Israel�s polished exports for the year ended December 31, 2005, reached $6.7 billion, an increase of 5.8% on 2004, according to Israel�s Ministry of Industry and Trade. The U.S. was the major export market destination, comprising 61% of Israel�s total polished exports. Hong Kong and Belgium followed with 14% and 8% respectively. Polished diamond imports increased 9.3 % to $3.8 billion. Rough imports increased 3.2% to $5.3 billion, while rough exports surged 20.5% to $3.5 billion.

Diamond controller Shmuel Mordechai noted that 2005 was a record year in every aspect of Israel�s diamond trade. �During the year, the seeds were planted for Israel to significantly increase its rough supply directly from Russia,� Mordechai added. Interim Prime Minister and Minister of Industry and Trade, Ehud Olmert, said that the figures are encouraging despite the difficulty of obtaining rough diamonds directly from producing countries in 2005.

Moti Ganz, president of IsDMA said that Israel�s biggest challenge to date is that diamond producing countries such as South Africa, Angola and Botswana are looking to manufacture diamonds locally. Looking ahead to 2006, Israel Diamond Institute (IDI) chairman, Simcha Lustig, said that Israel will continue to look for alternative sources of rough diamonds. He said that companies such as Dan Gertler, Benjamin Steimetz group, and Lazare Kaplan International have contributed to Israels rough supply.

The IDI is developing the Israel brand which will be coined on all certificates emanating from Israel�s new gemological laboratory. �We hope to launch the new brand in BaselWorld in April, or latest by the World Diamond Congress in July,� Lustig said.