precious metals & gemstones - taqeem€¦ · gemstones other 10% 10% 5% 75% 4.55 mn usd (2018)...

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Precious Metals & GemstonesSaudi Arabia Valuations Market Assessment: Phase 1

17 April 2019| Final Report | Version 2.0

2

Table of ContentsProject Background

Key Takeaways

Market Assessment – Precious Metals and Gemstones Valuations in KSA

Grading & Valuations Overview - International Standards & Practices

Valuations Practice & Process – Valuations in KSA

Global Events – Calendar & Profiles

Interview List

3

9

11

23

33

49

71

3

Project Background

4

Project Understanding: Engagement Background

Currently TAQEEM is planning to assess, understand, develop, andregulate the valuations profession of the precious metals andgemstones in Saudi Arabia, and thus is would like engage with aconsulting firm to conduct a market assessment of the valuationprofession in this sector.

The scope of work for Phase 1 of this project would answer thefollowing key question:

How is the precious metals and gemstones valuations market in Saudi Arabia currently structured?

The Saudi Authority for Accredited Valuers (TAQEEM) was established to organizeand develop the valuations profession in Saudi Arabia through training andaccrediting valuers according to the best standards and practices. TAQEEM alsoworks on increasing the community's trust in the valuations profession, especially inthe real estate, enterprises, and automotive sectors.

Future Phases could include international best practice benchmarking, detailed recommendations for TAQEEM as well as implementation plan

development and execution

5

Project Understanding: Scope Overview

Saudi Arabia

Core Market Product Scope* Timeline

Precious Metals

§ Platinum§ Gold (14k, 18k, 22k, 24k)§ Silver§ Metals to be cast as

jewellery, bullion and raw metals not included in scope

Gemstones

§ Diamonds§ Rubies§ Sapphires§ Emeralds§ Other popular gemstones

in the KSA market

Other jewellery

§ Fine watches with intrinsic value e.g. solid gold pieces or pieces set with stones

§ 2017-2027f

Target Market§ Valuations Market (Precious

Metals & Gemstones)

Key StakeholdersSaudi Arabia (Core Market)

§ Valuation professionals§ Jewelers/Traders§ Precious Metals &

Gemstones Committees at Saudi Chambers

§ Customers§ Insurance companies

The below summarizes our understanding of the product scope, the target market , and key stakeholders:

6

Weeks from Start

Feb10

Feb17

Feb24

Mar 03

Internal Setup & Planning

Client Kick off

Project Planning & Design

Execution

Secondary Research

Interviews Setup & Execution

Analysis & Validation

Report Writing

Communication

Status Updates

Detailed Review & Presentations

Reports Delivered

Mar10

Week

Beginning

1 2 3 4 5 6

Project Schedule: ~ 6 weeks

KSA Precious Metals & Gemstone Valuations: Final Report

Mar17

The following shows the time required to complete the scope of work. It is estimated that Phase 1 of the project will require 6 weeks.

Step 0:

Project Planning &

Consultation with the

Client Team

Step 1:

KSA Precious Metals &

Gemstones Valuations

Market

7

Step 1: KSA Precious Metals & Gemstones Valuation Market

ObjectiveTo conduct secondary and primarily research to assess the precious metals & gemstones valuation market in Saudi Arabia, anddevelop detailed profiles of the valuers (companies & individuals). Conduct high-level research in to valuations events (global) andthe valuations processes in KSA. The following are the key areas of research:

Areas of ResearchAssessing Market Facts § Overall valuations market size by volume, forecast to 2027. Market split by valuation purpose and asset class/type§ Trend & growth drivers for precious metals and gemstones valuations in Saudi Arabia§ Challenges, barriers and constraints faced by the industry§ Overview of regulatory environments related to valuation, precious metals and gemstones§ Profiles of key government bodies concerned with valuation§ Profiles of domestic and international institutions that provide precious metals and gemstones education to valuers in the Saudi

Arabia marketProfiling Valuers§ The number of individual valuers and valuation labs in Saudi Arabia§ Profiling valuation companies: Number of employees – Employee profiles – Geographies covered – Specialist expertise and

experience – Years of operation§ Profiling individual valuers: Nationality – Age – Gender – Region – Qualifications – Valuation as primary employment – Years of

experience – Valuation volume breakdown by purpose and asset class/typeValuations-related Events and Conferences Globally (high-level)§ List and profile key jeweler, stones and valuations events along with basic information such as dates, location, key attendees§ Contact details for event organizers

Step 1: KSA Precious Metals & Gemstones Valuations Market

8

Step 1: KSA Precious Metals & Gemstones Valuations Market (cont.)

Areas of Research (cont.)Valuations Practice in Saudi Arabia§ Breakdown of key processes and time taken for valuers in KSA: Customer acquisition – Valuation – Report preparation and

certificate issuance§ Methods: üWhich valuation & research methodologies are commonly adopted by valuers in KSA?üWhich tools are used for valuation in Saudi Arabia e.g. reference books, catalogues, online, pricing indices, international

market values, digital tools?§ PricingüHow is valuation commonly priced in KSA? E.g. by no. of certs, by asset class etc.ü Trade pricing structures for jewelers etc.

§ ComplaintsüWhich complaints procedures have been established by valuers in Saudi Arabia?üHow common are complaints received?

Your Role:§ Provide any required information and access to internal documentations and external market studies § Arrange for meetings and shareholders interviews as needed§ Review, provide feedback, and approve the market assessment report

Work Products:§ KSA Precious Metals & Gemstones Valuation Report

Step 1: KSA Precious Metals & Gemstones Valuations Market

9

Key Takeaways

10Source: Solidiance Research and Analysis

Key Takeaways From The EngagementFor TAQEEM

1Despite the strong performance and large market size of the jewellery industry in KSA, there is a small and immature valuations sector in need of formal controls.

There is very little understanding of what formal grading and valuations are.

2 There is very little knowledge related to valuations and grading expertise in KSA and almost no standardised processes and procedures.

3Some Saudi nationals are seeking education and training related to grading and

valuations in this space. There is some interest within the market (particularly younger generations) to speed-up quality controls and transparency measures

within KSA.

4There are very well established standardised procedures, regulations and

accreditations available international that can be easily applied to the KSA market. The KSA market needs an authority, such as TAQEEM, that is able to

localise and apply these controls to the domestic market.

5These internationally recognised standards form the basic underpinnings of most

developed jewellery markets. There is an immediate opportunity to introduce these standards to KSA.

11

Market AssessmentPrecious Metals and Gemstones Valuations in KSA

12

3.4

0.7

0.01

Jewellery Market Valued Jewellery Valuation Market

Source: Solidiance Research and Analysis* 2 different models were used to assess market size

Valuations Market SizingPrecious Metals and Gemstones Grading, Appraisal and Valuation in Saudi Arabia

The valuations market is estimated at USD 9.1 MN in 2018.

Valuation Market size*, 2018 in USD Bn

20%

1.4%

• Imported jewellery represents the large majority of the jewellery market (90%), the remaining is locally manufactured. Although the value does not account for products illegally imported in the Kingdom

• Mark-ups on retail jewellery sales start at 200% and go as high as 800% for luxury stores

• Hence, the jewellery market in the KSA is estimated at nearly USD 3.4 BN of which nearly 20% is sent to valuation

• The remaining are either government requests done at no cost or products that have a GIA, HRD or internationally recognized authority certificate

• Finally an average of 1.4% cost of valuation is used to finalize the market size.

“GIA, HRD or IGI certified products do not need valuation. Similarly, when I got a 200+ KG valuation to do for the government few weeks back I did not charge anything. This being said usually I take about 1 to 2% of the product value”

- Sheikh Al Sagha, Riyadh

Market size estimated atUSD 9.1 Mn

“A lot of Jewellery retailers have left the market due to KSA economic conditions in the last few years. However it is expected to pick up in the midst of vision 2030 goals and as the economy grows back again”

- Freelance Valuer, Jeddah

13

Valuations Market BreakdownValuation depends on several criteria of each item and product

Source: Solidiance Research and Analysis

50%

35%

15%

9.1 Mn USD(2018)

Market Size

Precious Metals

Gemstones

Other

10%

10%

5%

75%

4.55 Mn USD(2018)

Precious Metals

Gold

Silver

Platinum

Other

10%

10%

30%

45%

5%

3.19 Mn USD(2018)

Gemstones

Diamond Sapphire

Ruby

Emerald

Other

Valuation BreakdownValuation Criteria

Grade Brand

Weight Origin

International Price

MarketPrice

“While Gold and diamond are easier to value, because of international prices, gemstones are rarer and much harder to value. In some cases, different valuator would give different values for the same piece.”

