High-tech applications such as Blockchain, AI, laser micromachining and synthetic DNA could strengthen traceability and transparency initiatives in the global diamond supply chain.

These were among the wide-ranging solutions proposed by the Dubai Multi Commodities Centre (DMCC) in its Future of Trade report, released early this month.

Addressing current industry challenges linked to shifting consumer behaviours, the rise of lab-grown diamonds and recent G7 restrictions on diamond trade, the report, titled “Provenance, Traceability and Technology,” also called for urgent action to maintain integrity and sustainability in the diamond value chain.

With regards to G7 sanctions on Russian diamonds, which involves a blockchain-enabled traceability system to be implemented beginning March 1, 2025, the report urged setting up an expert working group to standardise “Minimum Viable Levels of Traceability and Transparency.” The intention is to avoid further restrictions and ensure a consistent global regulatory approach. 

The industry is anticipating delays, additional costs and regulatory overreach when the sanctions’ traceability system is implemented in March.

DMCC Executive Chairman and CEO Ahmed Bin Sulayem cited the need to collectively embrace technology to support the diamond industry’s rapid evolution. He also pushed for a technology-backed transparency enhancement.

To facilitate tech support across the value chain, a comprehensive register of available tech applications, detailing capabilities, limitations, unique features and areas of technological and economic viability should be created.

The report also called for the development of a new technology-based payment model that ensures efficient and timely payment for miners and credit flexibility for retailers.

The report and the proposals were developed following the May 2024 “Provenance, Traceability and Technology Forum” held on the sidelines of the Kimberley Process Intersessional Meeting in Dubai. Further discussions will happen at the Dubai Diamond Conference scheduled for November 11 this year as part of the Dubai Diamond Week. This also includes the Kimberley Process Plenary to be held from November 12 to 15.