Escalating tensions in West Asia have disrupted the movement of diamonds and jewellery between India and Dubai, halting shipments across one of the global trade’s most important supply corridors.

Industry sources say widespread flight cancellations and airspace restrictions across the region have interrupted the transport of rough and polished diamonds, affecting exporters and manufacturers that rely on Dubai as a key trading hub. Dubai plays a central role in the global diamond supply chain, facilitating trade between producing regions in Africa and cutting centres in India.

India processes nearly 90% of the world’s diamonds and depends heavily on rough imports routed through the United Arab Emirates, which accounts for more than two-thirds of the country’s rough diamond supplies. At the same time, India exports the majority of polished diamonds back to the UAE for trading and distribution to international markets.

The disruption has effectively stalled shipments between the two markets, creating delays in both raw material supplies and finished diamond exports. Industry executives report that cargo movements through the Dubai corridor have slowed significantly as airlines suspend routes and logistics providers face operational constraints.

The Middle East is also a major destination for India’s gems and jewellery exports, accounting for a substantial share of the country’s annual trade in the sector. Prolonged disruptions could therefore impact export volumes and supply chains across the global diamond industry.

Market participants are closely monitoring the geopolitical situation, as continued instability in the region could further affect trade flows, logistics costs, and diamond availability in key international markets.