- Sheikh Al-Sagha, Riyadh

Precious metal and in particular gold, considered as an investment by most, represent the largest share (50%) of the valuation market.


Valuation for insurance services is not commonly provided in KSA, with 80% of valuations services demand being focused on purchasing, selling and reselling.

Valuations PracticeDemand for Valuations by Purpose

HighLow

# Purpose Description Demand

a Purchasing • Individuals who want to buy a piece of Jewellery require validation of the type, quality, and price of the product

b Selling & Reselling • Stores who purchase products for the purpose of reselling require grading and valuation services to determine exact price

c Inheritance • For cases regarding inheritance breakdown, valuation is important to determine the value/worth of each piece

d Market Exit • For a jewellery store/company wants to exit the market, valuation is needed to determine the selling price of the inventory

e Insurance• Frequent valuation is needed to have full insurance coverage

over precious metals, stones, and jewellery products for safety purposes

40%

40%

9%1%

10% Purchasing

Selling & Reselling

Inheritance

Insurance

Market Exit

Valuation Breakdown

“Valuation is a service that is highly required by individuals, shops, and companies serving several purposes, such as, buying, selling and reselling, inheritance, insurance, and market exit. The service is highly related to KSA’s economy, and the resident’s purchasing power.”

- Personal & Admin Supervisor, Platinum Sands

15Source: Solidiance Research and Analysis, L’Azurde Annual Report 2018

Jewellery Market OverviewJewellery Industry Value Chain

KSA players are active across the value chain and adopt several RTM models.

SOURCING DESIGN & FABRICATION

WHOLESALE & DISTRIBUTION RETAIL

Gold in KSA is primarily sourced from three channels:

1. Banks & Commodity Traders

2. Gold Mines

3. Ore processing scrap recovery

Diamonds/stones are imported from multiple sources including Belgium, India and South Africa.

Typically, imported diamonds are polished and ready for use.

Jewellery designs vary from one region to another. Tastes differ according to geographic location and motives for purchase.

Rural customers prefer traditional 21k gold pieces. Urban customers prefer fashionable 18k gold pieces.

There are three major manufacturing techniques: Pressing, Casting, Advanced techniques e.g. 3D printing

In KSA, Jewellery is either manufactured at small workshops with basic techniques or large factories with advanced techniques for high volume

Pure Wholesaler:Primarily work with retailers that do not have direct contact with the manufacturers. Moreover, retailers prefer to work with wholesalers.

Fully Integrated Manufacturer and Retailer:Manufacturers with established vertical integration and a retail network.

Manf/Wholesaler:Manufacturers with their own wholesale channels. This configuration allows for higher profit. Focus on expanding their capacity to supply the wide network of independent jewellery retailers across KSA

Gold souks:Bazaar like marketplaces that have a high density of shops that sell both low and high-end jewellery. This is the most common retail destination in the Kingdom for gold jewellery by weight.

High streets: Standalone shops located on high streets in city centres. These retailers primarily sell diamond jewellery by piece, as retail operations require higher margins.

Shopping malls: Stores in malls selling jewellery items that are more commonly sold by piece rather than by weight

16Source: Solidiance Research and Analysis, L’Azurde Annual Report 2018

Jewellery Market OverviewJewellery Consumption in Saudi Arabia

There are four key types of Jewellery consumption patterns in KSA…not all are likely to need valuations and grading services.

Occasion-Driven

Primarily driven by social events such as weddings, births, occasions (Eid, Mothers’ Day,...) and anniversaries.

Fashion-Driven Driven by increasing urbanization and the rising disposable income of the younger population. Purchases are typically made by young female consumers

for daily use for attending social events.

Savings-DrivenTypically considers gold jewellery purchases, especially 21k jewellery, as storage of wealth. In the Kingdom, gold jewellery is traditionally considered to preserve

women’s wealth after marriage and is used as a money proxy in times of hardship or high inflation.

Investment-Driven

Typically in the form of coins and bars of 24k gold. Gold is used as a hedge against volatility during times of economic, political and social uncertainty.

Types of Jewellery Consumption in Saudi Arabia andLikelihood to need Grading and Valuations Services at any point in the Jewellery Lifespan

Moderate

Low

High

High

Updated

17Source: Solidiance Research and Analysis, Richemont Annual Report 2018, Tiffany Annual Report 2018, Pandora Annual Report 2018, L’Azurde Annual Report 2018

Jewellery Market OverviewMarket Temperament

Key players in the market have an overall pessimistic outlook. Lack of trust in distributors is key.

WHAT THE MARKET SAYS“Our Middle East platform developed a number of

operational improvements, notably the creation of a subsidiary in Saudi Arabia to internalise the business

operated by distributors (wholesale activity and POS), and the opening of a 4 300m2 new

Operations Centre in the Dubai Duty Free Zone.” –Richemont, 2018 Annual Report

WHAT THIS MEANSRichemont is a global luxury brand leader. Their attitudes

towards markets are a good indicator of market performance and outlook.

Sales in the Middle East and Africa increased by 2%, but were adversely impacted by inventory buy-backs and geopolitical

uncertainties. There is little trust in regional distributors.

Middle East business is based on wholesale operations only as well as third-party licensing.

There is little direct brand oversight which suggests that there is not a focus to scale-up or develop the region. Tiffany’s

products are typically large-ticket items so this could be lack of trust in the upper luxury markets, specifically

distributor/partner confidence.

Even though a low-luxury brand, it is important to consider a key retailer’s position on KSA.

Pandora grew it’s Saudi POS by ~40% in 2017-2018, boosting its concept store footprint.

Pandora is clearly confident in the KSA market as it factors in to its recent growth plans. There is confidence in the low-mid

luxury market. This market is not reliant on local craft work and is retail only.

Due to challenges in KSA, L’Azurde has been focussing on growing its overseas businesses. It cites the impact of KSA VAT and Saudization as a main

reason for its big increase in expenditure, and drop in KSA business, eating in to profits earned

elsewhere.

L’Azurde is one of the biggest wholesale and retail players in the KSA jewellery market. It has a negative view on the domestic market partly due to the current regulatory

environment. One of the key aims of its 2019 strategy is to revitalize the KSA business.

18

Regulations Pros ConsObtaining a jewellery trade license from the Ministry of Commerce and Investment, before entering the market Control and supervision Additional licensing fees

The Ministry of Commerce supervises and controls the trade and industry of precious metals, gemstones, and jewellery

More regulations and standards can be issued

Additional restrictions and regulations to abide

The sale of items covered with precious metals, or items which feature lower than regulation purity gold is prohibited except in accordance with the instructions issued by a decision from the Minister Of Commerce

Monitoring the quality and purity of precious metalstraded among jewelers

Prohibits obtaining certain low quality items for which there may be demand

The sale of items with precious metals in irregularly large quantities, or of higher value is prohibited unless stamped with the Kingdom Stamp

Secure transactions of high value

Additional restrictions on the sale of big ticket items

Saudi Customs has the right to examine, test, and analyze the validity of any imported item

Monitoring the quality and validity of items imported

Can lead to delays in supply and delivery

The Ministry of Commerce may issue a resolution to approve the hallmarks and stamps of other countries Regulating imported items n/a

The Ministry of Commerce may compel owners of precious metals workshops to use milling marks, to be registered at the ministry, to distinguish their artifacts

Regulating locally manufactured items

Additional restrictions on local players

Anyone who commits a violation to the law provisions and regulations shall be punished with a fine of around 200,000 SAR

Prevention of law violations

If violated, can lead to severe financial loss

To open a shop an investor is required to get an approval on a letter submitted to the municipality to operate in a certain space

Regulate new entrants to the market

Little transparency on how decision is made


Regulatory OverviewPrecious Metals and Gemstones Grading, Appraisal and Valuation in Saudi Arabia

The Ministry of Commerce has taken several initiatives to monitor and control grading and quality within the Saudi jewellery market by establishing some rules and regulations

Updated

19

DRIVER

S

BARR

IERS

Market AssessmentMarket Drivers & Barriers to Growth

1. MARKET STRENGTH 1. ECONOMY

2. REGULATION

3. PURCHASE PATTERNS

4. EDUCATION

2. VISION 2030

3. IMPROVED REGULATION

4. E-COMMERCE


20

DRIVER

S • Strong luxury and jewellery markets in Saudi Arabia• Market growth driven by strong repeat purchase patterns

and behaviours• Saudi customers have a high level of exposure to

‘window markets’ in Europe and the GCC• Increasing levels of understanding and education

surrounding gemmology

Market AssessmentMarket Drivers

1. MARKET STRENGTH

2. VISION 2030

3. IMPROVED REGULATION

• KSA aims to reduce dependence on oil & gas sector –the 2018 budget focuses on expansion in non-oil sectors such as construction, transport and utilities

