    The lab-grown diamonds are used in high-quality pieces of jewellery, which sell for a more accessible price than items using natural diamonds
  • From left, Arnaud Flambeau, executive chairman of 2Dot4, with co-chief executives Roger Kylberg and Mohamed Sabeg
    From left, Arnaud Flambeau, executive chairman of 2Dot4, with co-chief executives Roger Kylberg and Mohamed Sabeg

Weekend

Photo essay: The Dubai company producing sustainable diamonds in a laboratory

Shaping the future of the precious stones, 2Dot4 is creating environmentally friendly luxury products

Rana Afifi
Chris Whiteoak

November 17, 2023

  • English
  • Arabic

2Dot4 is a company producing lab-grown diamonds. Founded in Dubai in 2022, its primary focus is on creating sustainable and environmentally-friendly luxury products.

The name, 2Dot4, refers to the way diamonds transmit light, indicating the company's dedication to producing diamonds with clarity.

The team is made up of 38 people, including five founders, engineers and six employees with PhDs. Speaking to The National, Roger Kylberg, chief executive and managing partner of 2Dot4, says that the team of founders decided to open their company in Dubai because of its geographic location, its capacity for diamond trading and because it is a centre of innovation.

“It's a good place to recruit talent. People are very positive to come to this region. You have the sun and it's close to many different places. We recruit engineers and [process hazard analysis] people from Europe or stone polishers from India,” Kylberg says.

“It's extremely important to be transparent. It's extremely important to be reachable and communicate the generation, especially since we are talking to generations who expect to see everything with 100 per cent transparency.”

The price point, compared with natural diamonds, also plays a vital role in changes within the industry, says Arnaud Flambeau, executive chairman of 2Dot4.

“It's a beautiful product. I started the company because I was in the natural diamond for 30 years [but] you can be bolder, wider when you make designs. For a reasonable price, you get top quality diamonds,” Flambeau tells The National.

“It's a product that is good for the planet, it's sustainable ... our technology can help to keep this beautiful stone around the neck or arms [of customers], and that’s fantastic for me.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: November 18, 2023, 9:48 AM
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