National Bank of Fujairah to finance diamond manufacturers and traders

The Bank has set up a specialised team to focus on the same
National Bank of Fujairah to finance diamond manufacturers and traders

National Bank of Fujairah PJSC (NBF) is entering the diamond financing sector, thus supporting Dubai’s efforts to grow into a leading global diamond hub.

The Bank has set up a specialised team to focus on financing manufacturers and traders of rough and polished diamonds. The bank has brought on board industry experts from Antwerp Diamond Bank's (ADB) operations in Dubai to run the business, which will primarily involve providing short-term purchase and sales financing to established diamond players as they ship raw diamonds from producing nations in the African and European continents to manufacturers in India and the Far East.

This team is part of the Bank’s precious metals unit and has recently registered a new office at Almas Tower in Dubai. It is expected to commence operations there in the summer.

According to the Dubai Diamond Exchange, the emirate's diamond trade is valued at nearly $35 billion in 2013 and 2014, up from less than $5 million in 2001. NBF's new office at Almas Tower is registered with DMCC, and the bank is also a sponsor of DMCC's upcoming Dubai Diamond Conference on the 21st and 22nd of April. Ahmed bin Sulayem, Executive Chairman of DMCC, said, “One of the factors crucial to Dubai's ongoing success as a global diamond centre is financial support. With the gradual withdrawal of multinational banks from the diamond market, it is heartening to see strong local names like National Bank of Fujairah stepping in to take their place."

NBF's diamond financing team will complement the bank's focus on the precious metals and jewellery sectors - it is widely-regarded as one of the biggest local bullion banks in terms of service coverage and provides an array of structured derivatives in commodities and base and precious metals.

Vikram Pradhan, NBF's Head of Corporate & Institutional Banking, said that the launch of the bank's diamond financing business coincides with the rise of Dubai as one of the diamond capitals of the world. He noted that, “Our competitive advantage lies in the bank's track record for operational excellence and compliance, its strong client relationships in the jewellery and gold sectors and now the in-house expertise from ADB, all of which would help NBF play a definitive role in the development of the diamond trade in the UAE."


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