• Various social and economic reforms in Saudi (removal of foreign ownership cap in some sectors, privatization of government assets, reduction in subsidies, etc.) is expected to ease growth barriers and lead the shift towards a more market-driven economy

• Increase in international investment in the Kingdom, which will allow several international jewellery companies to operate in KSA

• Vision 2030 will also create more job opportunities that will lead to a decrease in unemployment rate, hence increasing expenditure per capita, boosting the citizen’s purchasing power

• If valuations standards and regulations are put in place; then the jewellery market could be monitored, controlled, standardized, and boosted

• ‘Gold’ and ‘Diamonds’ are among the top ten most searched topics in fashion and shopping on Google in KSA. 70%+ of all jewellery searches were on a mobile device, and half of these were in Arabic. Watches were among the top searched accessories and Rolex made it to the top brand searches across the board

4. E-COMMERCE


21

BARR

IERS

• Lack of education and training for retailers in the market• Lack of education and training for gemmological

laboratory technicians in the market• The government does not provide any official training for

valuation and testing for jewellery

Market AssessmentBarriers to Growth

1. ECONOMY

2. REGULATION

3. PURCHASE PATTERNS

4. EDUCATION

• Reliance on oil revenues: As of 2017, oil revenues make up ~63% of total revenues which means that the economy will be reliant on oil and vulnerable to oil price volatility. Hence, it may be difficult to maintain government spending if oil prices were to weaken

• Saudization – Ministry of Labor Saudizing jobs and clamping down on tasattur in the jewellery and gold industries has seriously increased labour costs – this may have a direct impact on value of goods. It is also not expected that craft skills can be easily passed on in Saudization programs which may cause further harm to the jewellery industry in KSA

• Lack of standardization in the market with regard toquality, valuations and sales

• No centralized authority covering the grading, valuation and appraisal markets unlike other markets globally

• Currently only one internationally certified testing laboratory operates across KSA (SGL), with no valuation services provided

• Currently the Saudi jewellery market does not enforce any regulations on imported and manufactured jewellery

• Purchase patterns and behaviours strongly fashion and trend driven

• Saudi customers are highly influenced by brands and marketing which boosts demand for imported jewellery products that is likely to already be graded, certified and will be valued in adherence with global pricing mechanisms for the brands/distributors


Updated


It is hard to forecast the valuations market due to a small current market size fully dependent on awareness, controls and regulation that could be soon introduced. The Jewellery market as a whole is showing mixed optimism and pessimism. It is more beneficial to assess the likelihood of growth based on the proposed controls to be introduced by TAQEEM.

Valuations Market Sizing - ForecastPrecious Metals and Gemstones Grading, Appraisal and Valuation in Saudi Arabia

External Factors Weight Rating Weighted ScoreDrivers for Growth - Great Potential

1 Market Strength 13% 4 0.522 Vision 2030 10% 3 0.33 Improved Regulation/Promotion of Valuations 21% 4 0.84

4 E-Commerce 6% 1 0.06Barriers to Growth - Current Realities

1 Economy 7% 1 0.072 Regulation 15% 2 0.33 Purchase Patterns 10% 2 0.2

4 Education 18% 2 0.36

100% 2.65Rating for Impact on Industry Growth in Saudi

Arabia1.0 Poor2.0 Average3.0 Above Average4.0 Superior

Weight Attribution0.0 Not Import1.0 Important

The average score in an EFE Matrix is 2.5. A number higher than this shows strength and prospects for growth.

Crucially, the two most important factors impacting the growth of the valuations market are within TAQEEM’s control.

23

Grading & Valuations OverviewInternational Standards & Practices

24

Grading & Valuations Process OverviewGrading Gemstones (1/2)

To provide a broad overview of grading gemstones, it is best to understand the process of GIA diamond grading – the GIA principles are widely established and are mimicked by other authorities.

Source: Solidiance Research and Analysis, GIA

GRADING GEMSTONES - OVERVIEWThe quality and value of gems is subjective and no two are the same. The idea of grading stones was determined by jewellers and laboratories to ensure that stones are judged on the same, at least similar, scales. This is to help both the buyer and the jeweller understand the stone they are dealing with and then one can determine its value as a market rate.

One of the most prominent bodies to establish these grading scales was the GIA – Gemological Institute of America – who developed the 4 C’s.

Diamond Grading

The most prominent example of gemstone grading is, of course, diamond grading.

The GIA diamond grading scale of the 4 C’s form the basis of most diamond grading globally.

The GIA scale measures the color grade of diamonds, size, position, and nature of the diamond,as well as the other three C’s of diamond grading: carat, clarity, and diamond “cut” grade.

Carat

The equipment used to measure the weight of the diamond is an electronic micro-balance.This captures their weight to the fifth decimal place. Another tool used during this process is anoptical measuring device. This device dictates their exact measurements, proportions,and all facet angles.

Color (and Flouresence)

The light source and the background can have a major impact on how the color appears. Therefore, the GIA grades diamonds in a standardized viewing environment. There are multiple color graders who each submit their independent opinions into the system without consulting with each other. None of them know what color grading choice the other has chosen. Once everyone is done, the color grade is determined by inspecting what color was chosen by the majority of the color graders.

The grader then places the diamond under special UV lighting to determine if the diamond exhibits fluorescence and to what degree. Several graders go through the same process to ensure the accurate colour and fluorescence grades are assigned to the diamond.

25

Grading & Valuations OverviewGrading Gemstones (2/2)

To provide a broad overview of grading gemstones, it is best to understand the process of GIA diamond grading – the GIA principles are widely established and are mimicked by other authorities.

Source: Solidiance Research and Analysis, GIA, HRD Antwerp

Clarity

Clarity of diamonds is graded with 10x magnification under standard viewing conditions. Professional diamond graders will carefully examine the diamond in order to locate specific clarity and finish characteristics. They also look for any evidence of previous diamond treatments, such as laser drilling or feature filling. The grader will then assign their professional opinion on the diamond’s overall clarity, polish, and symmetry. They plot these characteristics onto a diagram that represents the diamonds shape and faceting style. During this time, the grader will verify the previously captured weight and measurement data. They will then write a thorough description of the diamond’s culet, along with its girdle thickness.

Cut

Cut quality grade is only for standard round brilliant diamonds. The diamonds must fall into the GIA D-Z color range. Once the color and clarity grading process is complete, the diamond’s proportions and descriptions from the above steps are used to determine its GIA Cut Grade. Graders also take into consideration the brightness, weight ratio, durability, symmetry, and scintillation (sparkle and pattern) when assessing the final cut quality.

Other leading laboratories such as HRDAntwerp also use the 4C’s principleto clearly define diamond grades.

There may be some variation interminology but the grading systemsare broadly standardised.

There are many other grading bodies thathave much lower standards – particularlyIndian bodies. The main bodies (GIA, IGI, HRD)are the only ones with sound reputation.

GRADING GEMSTONES - OVERVIEW

26

CaratCarat weight is significant; it can also be measured in millimeters for round brilliant

cut diamonds

Grading & Valuations OverviewDiamond Grading Scales

Accurate and standardized grading is important in a market environment as the impact on the value of a stone is generally high.

Source: Solidiance Research and Analysis, GIA, HRD Antwerp

ColorColor is measured on a scale with D, E and F

being considered the highest grade, colorless diamonds that yellow as you move

down the scale

ClarityA diamond grade on the clarity scale

signifies how included the diamond is (I grades) up to FL/IF grades that signify

internally flawless or flawless to a loupe

CutCut usually means the shape of the stone, however, the quality of a cut can also be

graded or some shapes based on how the light refracts in the stone

Grading Criteria Scales

27

Carat

Grading & Valuations OverviewImpact of Grading on Valuations

Accurate and standardized grading is important in a market environment as the impact on the value of a stone is generally high.


Color

Clarity

Cut

Very High

High

Very High

Low • Cut and diamond shape are subjective and emotive decisions. The most popular cuts are round and princess cut – popularity, if anything, can have an impact on pricing but this is generally low.

• The differences in clarity are larger than the differences in color because the scale is smaller. Diamond values can therefore be quite large between clarity grades. Naturally, the highest clarity grade are much rarer and so the price jumps are quite large.

