Crisis in Israel's Diamond Industry – Half-Year Results

Israel's diamond industry continues to grapple with a crisis: in January–June 2026, net exports of polished diamonds fell by 22.3% to $625.7 million, while imports dropped by 12.7% to $531.3 million. In the rough segment, the decline is even steeper: exports fell by 34.6% and imports by 35.8%. Causes include falling demand for natural stones, competition from synthetics, geopolitical instability, logistical problems, and uncertainty over US tariffs.

Israel's diamond industry is experiencing a serious crisis, as shown by data from the Ministry of Economy and Trade for the first half of 2026. Net exports of polished diamonds fell by 22.3%, from $804.5 million to $625.7 million, while imports dropped by 12.7%, from $609 million to $531.3 million. In the rough diamond segment, the decline is even more significant: exports fell by 34.6% (from $292.6 million to $191.2 million), and imports by 35.8% (from $324.6 million to $208.3 million). The main factors behind the crisis include a sustained drop in global demand for natural diamonds, competition from synthetic alternatives, economic and geopolitical instability in importing countries, logistical problems due to flight cancellations and reductions, and uncertainty over changes in tariffs and trade rules in the US. The main market for polished stones remains the US, followed by Hong Kong and Belgium. The main suppliers of polished stones are India, Hong Kong, and the US. Rough exports go mainly to India, Belgium, and the UAE, while imports come from the UAE, Belgium, and Botswana. Despite the worsening indicators, Israeli companies continue to hold their positions in global markets, adapting to new realities.