Dubai: Would you propose with a lab grown diamond?
Lab-grown diamonds are taking Dubai's luxury jewellery market by storm, with experts predicting they could overtake natural diamond sales within five years as consumers opt for identical quality at up to 80 per cent lower costs.
From Elizabeth Taylor's dazzling collection to Audrey Hepburn gazing into Tiffany's windows and Marilyn Monroe singing Diamonds Are a Girl's Best Friend — just imagine if Hollywood's most iconic jewels had been lab-grown, offering the same sparkle at a fraction of the price.
In Dubai's competitive diamond market, retailers are witnessing a dramatic shift in consumer preferences, says Fergus James, owner of a bespoke diamond retailer in Dubai. 'From our experience, if you line up 10 customers who have not purchased a diamond before buying an engagement ring, and then you give them equal neutral information, seven out of 10 will buy a lab-grown diamond over a mined natural one.'
The price differential is the primary driver, he said. 'With three-carat mined diamonds, you're probably looking at around $30,000-$35,000 (Dh110,177-Dh128,540) plus, and, depending on the spec, you can go all the way up to $50,000-$60,000. But with lab-grown diamonds, with the same specification or quality, you are probably looking at about $4,000-$4,500.
Lab-grown diamonds are chemically identical to mined diamonds and certified by the same organisations, such as GIA and IGI, said James. 'It is like an IVF child and a child that was conceived naturally. I mean, obviously, it's a different process. But the point is, you've got two kids at the end, each with their own DNA. With diamonds, a lab-grown diamond artificially created is not a natural product, but chemically, it is classified as a diamond… a diamond that is facially identical.'
James said that two primary methods are used in producing lab diamonds. The first, HPHT (high pressure, high temperature), involves placing a carbon seed in a sophisticated oven under extreme conditions for several weeks. The technique produces a similar effect to that of natural diamonds, when carbon is exposed to intense pressure and heat of up to 1300 ° C, and crystallises over billions of years up to 120km underground.
The second method, CVD (chemical vapour deposition), involves similar processes with additional chemical treatments.
Despite their different origins, both lab-grown and natural diamonds undergo identical cutting and finishing processes, requiring the same level of expert craftsmanship. 'When you get a rough diamond, obviously out of the ground as Mother Nature has delivered it, it could be amazing quality, it could be a perfect shape, it could be a really difficult shape to cut. Like how this cut is predominantly determined by, you know, how nature has formed that natural piece of rough.'
'Once you get to that point where you've got the rough diamond, or the rough natural or the rough piece of lab grown, the same process happens, like they plot how they're going to cut them. Then it's handed over to the cutter, who with the same tools and the same cutting wheel, cuts the lab run, or natural, diamond into shape.'
This commitment to craftsmanship remains consistent regardless of the diamond's origin. 'We don't put any more or less effort into lab or mined diamonds. We put effort into creating really beautiful pieces of jewellery and delivering to the customer what is right for them,' says James.
Dubai's diverse clientele
Contrary to initial expectations, the appeal of lab-grown diamonds crosses all demographic and socioeconomic boundaries. 'I thought it would be like your classic Gen Z-millennial, an eco-warrior who may be short of a bit of cash,' James says. 'But it really isn't... it's not limited to one demographic or another, or even a certain nationality. You could say, fine, people from the UK, for example, could be more open to it (lab diamonds) because they're not as educated as people from Egypt, for example, when it comes to diamonds; it's not as much part of the culture as in Egypt.'
James finds all those rules just don't apply. 'It's like someone ripped up the rulebook and said, 'Anyone from any walk of life, any culture, people just don't care if a diamond is lab made anymore.''
It's like someone ripped up the rulebook and said, 'Anyone from any walk of life, any culture, people just don't care if a diamond is lab made anymore"
Fergus James
Even ultra-wealthy customers are choosing lab-grown diamonds. 'We had a customer who spent three quarters of a million dollars on a bespoke ring. And then the next purchase she made were matching earrings that were lab grown,' said James. 'We've got a group of Saudi ladies who buy lab-grown diamonds. They tell me not to tell their sisters or cousins that they buy lab-grown. They don't care, as long as it looks good.'
Arnaud Fambeau, executive chairman of Dubai-based 2DOT4, has also noted a significant shift in consumer awareness. 'Five years ago, most people didn't even know about lab-grown diamonds. Today, consumers are asking for them,' he says. 'It's not about age or wealth anymore. Everyone loves diamonds. And here in Dubai, where consumption of luxury jewellery is higher than in Europe, the demand for lab-grown diamonds is booming. GCC populations are younger than in Europe, and lab-grown diamonds clearly appeal to younger buyers. They're beautiful, reasonably priced, and have a much smaller environmental impact.'