• The differences in price can range from 15% - 25% between diamond clarity grades and the differences within the same clarity grade can range from 5% -15%.

• The price difference between each color grade (all else being equal) ranges from about 8% to more than 25% in the higher colors.

• Color can be seen without magnification for the lower range, however with the higher color range, you may need magnification to see the color imperfections.

• Diamond pricing increases as diamond carat weight increases. That means once a diamond hits it’s critical weight, the price jumps.

• Manufacturers will do everything they can to keep the diamond weight at or above each critical weight.

• Suppliers and other market players are aware of this dynamic, so they’ll price their diamonds accordingly.

Grading CriteriaImpact on Valuations Description


Synthetic Diamond TypesCVD & HPHT Diamonds

Colorless synthetic diamonds can be produced by Chemical Vapor Deposition (CVD) or an older method, High Pressure High Temperature (HPHT) treatment.

• CVD synthetic diamonds began appearing in the gem diamond market about a decade ago. The process involves introducing a gas, such as methane, into a vacuum chamber, then activating and breaking down the molecules of the gas with microwaves.

• The CVD method is much less costly because it works at moderate temperatures and low pressure, which requires smaller and less expensive equipment. Because the vacuum chamber contains only carbon and some hydrogen, colorless crystals can be grown. If nitrogen or boron is introduced into the chamber, yellow or blue synthetic diamond crystals can be produced.

• The HPHT method, first used to successfully grow diamonds by General Electric in 1954, essentially mimics the natural process - carbon is crystallized as diamond through intense heat and pressure deep within the Earth.

• The HPHT process is very costly, given the energy and equipment required, and produces diamonds with mainly yellowish or brownish yellow colors.

CVD Diamonds HPHT Diamonds

The difference in value could be up to 35% when compared with a natural diamond; it is important for players in KSA to understand the synthetic market and have it regulated.

SGL, the only international lab player in KSA, provides certification for HPHT diamonds – this may even confuse the market as this is not a standard practice.

Takeaways for TAQEEM:

29Source: Solidiance Research and Analysis, CIBJO

International Grading & Valuations BodiesCIBJO

CIBJO sees itself as the “United Nations of Jewellery” and seeks partnerships with Jewellery trading nations and their respective authorities.

• With its membership made up largely by national jewellery trade organizations from more than 40 countries around the world, CIBJO covers the entire jewellery, gemstone and precious metals sectors vertically, from mine to marketplace, and horizontally within each of the component sectors in the various production, manufacturing and trading centres. Most of the international jewellery sector’s leading corporations and service providers are also affiliated to CIBJO through commercial membership.

• The harmonisation of industry standards has been a critical element of CIBJO’s mission, and has stood at the heart of its effort to protect the confidence of consumers in the jewellery product itself.

• To advance the goal of universal standards and terminology in the jewellery industry, CIBJO developed its Blue Book system, which involves definitive set of standards for the grading, methodology and nomenclature of diamonds, coloured gemstones, pearls and other organic materials, precious metals and gemmological laboratories.

• The CIBJO Blue Books are definitive sets of grading standards and nomenclature for diamonds, coloured gemstones, pearls, coral, precious metals, and gemmological laboratories.

• In almost complete absence of jewellery industry standards endorsed by the International Standards Organisation (ISO), the CIBJO Blue Books are the most widely accepted set of globally accepted standards.

• CIBJO’s Do’s & Don’ts is a simplified guide to assist those selling diamonds, coloured gemstones, corals, pearls and/or any related artificial products, in understanding the obligations they have towards their customers, as well as recommended supplier interactions.

• It’s Arabic version is co-published in partnership with DANAT – The Bahrain Institute for Pearls & Gemstones.

OVE

RVIE

WIN

THE

REG

ION

Standards

Education

30Source: Solidiance Research and Analysis, GIA

International Grading & Valuations BodiesGIA – Gemological Institute of America

The Gemological Institute of America (GIA) is one of the foremost and recognized bodies when it comes to diamond grading and Jewellery education. It is active in the Middle East from its based in the UAE.

• Established in 1931, GIA is one of the world’s foremost authorities on diamonds, coloured stones, and pearls. A public benefit, non-profit institute, GIA is the leading source of knowledge, standards, and education in gems and jewellery. In the 1940s, GIA established the “4Cs” and the International Diamond Grading System™ – to this day, the worldwide standard for evaluating diamond quality.

• GIA defines its services as falling under 3 categories:• Educate: Students around the globe turn to GIA for the knowledge, skills, and

credentials that launch successful gem and jewellery careers

• Research: The world leader in gemological research, GIA’s breakthrough discoveries deepen our understanding of gemstones and the world

• Protect: Through research, education, and unbiased gem grading and analysis, GIA strives to protect the gem and jewellery buying public by setting global quality standards.

• GIA has a campus in Dubai which serves its regional educational needs. There is a full schedule of 2019 courses lined up, heavily subscribed by candidates from across the region, including KSA.

• GIA diplomas are one of the most recognised qualifications in the global gem and jewellery industry. A diploma programme may be undertaken full-time on campus or via online distance learning through GIA's headquarters

• The Applied Jewellery Professional (AJP) accreditation is GIA’s flagship

• GIA also offers laboratory services in Dubai for diamond and stone grading reports

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31Source: Solidiance Research and Analysis, IGI

International Grading & Valuations BodiesIGI – International Gemological Institute

IGI has been active in the UAE since 2011. Whilst considered less prestigious than GIA, it has a longer and stronger foothold in the region.

• Founded in Belgium, IGI is the world's largest independent gem certification and appraisal institute for diamonds, coloured gemstones and jewellery.

• It operates laboratories & offices in Antwerp, New York, Hong Kong, Mumbai, Bangkok, Tokyo, Dubai, Tel Aviv, Toronto, Los Angeles, Kolkata, New Delhi, Thrissur, Jaipur, Surat, Chennai, Ahmedabad and Hyderabad.

• The IGI School of Gemology has locations in Antwerp, Mumbai, Delhi, Hyderabad, Surat, Ahmedabad, Chennai, Dubai, Shanghai, Rome, Ascoli Piceno, Trecastagni, Cavalese, Marcianise.

• IGI offers its educational programs in the UAE. It offers grading courses in rough diamonds, polished diamonds, coloured stones and jewellery design

• In 2011, IGI opened its laboratory facility in the UAE to serve regional customers.

• IGI in Dubai boasts the organisation’s largest laboratory globally.

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International Grading & Valuations BodiesThe UK Valuations Sector Example

The UK, in particular, has a strong valuations sector with several authorities involved in industry regulation and providing training.

• The Gemmological Association of Great Britain, or Gem-A, is one of the world’s longest established provider of gem and jewellery education.

• Its Gemmology Diploma evolved from the first gem course proposed for the UK jewellery trade in 1908, and its prestigious Gemmology and Diamonds Diplomas — taught in seven different languages and 26 countries around the world — are recognised throughout the world.

• The NAJ is the UK’s leading jewellery trade association with over 2,000 members. Every NAJ member abides by the NAJ’s Code of Conduct, based on honesty, integrity and professionalism. Purchases gain peace of mind and confidence by purchasing from an NAJ member.

• The Association was formed in 2015 through the unification of the British Jewellers' Association (BJA) and National Association of Goldsmiths (NAG). The Institute of Registered Valuers is also part of the NAJ family, comprised of around 150 professional valuers with formal qualifications and substantial experience.

• The IRV is a body under the NAJ. It is the premier valuations body in the UK

• To become an IRV Member (MIRV) the following pre-requisites are required of the applicant:• The Certificate of Appraisal Theory (CAT) or its predecessor, the Professional

Jewellers' Valuation Diploma (PJValDip) – provided by the NAJ.• A minimum of five years' experience in the jewellery trade/industry.• A gemmological qualification (including practical elements)• A diamond grading training certificate• Applicants will also be required to submit sample valuations.

Education

Education

Education

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Valuations Practice & ProcessValuations in KSA

34

Process OverviewAppraisals & Valuations: Definitions

The words “grading”, “appraisal” and “valuation” are often wrongly used interchangeably. A common definition is required to understand what is commonly available in Saudi Arabia and what is not


GRADING APPRAISAL VALUATION

Accurate grading of gemstones and precious metals is required to conduct a formal valuation. A valuation ties an item’s intrinsic properties to market realities and conditions to arrive at a formal financial value.

Valuation is the calculation and assignment of the gemstone or jewellery item's financial value based on its grading and accurate market rate.

