Diamond Diplomacy: How Israel’s Gem Industry Fuels Its Military Resolve

Tel Aviv: Israeli Prime Minister Benjamin Netanyahu has made it clear that there will be no pause in military operations, rejecting the 21-day ceasefire proposal put forth by the US and France. This decision underscores Israel’s determination to continue its military campaign against Hezbollah, which has seen significant losses in recent days.

Despite its small population of under 10 million, Israel has responded robustly to its adversaries. In the ongoing conflict, the Israeli Defence Forces (IDF) claim to have eliminated 90 percent of Hezbollah’s leadership within just four days. As the country endures assaults from multiple fronts, its resolve remains unshaken, bolstered by a strong economy that continues to thrive even in wartime.

A significant contributor to Israel’s economic stability is its diamond export industry, which serves as a backbone for the national economy. The nation has established itself as a leading player in the global diamond market, with diamond exports accounting for 25 percent of all goods sent abroad. In 2020 alone, Israel exported $7.5 billion worth of diamonds, making it the sixth-largest diamond exporter worldwide.

The Israel Diamond Exchange (IDE), founded in 1937, is one of the largest diamond centres globally, with approximately 3,000 members involved in the manufacture, import, and export of both raw and polished diamonds. This bustling industry not only supports the economy but also provides employment for countless young people in Israel.

The diamond trade’s roots trace back to the medieval era when restrictions limited Jewish participation in various professions, steering many towards this lucrative business. The diamond industry flourished in Israel during the 1930s, led by enterprising immigrants who brought valuable skills from Belgium. By the end of World War II, as traditional European diamond centres fell under German occupation, Israel emerged as a key player in polished diamonds.

Today, Israel stands firm amidst ongoing conflicts, bolstered by a resilient economy and a strategic approach to international trade. As Netanyahu dismisses calls for a ceasefire, it is clear that Israel’s commitment to its military objectives is matched by its economic prowess, particularly in the diamond industry.

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