Dubai Multi Commodities Centre, better known as DMCC, is making a more deliberate move into the fast-growing lab-grown diamond industry. The Dubai free zone has launched a dedicated Lab-Grown Diamond Vertical, creating a separate ecosystem for synthetic diamonds at a time when UAE trade in the sector has reached record levels.
The numbers explain why DMCC is paying attention. The UAE traded a record 76.9 million carats of lab-grown diamonds in 2025, representing a 91.5% increase compared with the previous year. The total value of that trade reached around $1.3 billion, up 7.5% year on year.
What makes the announcement more interesting is that DMCC is not looking at lab-grown diamonds only through the jewellery market. The free zone is positioning the sector as part of a much broader advanced materials industry, with possible uses across semiconductors, quantum technology, aerospace, medical devices and other high-tech applications.
DMCC Creates a Dedicated Lab-Grown Diamond Vertical
The launch of the new vertical gives lab-grown diamonds their own dedicated business ecosystem within DMCC rather than grouping them under the wider natural diamond market. That distinction reflects how quickly the industry has changed. Natural diamonds continue to depend on mining, scarcity, provenance and traditional distribution channels, while lab-grown diamonds increasingly rely on manufacturing scale, production technology and industrial specifications.
DMCC’s new structure is designed to bring together producers, manufacturers, traders, technology companies, investors, financiers and industrial buyers. By separating the sector from natural diamonds and coloured gemstones, DMCC can create policies, infrastructure and commercial services that are more closely aligned with the needs of companies working specifically with synthetic diamonds.
The move also gives companies entering Dubai’s lab-grown diamond industry a clearer route into the market. Instead of operating inside a broad diamond ecosystem that was historically built around mined stones, businesses now have a dedicated platform focused on their own sector.
UAE Lab-Grown Diamond Trade Reaches 76.9 Million Carats
The growth of lab-grown diamond trading in the UAE has accelerated sharply over the past few years. During 2025, the country handled 76.9 million carats, almost double the previous year’s volume and significantly higher than the 36.8 million carats traded in 2022.
That means UAE lab-grown diamond volumes increased by more than 100% in only three years. Imports and re-exports have also grown strongly, suggesting that Dubai is becoming more than a final destination for these products. The city is increasingly acting as an international transit, trading and distribution point for lab-grown diamonds moving between major producing and consuming markets.
One detail stands out in the figures. Trading volumes expanded much faster than total trade value. That difference reflects the changing economics of the lab-grown diamond market, where production costs have continued to fall as manufacturing capacity expands and technology improves.
Dubai Sees Lab-Grown Diamonds as More Than Jewellery
Jewellery remains one of the most visible uses of lab-grown diamonds, but DMCC appears to be looking much further ahead. Synthetic diamonds have physical properties that make them useful in industries where strength, heat resistance, conductivity and precision matter more than appearance.
These materials can be used in semiconductor manufacturing, diamond wafers, quantum systems, medical technologies, aerospace components, precision engineering and other specialist applications. That gives the sector a different long-term potential compared with a market focused purely on jewellery.
For Dubai, this creates an opportunity to connect its existing commodities expertise with its growing ambitions in advanced technology and manufacturing. A future lab-grown diamond ecosystem in DMCC could involve not only traders and jewellery businesses but also technology developers, researchers, electronics companies and industrial manufacturers.
China, India and the US Continue to Lead the Global Market
The global lab-grown diamond industry is already shaped by several major markets. China has built significant large-scale manufacturing and research capacity, while India has become a major centre for chemical vapour deposition production, processing and polishing. The United States remains important both as a consumer market and as a centre for technology development.
Other countries including Japan, Israel and the United Kingdom also play important roles in research, industrial applications and diamond trading. The industry is therefore highly international, with production, technology development, cutting, distribution and consumption often taking place in different countries.
Dubai’s advantage lies in its position between many of these markets. The UAE connects Asia, Europe, Africa and the Middle East through major aviation, logistics and trading networks. DMCC is now trying to turn that location into a more permanent commercial role within the lab-grown diamond supply chain.
DMCC Has Been Expanding Its Lab-Grown Diamond Presence for Years
The launch of a dedicated Lab-Grown Diamond Vertical is the latest step in a strategy that DMCC has been developing for several years. Diamond Foundry established international sales operations in DMCC in 2020, while the free zone has continued to attract more companies involved in synthetic diamond production, technology and trading.
DMCC has also hosted dedicated Lab-Grown Diamond Symposiums, bringing together industry leaders, regulators, researchers and businesses to discuss market development, standards and future applications. Another symposium is planned for 2027, showing that the free zone intends to keep building international attention around the sector.
The new vertical formalises those earlier efforts. Rather than relying on individual companies or occasional industry events, DMCC can now build a more structured platform around lab-grown diamonds and develop services specifically for businesses operating in the market.
Dubai’s Diamond Trade Is Already at Record Levels
The lab-grown diamond expansion is happening within a much larger diamond trading industry in the UAE. The country’s total diamond trade reached a record $41.7 billion in 2025, strengthening Dubai’s position as one of the world’s most important diamond trading centres.
Lab-grown diamonds now add another layer to that market. While natural diamonds remain a major part of Dubai’s commodities ecosystem, synthetic diamonds could bring new companies into the city from industries that have little connection with traditional jewellery.
DMCC’s broader business environment also gives the initiative considerable scale. The free zone is home to more than 26,000 companies from over 180 countries and supports hundreds of different business activities. That existing network could help lab-grown diamond companies connect with finance, logistics, technology and international trading partners without having to build those relationships from scratch.
What the New DMCC Vertical Means for Businesses
For entrepreneurs and companies considering expansion into the UAE, the new vertical could create opportunities beyond simply buying and selling diamonds. Manufacturers, technology developers, industrial users, specialist traders, investors and service providers could all potentially become part of the ecosystem.
Businesses working in semiconductor materials, quantum technology, precision engineering and advanced manufacturing may also become increasingly relevant as industrial demand for synthetic diamonds develops. That makes the DMCC initiative particularly interesting for companies operating at the intersection of commodities and technology.
The free zone model may help accelerate this growth. Dubai has increasingly focused on developing specialised industry clusters rather than offering the same proposition to every business. A dedicated lab-grown diamond vertical gives DMCC a more specific platform to attract companies from an emerging global industry.
DMCC Strengthens Dubai’s Position as a Global Diamond Hub
Dubai has spent years building its reputation as a major international centre for diamond trading. The launch of the Lab-Grown Diamond Vertical suggests that the next stage of that strategy will look very different from the past.
The diamond market is no longer only about mined stones, luxury jewellery and traditional trading relationships. Synthetic diamonds are increasingly connected to advanced manufacturing, electronics, quantum systems and specialist industrial applications. That shift could open an entirely different type of business opportunity for Dubai.
With 76.9 million carats already passing through the UAE in a single year, the country has established significant momentum. DMCC’s challenge now is to turn rising trading volumes into a deeper commercial ecosystem where companies choose Dubai not only to trade lab-grown diamonds, but also to finance, develop, manufacture and apply them.
Sources
DMCC announced the launch of its dedicated Lab-Grown Diamond Vertical alongside new UAE trade figures showing record volumes in the sector. The original announcement is available through DMCC.
Additional context on DMCC’s earlier work in the lab-grown diamond sector can be found in its previous announcement on expanding Dubai’s laboratory-grown diamond ecosystem through DMCC.
Further reporting on the UAE’s growing lab-grown diamond trade is available from The National and Khaleej Times.