Diamond Finance Consulting

Peter Meeus

DF Interviews Peter Meeus, Executive Director of Diamonds at the Dubai Diamond Exchange.  Previously, Mr Meeus was the chief executive of Antwerp’s High Diamond Council (HRD)

 DF After being identified with Antwerp and the HRD for so many years, how did you feel about working for a competing diamond centre?

Peter On a personal note, it is common knowledge that I resigned after 4 years (since 2001) trying to expand the HRD Lab internationally.

This expansion was not only an opportunity not to miss but also a real budgetary need in view of the lower Diamond Office income from the abolition of controls within the EU.

What started as an ambitious project became an extremely unpleasant battle which I finally lost in February 2005 when all expansion (NY and Mumbai Lab)  plans were buried were in the execution phase.

If you cannot execute your plans, meet your objectives and fail in your ambition, you have to go and that's what I did. I am now happier than ever before in my professional life. At IDL and in Dubai we literally build something from scratch which of course is much more difficult and which will take time to reach fruition, but it is the kind of challenge I enjoy.

I am fortunate to have a Board which governs and doesn't manage. We work without interference, political compromises, balancing acts between interests, bureaucratic procedures and in the end even court cases between the members. I am simply not a Don Quixote, which I would have become if I had stayed.

The HRD has taken the right steps after my departure and given its management full authority. I think this was a wise decision. And I hear a lot of good things about the expansion of this management both in AWDC and HRD.

Last but not least, it is clear that the so-called 'Dubai threat' helped Antwerp to receive governmental support, which today is stronger than ever before.

We each have now our own role to play: the AWDC/HRD to protect and service Antwerp's diamond industry and Dubai/IDL to fulfil its ambition to become a player of substance in the ME and India.

DF But you are still competing with the HRD with your IDL certificate?

Peter There is no competition possible between a company just starting up (IDL) and a brand that exists for 30 years (HRD) or between a five years old potential hub for the ME and the Sub-Indian continent in Dubai and the 600 year old World Diamond Centre in Antwerp.

Furthermore the diamond world became more global and 50% of Antwerp’s turnover is done by companies also active in Dubai and Mumbai.

DF Why did you feel there was a need for a new diamond grading certificate?

Peter Like any commercial centre, our existence depends on being able to add value.  Although the Arabic diamond market is relatively small, we perceived a need for diamond certificates in Arabic, while at the same time, diamond manufacturers in India and the Middle East demand a more efficient and accurate service from the laboratories.  We guarantee a 48 hour turnaround of your diamond and with digital certificates, that translates into quicker cashflow.  IDL is the only grading lab to offer consistent colour classification, which will put an end to the certificate shopping that happens today.

DF After all of these years, the Dubai diamond trade still has an unhealthy atmosphere attached to it, when do you think large volume genuine diamond trading will start to happen in Dubai?

Peter We have to take a practical approach to building up Dubai.  When the Diamond Tower will be ready for occupation, it will only be the beginning of the story.  Besides the physical infrastructure, we are building the financial, administrative and logistical frameworks to make our plans for the future crystallise.  When these are all in place, trade can be professionally supervised and undesired business practises can be prevented.

DF How are your rough tenders progressing?

Peter The scale of the rough tenders here is limited, but we expect that to change once the Diamond Tower is occupied.  To date, three DTC sightholders have their sights delivered direct to Dubai, and we hope to develop a local secondary market for rough goods here, which will attract more rough tenders.

DF Some of the African producing countries are also planning diamond exchanges, and they will have the advantage of large quantities of local goods, as well as local beneficiation polishing factories.  Will they displace Dubai?

Peter Geography is still important, Dubai is closer to consumer markets, indeed Dubai is a major centre for jewellery retail.  As a regional air hub, Dubai is only a few hours away from India, Europe and the Far East.  We also have all of the major banks and hotels here to cater to dealers’ various needs.  African exchanges will have a hard job competing.

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Copyright © 2008 Diamond Finance - Last modified: 11/23/08