Valuations are required when a definitive value is needed. In some established markets, reasons for this typically include establishing the value for insurance and probate purposes.

Appraisal is the judgement, assessment and quantification of the jewellery piece or gemstone. This would include things like the quality and weight of the gold or platinum, the workmanship, the quality of the gemstones, their weight and dimensions etc.

Appraisals are only intended as a less formal guide to pricing and valuation. Appraisals are estimated by knowledge of the local market and recent sale prices and should only ever be used as an accurate estimate of price. In most established markets, they are not definitive and have no legal standing.

Grading is when trained gemologists and support staff utilize instruments and knowledge to ascertain the grading of gemstones or purity of metals or a combination of both for set jewellery pieces.

Stones are checked first for authenticity and then measured and graded for accuracy and type of cut. Stones are then graded under magnification for clarity and has its characteristics recorded.

Stone colour is then graded in a controlled environment based on a recognised scale dependent on the type of stone.

Certificates are often issued at the end of this process that validate the stone being sold and provide trust to the end-purchaser.

In Saudi Arabia:• Imported branded products may already

be graded and certified• This will be checked by customs for

imports. SGL works closely with customs.

In Saudi Arabia:• Local retailers and freelance

graders/valuers will be able to provide indicative appraisals based on market knowledge

In Saudi Arabia:• Formal valuations are not common in

Saudi Arabia. Those requiring such documents will be referred to the regional Sheik al-Sagha

35

Key Stakeholder OverviewPublic Entities Overview


Stakeholders Key Roles of Stakeholder

Public Entities

• Supervises and controls the trade and industry of precious metals, their artifacts and the items covered, painted and inlaid with them and also the gemstones

• Examines, analyzes, and identifies the material used, type of products, and different characteristic levels

• Fixes the prices and fees of the the various products• Supervise, and control of all imported, and exported

jewellery products • Conducts sample testing on imported products• Has the right to validate and ascertain the price of the

product in relation to value

• In charge of establishing the rules and regulations for precious metals and gemstones industries and markets within the Kingdom

• KSA is divided into 13 regions, in which every region develops a committee for jewellery

• Each region appoints a representative for grading, appraisal and valuation

• Every regional representative appoints a jewellery value (Sheikh Al-Sagha) responsible for grading, appraising and valuing jewellery, precious metal, and stones

Precious Metals & Gemstones National

Committee

Saudi Regions & Municipalities

Valuation Representative(Sheikh Al-Sagha)

Key Points:• Governmental entities are the stakeholders in-charge of establishing the Kingdom’s rules and regulations of the

jewellery market• Governmental entities tend to focus more on the quality, purity and integrity of manufactured, imported, and

exported jewellery, testing the material, and regulating the industry

Updated

36

Key Stakeholder OverviewPrivate Entities Overview



Private Entities

• SGL is the only internationally certified laboratory operating across the entire Kingdom and also works with Customs

• HRD Antwerp is the only recognized global educator conducting workshops within KSA and has done since 2018

• Freelancers are mainly experienced, and certified individuals/sole traders capable of grading and valuing stones and set jewellery

• Local manufacturers source, produce and retail products within KSA

• They would require the services of graders and valuers within the market or other markets in order to sell certified pieces

• International brands tend to import their entire inventory from Europe, UK, USA, and India

• Companies tend to have a distributor in the KSA, or are represented by a Saudi company/agency

• International brands have global pricing schedules and will adjust them for local market taxes and duties

• Branded pieces tend to come with GIA/other certificates• Local jewellery retail shops tend to exist in big numbers

across the main cities of KSA• Shops have a high tendency to buy from the end-user• Several local shops provide valuation services

Local Manufacturers/Supplier

International Brands

Local Shops/Retailers

Laboratories & Education

Freelance Graders, Appraisers and Valuers

Key Points:• Private stakeholders tend to focus more on sales, distribution, and increasing revenues, rather than testing and

valuation• Valuation is mainly a service provided by local players (shops)/freelancers for those that require services• International players in KSA are mainly well-known brands that are present in the market to increase revenues

and gain market share and whose pre-certified pieces will be priced according to global schedules

37

Key Stakeholder OverviewOverview of Stakeholders Involved in Extractives Industry

Source: Solidiance Research and Analysis, SASO*SASO’s standards are available to read/view online through its website


Extractives

Stakeholders

• Saudi Standards, Metrology and Quality Organization (SASO), has also been involved in the market but at the extraction level and not as much from a finished product (jewellery) perspective

• SASO’s laboratories under the General Administration of Laboratories do not deal with finished stone grading and its metallurgical lab specialty deals with precious metals from a geological/extractives angle

• SASO has been responsible for the KSA standardization market and has implemented 3 ISO standards that affect the extraction, finishing and grading of precious metals*:

• ISO 15093: 2018 - Jewellery — Determination of precious metals in 999 0/00 gold, platinum and palladium jewellery alloys - Difference method using ICP-OES

• ISO 9202: 2018 – Jewellery – Fineness of Precious Metal Alloys• ISO 11426: 2018 – Jewellery — Determination of gold in gold

jewellery alloys – Cupellation method (fire assay)

• Saudi Geological Survey (SGS) is an independent entity attached to the Ministry of Petroleum and Mineral Resources

• As gold is a mineral resource rich in KSA, the SGS is involved in training and education at the extractives phase only and is not involved with the valuations practices for finished metals or the jewellery market

New

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Saudi Arabia

Mapping Representative Description

• LocationEvery province appoints one or more representative in charge of jewellery valuation in a city or more


A total of 27 Appointed Representative/Valuers spread across the KSA, each in charge of providing valuation services in a region. The Sheikh Al-Sagha is considered as an experienced jeweler, with reliable valuation skills

Profiling ValuersRegional Valuer Overview

Appointing Process

1

Forms a committee for the region’s jewellery market

KSA Province

jewellery Committee

Appoints a regional jewellery valuer

Appointed Valuer

In charge for all valuations in the region

2 3

“The appointed representative, Sheikh Al-Sagha is an experienced individual capable of valuating all kinds of precious metals and gemstones.”- Manager, DAMAS KSA

Azaa Hussein Mohamad Abdulwahab

Ibn Issa

Faidy Al-Hashidy

Faisal Al-Khamis

Mohamad Mosfar Ankis

• Qualifications1. The valuer must be a Saudi National2. Registered & licensed member in the government3. Some valuers inherit the business4. Owner or a General Manager of jewellery company5. At least 5 years of experience in the jewellery market

Baker Abdulghani Al-Saegh

Shoueib Salamah

Exceptionally, Jeddah has two valuers: Sheikh al Sagha in charge of precious metals & Sheikh Al Jawaherjiah for diamonds & gemstones


Saudi Arabia

Mapping Representative Description• LocationFreelancers are usually located in the largest cities such as Jeddah, Riyadh, and Dammam; where the jewellery market excels

About ~250 Freelancers are present in the main cities of KSA; hold an international certifications and/or Diplomas from renowned institutions

Profiling ValuersFreelancer Overview

Roles and Responsibilities

“Freelancers tend to be well trained in the valuation of jewellery, holding several international grading and valuation certificated from USA, and UK.”- Boutique Manager, Al-Fardan

• Qualifications1. Freelancers represent a younger cohort of Saudi Nationals

that hold a bachelor/masters in Gemology2. Most freelancers are certified in the grading of precious

metals and gemstones from GIA or HRD3. Freelancers are internationally licensed valuers4. Freelancers own their personal shops and/or laboratories

Freelancer Concentration

Grading & Testing: Freelancers usually provide grading and testing for all kinds of jewellery via personal or outsourced laboratories. Main tools used for the process are scales, gauges and of course the need of proper lightingAnalysis: Testing results are analyzed along with the item description (antique, owned by a royal member, branded…etc.) Valuation: Finally, a monetary value is given based on the valuation purpose (purchasing, selling, insurance…etc.). Similar criteria as above are taken into account

Services provided by freelancers are more expensive than those given by appointed valuers, estimated at 2% to 3% of the product price

Updated

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Key Stakeholder ProfileMinistry of Commerce


Ministry of Commerce Objectives

• Develops regulations and standards that monitors the quality of domestic and international products

• Supervise and controls the trade and industry of precious metals, their artifacts and the items covered, painted and inlaid with them and also the gemstones

• Appoint and formulate respective committees that take charge of monitoring the province’s business sector

• Examines, analyzes, and identifies the material used, type of products, and different characteristic levels

• Adjusts prices and taxes for various imported products

Roles

Supervise

Control

Examine Implement

Analyze

Regulate

Ministry of Commerce: To enhance the potentials of both commerce and investment sectors and protect the beneficiaries' interests, by developing and implementing effective and efficient policies and mechanisms, which will contribute to achieving sustainable economic development

Riyadh, KSA

Updated

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Key Stakeholder ProfileSaudi Customs


Roles

Supervise

Control

Test VAT

Analyze

Regulate

Saudi Customs Objectives

• Supervise and control over all imported and exported products and material through land, sea, and air ports

• Adds the VAT percentage based on the price, and type of the product imported

• Conducts sample testing on imported products in collaboration with third party laboratories; such as SGL

• Has the right to validate and ascertain the price of the product in relation to value

• Implement governmental standards and regulations of products and items on the country’s ports of entry

King Abdulaziz Port, Dammam

Batha

King Khalid Intl.

