By Amy Toosley

The Gulf region and its emerging gem and jewelry market was the focus of GIA’s GemFest Italy held June 15 in conjunction with VicenzaOro2. The event, titled “The Great Arabian Market: Stability, Growth, Innovation,” was the third in a series of conferences focusing on international markets.

The event’s theme was inspired by a study that named the United Arab Emirates (UAE) as the top-ranking Middle Eastern country in purchases of jewelry and watches. Keynote speakers were Jonathan Chippindale, the Diamond Trading Company’s (DTC) Gulf marketing director, who provided information and statistics about the market, and GIA Italy’s Alessandra Moro, who drew from her 10 years of experience as an Italian manufacturer representative in the Middle East before joining GIA Italy.

“With such an incredibly budding market in the United Arab Emirates, we felt it essential to cover this topic and region,” said Fred Stocco, director of GIA Italy. “The more than 280 attendees were offered an insightful opportunity to explore a very vibrant jewelry market, which today rivals China in both growth and potential.”

Chippindale’s presentation, “Evolution in a Land of Opportunity,” described the region as an up-and-coming market with immeasurable wealth and a tendency to spend. The biggest shift is being seen in the Kingdom of Saudi Arabia, where women want diamonds and men want to gift them more than anywhere else in the world, according to a DTC-commissioned study. And bigger is better for the Saudi woman, Chippindale said.

Saudi Arabian cities are comparable to many European markets, Chippindale explained, and Asia-Arabia represents an increasing share of the world’s diamond purchases, at 14 percent. With an 8 percent growth in the retail sector from 2001 to 2002, the Gulf is the fastest growing “growth” market, placing it high in the 2003 world rankings. The older generation has the bulk of the wealth, with high earners driving the market, while the young generation is being influenced by Western fashion.

Moro said the Italian jewelry industry has lost ground to strong competition from such countries as Lebanon and Turkey, and more recently, the Far East. She offered strategies for Italian manufacturers to reposition themselves and recapture some of their lost market share in the region.

“Innovation, service, and above all the ‘Made in Italy’ brand, will give you a competitive edge,” she said. Moro also focused on cultural sensitivities and detailed how transactions take place in that part of the world.