Tension in West Asia casts shadow on Surat diamond trade

Surat: Diamond traders with operations in Dubai expressed concern after missile attacks on Gulf trade hub Dubai on Saturday following the major strike on Iran launched by Israel and the United States, raising fears of disruption to business and trade.

Traders in Surat said the immediate fallout was the suspension of flight operations, a move expected to slow or temporarily halt the movement of people and consignments linked to the diamond sector.


Industry sources in Surat said trading activity connected to Dubai was likely to come to a standstill for the time being, as the city functions as a key transit and trading point for diamonds moving between India and international markets. With air movement stopped, traders anticipate delays in meetings, shipments and payments that depend on quick logistics.

Over 70% of rough and polished diamonds are routed through Dubai to various destinations. According to traders, around 250 diamond merchants from India maintain offices in the emirate. Nearly 1,500 Gujarati workers from Mumbai, Surat and other parts of the state are employed in diamond firms there, making the situation a matter of concern for families and businesses back home.

Residents in Dubai said missiles fired at the city were intercepted and destroyed mid-air. In a statement shared by the Emirates News Agency, the UAE Ministry of Defence said the country was subjected to a "blatant attack" involving Iranian ballistic missiles. It added that air defence systems intercepted a number of missiles with high efficiency.

Diamond merchants from Mumbai and Surat, who frequently travel through Dubai for buying, selling and coordinating with overseas clients, have reportedly cancelled or postponed planned visits. The uncertainty has also heightened anxiety among those with offices, inventory and other assets in the region.

"I cancelled my plans to visit Dubai after the air strike. The attack will impact diamond trade severely if the situation does not improve quickly," said Shivam Navadiya, a Surat-based diamond trader.

Traders headquartered in Dubai but operating globally said there was no large-scale damage to property. "Routine life is as usual. However, the airport has been closed, and it will impact global trade," said Bharat Patel, a diamond trader based in Dubai.

The disruption has also affected regional connectivity. Flight services from Surat to Dubai and Sharjah were discontinued amid the developing situation, further limiting travel options for traders and workers who rely on the corridor. Many from the Diamond City plan their international connections through Dubai due to its global connectivity and streamlined transit facilities.

Traders said they are closely monitoring developments and assessing the impact on ongoing transactions as uncertainty looms over one of the world's key diamond trading hubs.Get the latest lifestyle updates on Times of India, along with Holi wishes, messages and quotes !