Airport, Riyadh

Jeddah Islamic Port

King Abdulaziz Intl. Airport,

Jeddah

King Abdullah

PortRiyadh (Dry Port)

King Fahad Intl. Airport

Saudi Customs: Proceeding from our role in Vision 2030 of the Kingdom of Saudi Arabia, Saudi Customs vision aims to support the Kingdom in building a prosperous economy that utilizes its strategic geographic position. The customs aim in regulating, and monitoring imported and exported products

Port Airport Dry-port

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Key Stakeholder ProfileCouncil of Chambers


Roles

Supervise

Precious Metals & Gemstones National Committee: Set-up initiatives, and regulations that contribute in boosting the jewellery market in the Kingdom. The committee takes lead in organizing international events in the Kingdom that favors market development

Riyadh, KSA

Council of Chambers Objectives

• Representing the jewellery sector’s in the international arena, including events and conferences

• Conveying the concerns of the market to responsible governmental entities

• Develop regulations concerning a given business sector

• Supervise the activities of municipal and domestic committees

• Implement and organize initiatives which aim in developing and boosting the jewellery market

Control

Improve Implement

Report

Appoint

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Key Stakeholder ProfileSaudi Regions & Municipalities


RolesField Supervision

Saudi Regions & Municipalities: Is the governmental entity responsible for each province in implementing and developing the province’s economy. Every municipality supervise and regulates its own economy

Monitor

Improve Execute

Report

Appoint

Saudi Regions & Municipalities Objectives

• Appoint one or more valuer responsible for public valuations of items and products

• Develops a local committee that monitors the province’s jewellery market

• Implement governmental regulations and standards regarding licensing, quality of products, and price regulations

• Supervise the work of jewelers in order to eliminate market fraud

• Responsible for improving the overall province’s business sector


Key Stakeholder ProfileInternational and Local Jewelers

Jewellery Market, Suppliers & Retailers

Local Players International Players

Players are divided into two categories:1. Local Retailers2. Local Manufacturers

Local Retailers:• Exist in big numbers• Mainly Saudi nationals selling local jewellery • Concentrated within a specialized area of

each city • Several shops offer verbal valuation services

to the public

Local Manufacturers:• Produce under their own brand• Use mainly Saudi raw materials in the

production process (Saudi gold)• Require grading and valuation services

Players are usually internationally recognized brandsthat operate/sell in the Kingdom:

• Tend to import their entire inventory from Europe, UK, KSA, India, and China

• Upon import, samples of items could be tested for quality, and price validity

• Tend to have a distributor in KSA • Several brands operate under a franchise

system• International brands tend to open in high-

end areas (city malls, luxury centers ..etc.)

Uniqueness:• Branded items tend to be internationally

certified• Prices of international items are independent

of the place of selling

TOPAZ Factory

Al-Khamis jewellery

Over 4000 retail shops are spread across KSA, in particular in Makkah (30%) & Riyadh (25%). While most renowned international brands are present in the market, the majority are small local shops

45

Key Laboratory Stakeholder ProfileSGL: Solitaire Gemological Laboratories (1/2)


Logo

Company Name: Solitaire Gemological Laboratories (SGL)

Home Location: London, United Kingdom / India

Global Presence: Saudi Arabia, UAE, India, USA

Saudi Presence: SGL Jeddah, SGL Riyadh

Solitaire Gem Labs (SGL) is an independent international laboratory that provides professional gemstone identification and grading services to the gems & jewellery industry worldwide through its 16 centres in UK, USA, UAE, KSA and India.

Services Provided in the Saudi Market:

• Diamond Report

• Diamond Jewellery Report

• Diamond Sealing

• Lab-grown Diamond Screening (HPHT)

Other Services Provided in Global Markets:

• Gemology Education Courses:• Diamond Grading Professional/Precious Gemstone Pro• Qualified Diamond Grader• Qualified Jewellery Specialist

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Key Laboratory Stakeholder ProfileSGL: Solitaire Gemological Laboratories (2/2)


• Solitaire Gem Labs (SGL) first entered the Saudi market in 2015 opening its 12th

laboratory globally

• It previously had 9 locations in India as well as a presence in the UAE and the UK

• SGL considers itself the first international gem lab to have ventured in to the Saudi market to offer diamond, gemstone and set jewellery certification

• The target market for SGL’s services in Saudi is retailers and local manufacturers

• SGL is accredited by the Saudi Arabian Ministry of Commerce and Industry and runs satellite labs at the customs of Riyadh, Jeddah and Dammam airports

• One of SGL’s global unique selling points is that it will issue certificates for HPHT diamonds, whereas competing laboratories will not

HPHT Diamonds – High Pressure High Temperature:

• “It’s a permanent treatment. As a consumer if you bought it, you will not see the diamond change its clarity or colour after two decades, so it’s okay to do that.” –Chirag Soni, Co-Founder

• The difference in value between an HPHT diamond and a natural diamond could be up to 35%


Logo

Name: HRD Antwerp

Home Location: Antwerp, Belgium

Global Presence: China, India, UAE, Belgium, Turkey

Saudi Presence: Regional Coordinator, Abdullah Almuhaisen

HRD Antwerp is Europe’s leading authority in diamond certification. A HRD Antwerp grading report represents the hallmark of authentic European quality and provides consumers with confidence and peace of mind when purchasing diamonds or jewellery. It has laboratories in Antwerp (HQ), Mumbai and Istanbul which use the most sophisticated technology and rely on the extensive expertise of in-house research department. HRD Antwerp also develops and commercializes screening, examination and manufacturing equipment for the benefit of the diamond industry and trade around the globe. HRD organizes international courses in various industry disciplines, create tailor-made programmes and offer individual coaching. Next to its diamond labs, HRD Antwerp also has representative offices in Spain, Italy, Israel, Dubai, Hong Kong, Shanghai and Surat.

Services Provided in the Saudi Market:

• Diamond Grading Courses

Other Services Provided in Global Markets:

• Laboratory Services

• Grading/Certification

• Equipment

Key Educator Stakeholder ProfileHRD Antwerp (1/2)


Key Educator Stakeholder ProfileHRD Antwerp (2/2)

• In December 2018, Stargems in the UAE signed an MoU with HRD Antwerp to establish a diamond grading laboratory in Dubai

• "We are delighted to be setting up our first diamond jewellery grading lab in the Middle East. Transparency and authenticity form the bedrock of our work…We look forward to beginning our partnership and introducing a new standard to the industry.” – Michael Janssens, CEO

• The majority of its Middle East outreach and education programmes are coordination from its laboratory in Istanbul – including its Saudi education courses

• HRD Antwerp is running 2019 Diamond Grading Certification courses in Riyadh in February and March, each course lasts 3 weeks; the first HRD Antwerp course in Riyadh was in March 2018

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Global EventsCalendar & Profiles

50

AMERICAS12 Events

EAST ASIA26 Events

EUROPE13 Events

MIDDLE EAST/SOUTH ASIA9 Events

Global Events OverviewGlobal Events Mapped

...43% of these are in East Asia, due to interest and demand in the luxury industries.

19%21%

17%43%

There are 63 significant global jewellery and gemstones events…

Key insights for TAQEEM:• 62% of these events take place in the first half of the year, the most popular time for jewellery

conferences and expos• UBM and Reed are the two biggest global jewellery exhibition organizers – combined, they produce

23 jewellery and gemstone specific conferences/fairs each year


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Global Events OverviewLaboratories & Education Event Partners Overview

Key insights for TAQEEM:• Large-scale and prestigious global events have a variety of industry partners supporting them• There are several prominent laboratories and education partners that have a high-level of support,

and provide trust and credibility, for various events globally• Unlike events in other parts of the world, events in the Middle East events have an especially strong

relationship with GJEPC in India as well as the GIA and IGI

Established in 1931, GIA is one of the world’s foremost authorities on diamonds, coloured stones, and pearls. A public benefit, non-profit institute, GIA is the leading source of knowledge, standards, and education in gems and jewellery.

