ISTANBUL, March 10 – The ongoing conflict has severely impacted Dubai, one of the world’s leading gold trading centers, creating a significant opportunity for Istanbul to emerge as a new global hub for the jewelry sector. Ayhan Güner, Vice Chairman of the Jewelry Exporters’ Association, emphasized Istanbul’s strong production infrastructure and financial mechanisms as key advantages to fill this void.
Dubai’s Trade Stalls, Istanbul Steps Up
The war has caused a substantial disruption in Dubai’s gold trade, leading to a near cessation of business activities. This situation has prompted discussions within the jewelry industry about finding an alternative global center. Güner highlighted that Dubai currently handles 20% of the world’s gold trade, with African countries bringing their gold there to integrate into the global system.
“Today, Dubai is a center where 20% of the world’s gold trade takes place. African countries bring their gold here and integrate it into the global system. Istanbul, with both its Gold Exchange and Diamond Exchange, can claim the emerging void,” Güner stated.
Turkey’s Export Performance and Potential
In 2025, Turkey’s jewelry exports reached $7.905 billion. A significant portion, 42.8% or $3.384 billion, was directed to 18 regional countries, demonstrating Turkey’s established presence in the jewelry market. This strong export performance, coupled with Istanbul’s strategic location and existing infrastructure, positions it as a viable candidate for a new global trading hub.
Call for Tax Adjustments to Seize the Opportunity
Güner also addressed the ongoing discussions regarding taxes on diamond imports. He pointed out that the current total tax on imported diamond jewelry in Turkey stands at 47.5%. He warned that introducing a 20% Special Consumption Tax (SCT) on raw diamonds used in production would harm the sector.
To capitalize on Dubai’s current predicament, Güner proposed a model similar to Dubai’s, where individuals can bring gold, conduct trade against invoices, and return to their countries with proper documentation. “People coming from Africa to Dubai bring their gold, conduct trade, and return to their countries with their invoices. This is what Dubai does; why shouldn’t we? Let them come with gold, and let them shop in Turkey against invoices. If such a system is established, not only the jewelry sector but many sectors will benefit, and the Laleli market will also revive. To evaluate this opportunity, we want the SCT regulation to be postponed,” he explained.
Broader Economic Benefits
Implementing such a system would not only benefit the jewelry sector but also have a positive ripple effect on various other industries in Turkey. The revival of markets like Laleli, a historic trading district in Istanbul, is anticipated, bringing broader economic gains. The proposal aims to create a more attractive and competitive trading environment, drawing international gold and jewelry transactions to Istanbul.
Future Outlook
The call for tax adjustments and the establishment of a simplified trading mechanism are crucial steps in positioning Istanbul as a formidable alternative to Dubai. The sector believes that with the right governmental support and policy changes, Istanbul can effectively leverage its existing strengths to become a major player in the global gold and jewelry trade, especially during times of geopolitical instability affecting established hubs.
The Jewelry Exporters’ Association continues to advocate for these changes, emphasizing the urgency of the situation to prevent the loss of this unique opportunity. The outcome of these discussions and potential policy shifts will significantly influence Istanbul’s trajectory as a global trading center in the coming years.
Source: https://www.ekonomigazetesi.com/sektor-haberleri/savas-dubaiyi-kilitledi-mucevher-sektoru-merkez-olarak-istanbulu-onerdi-74528