But it's not just about affordability or ethics—it's about luxury. Lab-grown diamonds are real diamonds, identical in chemical composition to their mined counterparts. Fambeau says that consumers should not view them as an inferior product: 'A diamond is a diamond. The only difference is how it's made.'
The significant price difference between lab-grown and mined diamonds is reshaping purchasing decisions and having a significant impact on the wider market, with lab-grown diamonds costing up to 80 per cent less than traditional mined diamonds, says Fambeau.
The ability to purchase larger, higher-quality diamonds at the same price point as a smaller mined diamond is a game-changer for Dubai's price-conscious luxury shoppers, he said. 'For the same budget, you can have a two-carat lab-grown diamond instead of a one-carat mined diamond. Why choose something smaller when you can have something bigger — something that makes you feel proud every time you wear it?'
Yet, this affordability doesn't come at the expense of luxury. In fact, lab-grown diamonds often surpass mined diamonds in quality, he said.
It would appear the price of luxury is becoming more accessible than ever, with the perfect diamond ring now tantalisingly close without a compromise in quality.
Fambeau says only the top one per cent of mined diamonds are high-in-resaleable value and of notable quality. 'Yet the average quality of lab-grown diamonds is much higher than that of mined diamonds because we can control the process from start to finish.'
While lab-grown diamonds typically cost significantly less than mined diamonds, this hasn't diminished their luxury appeal. Instead, it's allowed consumers to focus on quality and size. 'The sweet spot in lab-grown is $3,200, which is not bad at all. It's a luxury product,' says Fambeau.
James says that customers are increasingly redirecting their savings: 'People are even coming in like, I want a natural (diamond) that's my budget, whatever it is. Now they're going out spending Dh25,000 or Dh30,000 instead on a lab-grown diamond and then buying themselves a watch or a bag with whatever they have saved.'
Spotting a good quality lab-grown diamond
For the untrained eye, it can be challenging to differentiate between a good lab-grown diamond and an exceptional one. Fambeau offers guidance for shoppers looking for the best quality, saying firstly, it has to shine. 'You should see all the hues of light — red, blue, green — when you move the diamond. That's what I call the life inside.'
It should also be certified as a Triple Excellent Cut. 'A high-quality diamond will have a cut certified as 'excellent' in symmetry, polish, and proportion.' Most importantly, he said, consumers should be looking for the absence of 'milkiness. 'Some lab-grown diamonds can have a milky or cloudy appearance, which diminishes their brilliance. Milkiness isn't listed in certification reports, so you have to rely on the sparkle you see.'
The US market already shows lab-grown diamonds accounting for 60-70 per cent of diamond sales by volume, says Fambeau, who predicts similar trends in the UAE within five years. James notes that his business saw an immediate shift when they began offering lab-grown options: 'We flipped about from maybe five per cent lab grown as a percentage of our total volume, probably to like 80 per cent in a month.'
Resale value
While lab-grown diamonds typically have lower resale value, James argues this should be viewed in context: 'You definitely lose more money on a lab-grown for sure. And you know, with natural diamonds, people tend to spend more, so if they tend to spend more, the overall loss is probably greater on a natural than it would be on a lab.'
Dubai's position as a global diamond trading centre provides unique advantages. Fambeau highlights the emirate's infrastructure through DMCC, competitive electricity costs, and ability to attract top talent as key factors in its success.
'The attractiveness of the lifestyle in Dubai... makes the place extremely attractive for top-end engineers and people like that,' says Fambeau.
Environmental consciousness adds another dimension to the luxury appeal. 2DOT4's advanced technology consumes less energy than traditional mining, with water consumption reduced by 99.99 per cent. This sustainability aspect particularly resonates with younger luxury consumers.
Consumer appeal
'I've always wanted to buy myself a diamond ring but could never justify the price point,' says Tala Michel Issa, 29, a Dubai resident who recently made her dream purchase possible through lab-grown diamonds. 'I chose lab-grown diamonds because they're a lot cheaper,' she explains. Her decision came after thorough market research. 'I wanted to understand why they were cheaper and it is basically the same as a mined diamond, the only difference is that it is created in a lab under the same circumstances.'
The choice proved financially rewarding. 'I bought a lab-grown diamond ring that would have cost me more than double the price if I had settled for a mined diamond instead,' Issa reveals, adding that these laboratory-created stones 'are clearer and more crisply cut than regular diamonds'.
For Issa, the growing availability of lab-grown diamonds represents a significant shift in the jewellery market. 'With lab-grown diamonds being more available, it sort of democratises peoples' access to beautiful jewellery,' she says.
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