In the 1940s, GIA established the “4Cs” and the International Diamond Grading System™ – to this day, the worldwide standard for evaluating diamond quality.

Students around the globe turn to GIA for the knowledge, skills, and credentials through its global education programmes.

IGI is the world's largest independent gem certification and appraisal institute for diamonds, coloured gemstones and jewellery.

It operates laboratories & offices in Antwerp, New York, Hong Kong, Mumbai, Bangkok, Tokyo, Dubai, Tel Aviv, Toronto, Los Angeles, Kolkata, New Delhi, Thrissur, Jaipur, Surat, Chennai, Ahmedabad and Hyderabad.

The IGI School of Gemology has locations in Antwerp, Mumbai, Delhi, Hyderabad, Surat, Ahmedabad, Chennai, Dubai, Shanghai, Rome, Ascoli Piceno, Trecastagni, Cavalese, Marcianise.

GJEPC was set up by the Ministry of Commerce in 1966. Today it represents almost 6,000 exporters in the sector. A crucial aspect of the GJEPC’s mission is to upgrade, upskill and generally improve the industry’s standards and products.

The Council has set up various institutes including the Indian Institute of Gems & Jewellery (IIGJ) imparting international quality training courses.

It controls the Gemmological Institute of India (GII), Gem Testing Laboratory, Jaipur and the Indian Gemmological Institute, New Delhi and Indian Diamond Institute in Surat, undertake research, training and certification activities.

Gemological Institute of America- USA

International Gemological Institute- Belgium

Gem Jewellery Export Promotion Council - India


Key events partner with credible global education partners to promote regulatory standards; there are 3 prominent partners, though others such as HRD Antwerp do participate in some:

52

Global Events Overview2019 Global Events Calendar

January11-14 JanuaryMalaysia International Jewellery Fair, Malaysia

18-23 JanuaryVincenzaro January, Italy

18-23 JanuaryPalakiss Winter, Italy

19-21 JanuaryJIS January Show, Miami, USA

23-26 JanuaryInternational Jewellery Tokyo, Japan

28-30 JanuaryBrilliAnt Antwerp Diamond Trade Fair, Belgium

21-4 January/FebruaryJUNWEX, St Petersburg, Russia

February3-7 FebruaryJewellery & Watch London, UK

5-10 FebruaryAGTA GemFair, Tuscon, USA

6-9 FebruaryJCK, Tuscon, USA

20-24 FebruaryBangkok Gems & Jewellery Fair, Thailand

22-25 FebruaryInhorgenta, Munich, Germany

26-2 February/MarchHK International Diamond & Gems Show, Hong Kong

28-4 February/MarchHK International JewelleryShow, Hong Kong

March8-10 MarchChennai Jewellery & Gem Fair, India

10-12 MarchJA New York Spring, NY, USA

15-17 MarchJIS March Show, Miami, USA

21-24 MarchIstanbu jewellery Show, Turkey

21-26 MarchBaselworld, Switzerland

20-23 MarchInternational Fair of Jewellery & Gemstones, Poland

Events in bold are Key Events and profiled individually in the following slidesSource: Solidiance Research and Analysis

53

April2-6 AprilMidEast Watch & Jewellery Show, Sharjah, UAE

4-7 AprilJakarta International Jewellery Fair, Indonesia

6-8 AprilKolkata Jewellery & Gem Fair, India

11-14 AprilBeijing International Jewellery Fair, China

19-22 AprilChengdu International Jewellery Fair, China

19-22 AprilChina International Gold, jewellery and Gem Fair

25-28 AprilBaimu International Jewellery Fair, Nanjing, China

May3-6 MayBaimu International Jewellery Fair, Shanghai, China

5-8 MayOroarezzo International jewellery Exhibition, Italy

8-12 MayJewellery Shanghai, China

10-12 MayPalakiss Spring, Italy

16-18 MayInternational Jewellery, Kobe, Japan

16-20 MayIJV, Vietnam

27-30 MayGLDA Las Vegas, USA

30-3 May/JuneAGTA GemFair, Las Vegas, USA

31-3 May/JuneJCK Las Vegas, USA

20-23 JuneHong Kong Jewellery & Gem Fair

14-16 JuneHyderabad Jewellery, Pearl & Gem Fair, India

30-3 May/JuneJIS Exchange, Las Vegas, USA

June



54

July18-21 JulySingapore International Jewellery Expo

26-29 JulyBaimu International Jewellery Exhbiition, Nanjing

August2-5 AugustMalaysia International Jewellery Fair

9-13 AugustIIJS, Mumbai, India

11-14 AugustJA New York

24-26 AugustInternational Jewellery & Watch Fair, Sydney, Australia

28-30 AugustJapan Jewellery Fair, Tokyo, Japan

1-3 SeptemberInternational Jewellery London, UK

3-7 SeptemberHong Kong Watch & Clock Fair

7-11 SeptemberPalakiss Summer, Italy

7-11 SeptemberVincenzaro Summer, Italy

September16-20 SeptemberSeptember Hong Kong Jewellery & Gem Fair

28-30 SeptemberDelhi Jewellery & Gem Fair, India

October4-7 OctoberJIS October, Miami, USA

10-13 OctoberIstanbul Jewellery Show October, Turkey

10-13 OctoberShanghai World Jewellery Expo, China


23-26 AugustCambodia International Gems & Jewellery Fair


55

26-30 OctoberInternational Jewellery & Watch Show, Abu Dhabi, UAE

27-29 OctoberJA New York Fall, USA

November13-16 NovemberVOD Dubai International Jewellery Show, UAE

15-18 NovemberTaiwan Jewellery & Gem Fair

23-25 OctoberInternational jewellery Tokyo Autumn, Japan


19-23 NovemberJewellery Arabia, Bahrain

28-1 November/DecemberChina International Gold Jewellery & Gem Fair, Shanghai

December21-23 DecemberMumbai Jewellery & Gem Fair, India


56

AMERICASJIS ExchangeJA New YorkJCK Las Vegas

EAST ASIAHong Kong Jewellery & Gem Fair – Jun/SepJMA Hong Kong

EUROPEBaselworldInhorgenta MunichVicenzaoroInternational Jewellery London

MIDDLE EAST/SOUTH ASIAVOD DubaiMidEast Watch & Jewellery ShowJewellery & Watch Show Abu DhabiJewellery ArabiaIstanbul jewellery ShowIndia International Jewellery Show

Key Events OverviewKey Events Mapped

Key insights for TAQEEM:• The most significant global events, ‘key events’, attract a large amount of attendees from all over

the world as well as premium sponsors and the most prestigious regulatory and education partners• Whilst many events on the global calendar are hosted in East Asia, many are regional trade shows

very few have the prestige of events in Europe and the Middle East

The following can be considered ‘key events’due to size and prestige:


57

Logo

Event Name: Baselworld

Location: Basel, Switzerland

Dates: 21-26 March 2019

Organizer: Baselworld, MCH Swiss Exhibition

Baselworld is the world's foremost show for watches, jewellery, precious stones and related industries. Baselworld is the exclusive platform on which the major watch and jewellery brands present the year’s innovations to an eagerly curious international audience.

No. of Exhibitors: 650

Type of Exhibitors: Manufacturers

No. of Attendees: 100,000 visitors

Type of Attendees: Trade & journalists

Key Sponsors/Supporters

Laboratories & Education Partners

N/A

Key Event ProfileBaselworld


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Logo

Event Name: Inhorgenta Munich

Location: Munich, Germany

Dates: 22-25 February 2019

Organizer: Messe Muenchen

INHORGENTA MUNICH is considered a major international jewellery and watch event by participants from all around the world (around 70 countries) who come to engage with the European market.

No. of Exhibitors: 1,026

Type of Exhibitors: International trade

No. of Attendees: 27,000

Type of Attendees: Trade



Key Event ProfileInhorgenta Munich


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Logo

Event Name: Vicenzaoro

Location: Vicenza, Italy

Dates: January & September Editions, 2019

Organizer: Italian Exhibition Group

Vicenzaoro is an international network of trade events considered as a primary access route to the European markets, the Russian-speaking countries and the Middle East. The organizers showcase two Vicenzaoro branded events a year and curate global and regional events such as VOD Dubai. The January event is considered the international event of reference for the gold and jewellery world that inaugurates the calendar of international trade shows.


