De Beers Returns to Israel After Nine-Year Hiatus

De Beers, one of the world's largest diamond companies, is resuming operations in Israel after a nine-year absence. Starting tomorrow, Tuesday, until Thursday, the company's diamonds will be presented to buyers at the Israel Diamond Exchange in Ramat Gan. This marks a significant return for the global giant, which ceased its tender activities in Israel in 2015.

The resumption of De Beers' tenders in Israel follows a recent historic tax agreement between the Israel Diamond Exchange and the Tax Authority, set to be implemented in 2027-2028. This new agreement establishes a fixed tax rate based on turnover for diamond traders, offering predictability and potentially lower tax burdens compared to previous regulations. It also eliminates the minimum income floor, which previously required traders to report higher incomes even with limited activity.

This tax reform positions Israel more competitively against global diamond trading hubs. For instance, the effective taxable income for diamond traders in Belgium is 2.1% of turnover, significantly higher than the new Israeli rate. Furthermore, gemstones and jewelry enter Israel duty-free, unlike in Dubai where a 5% tariff applies, and registering a foreign company in Israel is a streamlined process compared to Dubai's potentially year-long procedure.

The return of De Beers and the new tax agreement are the result of extensive efforts by the Israel Diamond Exchange management, led by its president, and supported by figures like Roey Fisher, Head of the Foreign Trade Administration at the Ministry of Economy. These initiatives aim to revitalize Israel's diamond sector, which has faced international challenges, including competition from lab-grown diamonds.

De Beers itself has experienced a significant drop in rough diamond prices, with the average price falling by approximately 32% in the first half of 2026 compared to the previous year. The company is owned by the global mining firm Anglo American and the government of Botswana, though a potential sale of Anglo American's stake is still pending. In Israel, the diamond trade has also seen a decline in both polished and rough diamond volumes in the first half of 2026 compared to 2025, with exports and imports showing decreases across the board.