New President Aims to Revitalize Industry
Translated & summarized from Ynet by baba
Exports have plummeted to a third of their value from a decade ago, facing competition from lab-grown diamonds and tax disadvantages. Schnitzer aims to restore the natural diamond's prestige, remove U.S. tariffs, and improve the industry's public image. A new tax agreement is expected to boost Israel's competitiveness against global diamond hubs.
The story in 4 lines · by baba
- Diamond exports hit historic low, one-third of value from a decade ago.
- Schnitzer to combat competition from lab-grown diamonds and boost natural diamond appeal.
- Removal of U.S. tariffs on Israeli diamonds is a key priority for Schnitzer.
- New tax agreement aims to improve Israel's competitiveness against Dubai and India.
His grandfather, Moshe Schnitzer, was a founder and former president, and his father, Shmuel Schnitzer, served as president until 2015 and is now honorary president. The family's company is one of the largest and oldest on the exchange and has also launched a jewelry brand, "Schnitzer." Schnitzer's cousin is international diamantaire Dan Gertler.
The election occurs during a challenging period for the Israeli diamond industry, with diamond exports at an all-time low, one-third of what they were a decade ago. Global diamond prices and demand have fallen, partly due to competition from lab-grown diamonds. Schnitzer believes the natural diamond's status can be restored, emphasizing its unique qualities and ancient origins compared to lab-grown alternatives. He stated that the exchange and the International Diamond Federation recognize the need for a coordinated effort to promote the value and uniqueness of natural diamonds.
Schnitzer affirmed the exchange's policy against trading lab-grown diamonds on its premises, citing that luxury brands like Tiffany and Cartier exclusively market natural diamonds. He anticipates a strong two years for the industry, focusing on promoting Israel as a leading diamond trading center. A key priority is the removal of the 12.5% U.S. tariff on Israeli diamonds, which impacts 60% of Israel's exports. He also highlighted the importance of a tax arrangement with the Israel Tax Authority to enhance Israel's competitiveness against hubs like Dubai, India, and Belgium.
Addressing the industry's past image, Schnitzer aims to improve the perception of diamantaires, who he describes as a productive working population. He plans media outreach to foster trust and public recognition of the industry's regulated and collaborative nature, involving diverse segments of Israeli society. The industry's export figures have reached historic lows, with cumulative exports from January to June 2026 totaling only $2.4 billion, a stark contrast to the $7 billion peak in 2015. Total trade volume has also plummeted. The Supervisor of Diamonds, Natalie Gutman, described the situation as unprecedented, attributing the decline to the global industry crisis, the rise of Dubai as a tax-advantaged trading center, and the influx of lower-priced lab-grown diamonds.
Outgoing president described the situation as "catastrophic" and warned about countries like Belgium exporting to the U.S. without tariffs while Israel faces a 12.5% duty. He also noted that companies have relocated to Dubai due to tax incentives.