Type of Exhibitors: International trade

No. of Attendees: 35,000 (per edition)

Type of Attendees: Trade



N/A

Key Event ProfileVincenzaoro


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Logo

Event Name: International Jewellery London

Location: London, United Kingdom

Dates: 1-3 September 2019

Organizer: Reed Exhibitions

Established in London in the 1950s, International Jewellery London (IJL) enjoys a heritage of showcasing the best of luxury materials, design and craftsmanship, and is the pre-eminent annual destination for the best of British fine jewellery, as well as leading brands from around the globe.


Type of Exhibitors: Manufacturers & service providers


Type of Attendees: International trade



Key Event ProfileInternational Jewellery London


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Event Name: VOD Dubai

Location: Geneva, Switzerland

Dates: 13-16 November 2019

Organizer: Italian Exhibition Group and Dubai World Trade Centre

The Salon International De La Haute Horlogerie(SIHH) is one of the most important events in the watchmaking calendar. It is an exclusive event with only 35 exhibitors but a huge footfall.


Type of Exhibitors: Swiss watch brands





Key Event ProfileVOD Dubai


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Event Name: Jewellery Salon

Location: Jeddah/Riyadh, Saudi Arabia

Dates: 8-18 April 2019

Organizer: Sunaidi Expo & Conferences

JS is a Jewellery exhibition in Saudi Arabia that aims to reinvent the landscape of KSA’s jewellery industry by uniting reputed international and local designers on a single platform. The event aims to showcase the luxurious and well-crafted ornaments to an exclusive clientele which represents high-profile personalities and royalty.


Type of Exhibitors: Luxury brands


Type of Attendees: Elite clientele



Key Event ProfileJewellery Salon


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Event Name: Middle East Watch & Jewellery Show

Location: Sharjah, United Arab Emirates

Dates: 2-6 April 2019

Organizer: Expo Centre Sharjah

Started in 1993 and now in its 46th edition, it is a bi-annual exhibition showcasing the latest design and trends in watches, jewellery, gold, precious stones & diamonds.


Type of Exhibitors: Metals, stones, trade





Key Event ProfileMiddle East Watch & Jewellery Show


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Event Name: Jewellery & Watch Show Abu Dhabi

Location: Abu Dhabi, United Arab Emirates

Dates: 26-30 October 2019

Organizer: Expo Centre Sharjah

Jewellery & Watch Show Abu Dhabi (JWS) is an annual B2C event attracting hundreds of international and local independent brands, designers and retailers from the jewellery and watch industry seeking exclusive access to thousands of the region’s most sophisticated buyers.







Key Event ProfileWatch & Jewellery Show Abu Dhabi


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Event Name: Jewellery Arabia

Location: Bahrain

Dates: 19-23 November 2019

Organizer: UBM AEM/Informa

Since its inception in 1992, it has provided international jewellery houses with direct access to trade buyers and private collectors from throughout this important economic sector – the Middle East.






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Key Event ProfileJewellery Arabia


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Event Name: Istanbul Jewelry Show

Location: Istanbul, Turkey


Organizer: UBM – HK Jewellery & Gem Fair

Created by experienced organizers uninterrupted for 33 years, Istanbul jewellery Show, offers a unique network and business opportunities to jewellery professionals from Eastern Europe to Near Asia, Russia to North Africa, from CIS countries to Middle East as a leading fair in jewellery industry. Turkey is one of global jewellery leaders ranking among the 5 top countries, both in gold jewellery production and consumption as well as import and export.







Key Event ProfileIstanbul Jewelry Show


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Event Name: India International Jewellery Show

Location: Mumbai, India

Dates: 9-13 August 2018

Organizer: GJEPC

A "B2B show", which essentially permits only business visitors, Jewellery manufacturers, importers, traders, retailers & students from Gem & Jewellery Institute from India and overseas.






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Key Event ProfileIndia International Jewellery Show


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Event Name: Hong Kong Jewellery & Gem Fair

Location: Hong Kong

Dates: 16-22 September 2018 (also June edition)

Organizer: UBM

The fair occupies more than 135,000 square metres of exhibition space spanning two world-class venues - the AsiaWorld-Expo (AWE) and the Hong Kong Convention & Exhibition Centre (HKCEC). Product displays are according to category and tailored to buyer's purchasing needs. The AWE houses exhibitors of raw materials including diamonds, loose gemstones and pearls, while the HKCEC houses those exhibiting fine finished jewellery, packaging, tools & equipment.







Key Event ProfileHong Kong Jewellery & Gem Fair


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Event Name: JMA Hong Kong

Location: Hong Kong

Dates: 18-1 November/December 2019

Organizer: HKJMA

HKJMA has organized the JMA Hong Kong (JMA Hong Kong International Jewelry Show) since 1995. First held with only dozens of exhibitors at the HKJMA office, the show has expanded into a sizeable international exhibition and well established over the last 20 years. The show serves as a sourcing and an immediate sale platform for buyers to source best valued quality jewellery under one roof.






Key Event ProfileJMA Hong Kong


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Event Name: JIS Exchange / JCK Las Vegas

Location: Las Vegas, USA

Dates: 30-3 May/June 2019

Organizer: Reed

JIS Exchange is a jewellery trade event that brings together the best of at-show delivery from JIS Miami and JCK Las Vegas – two of the largest trade shows in the Western hemisphere – in one convenient location during the popular Las Vegas JewelryWeek. JIS Exchange offers a unique experience providing immediate delivery of finished jewellery at all price points.




Type of Attendees: Retailers & buyers



Key Event ProfileJIS Exchange & JCK Las Vegas (Partnered Events)


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Event Name: JA New York

Location: New York, USA


Organizer: Emerald Exhibitions

JA New York is the premier trade event for high-end jewellery design on the East Coast. Top buyers and jewelers from across the country come to our show in order to buy unique fine jewellery and shop the latest collections from around the world. Discover over 600 of the world’s fine jewellery brands, designers and manufacturers representing every taste, style and price point. We promise you’ll find no other trade show like ours!


Type of Exhibitors: Traders


Type of Attendees: Buyers


Key Event ProfileJA New York


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Interview List

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Interview List(1/3)

No. Company Name Company Type Location Status

1 Al-Fardan Jeweler Riyadh Completed

2 Damas KSA Jeweler Riyadh Completed

3 Platinum Sands Jeweler Riyadh Completed

4 Mouawwad Jeweler Riyadh Completed

5 De Beers Jeweler Riyadh Completed

6 L’Azurde Jeweler Riyadh Completed

7 Ghazali Watches Jeweler Riyadh Completed

8 Al-Daham Jeweler Riyadh Completed

9 SGL – Solitaire Gemmological Laboratories Laboratory Riyadh Completed

10 Freelance Valuer Valuer Riyadh Completed

11 Al-Khamees Jeweler Riyadh Completed

Updated

More calls were placed to provide short answers and precise insights. This includes municipal government bodies and other contacts that have emerged throughout this project. The list above includes only contacts that we conducted full interviews with.

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Interview List(2/3)


12 Faidi Al-Hashidi Valuer Jeddah Completed

13 Saudi Customs Government Riyadh Completed

14 Ali Bin Ali Jeweler Riyadh Completed

15 HRD Antwerp Education Riyadh Completed

16 Piaget Boutique Jeweler Riyadh Completed

17 Malabar Gold & Diamonds Jeweler Riyadh Completed

18 Atlas Jeweler Riyadh Completed

19 Al-Zain Jeweler Riyadh Completed

20 Faidi Al-Hashidi Company Jeweler Jeddah Completed

21 Kooheji Jeweler Riyadh Completed

22 Abdul Samad Watches & jewellery Jeweler Riyadh Completed


Updated

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Interview List(3/3)


23 Lumiere Jeweler Riyadh Completed

24 Maha Jeweler Riyadh Completed

25 Bin Talib Jeweler Riyadh Completed

26 Alfawzan Jeweler Riyadh Completed

27 Ruby Jeweler Riyadh Completed

28 Zaree Jeweler Riyadh Completed

29 Sirmass Jeweler Riyadh Completed

30 Muhaisin Jeweler Riyadh Completed

31 Faisal Al-Khamees Valuer Riyadh Completed

32 Head of Precious Metal & Gemstones National Committee

Government Riyadh Completed

33 Riyadh Municipality Government Riyadh Completed


Updated

precious metals & gemstones - taqeem€¦ · gemstones other 10% 10% 5% 75% 4.55 mn usd (2018)...

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