The London-based Arab daily “Al-Hayat” cites a report by Russian paper “Kommersant” that Lebanese company Horizon Development and Russian diamond giant Alrosa signed an import agreement for diamonds and other precious stones in Moscow two weeks ago. Horizon development is owned by the son of President of the Council of Ministers of Lebanon Rafik al-Hariri.
”Kommersant” reported that the deal is worth $500 million a year. It will enable Horizon Development to compete against DeBeers, which dominates the import and distribution of diamonds in the West.
”Al-Hayat” reports that Lebanese sources in Beirut confirmed that al-Hariri’s son visited Moscow two weeks ago to sign the deal. The sources said the deal would make Lebanon the center of the Arab world’s diamond trade. Until now, Arab jewelers tended to go to Europe to buy diamonds.
The Beirut sources noted the high Arab demand for diamonds, and that Saudi Arabia was the world’s fourth largest consumer of diamonds. The sources said Alrosa produces 52% of the world’s diamonds.
“Kommersant” claims that the agreement will hurt the interests of Israeli diamond merchants, and that in recent years, most Russian uncut diamonds were sent to Israel for polishing and distribution across the world.
Published by Globes [online] - www.globes.co.il - on January 30, 2003