Diamond exchanges of Dubai and Israel signed an agreement of collaboration on Thursday that will see the establishment of reciprocal offices in each other's country.

The Israel Diamond Exchange will open an office in Dubai and the Dubai Diamond Exchange will open an office near the city of Tel Aviv.

The agreement comes at a time when the global diamond industry is looking to rebound from the effect of the coronavirus pandemic.

President of the Israel Diamond Exchange Yoram Dvash called the agreement “a dream come true” that opens a “new era of trade relations.”

Chairman of the Dubai Multi Commodities Center (DMCC) and Chairman of Dubai’s Diamond Exchange Ahmed Bin Sulayem said that the collaboration was “expected at some point,” but not in 2020.

“No one would have predicted it for 2020 given all the challenges that are happening around the world, especially to the diamond industry itself,” said Sulayem in video remarks.

“But it’s an opportunity that can’t be missed,” Sulaman said, adding that he visited Israel on an unofficial visit four years ago, where he met Dvash and others involved in Israel’s Diamond Exchange.

Diamonds are displayed before being set at a gold jewellery factory for the company Damas in Dubai July 21, 2008. (Reuters)

“We discussed everything about the diamond industry…we were eager to work together,” he said.

Dvash said that the agreement formalizes a “network of connections and ties between our two industries that have developed behind the scenes over the past 15 years.”

The agreement comes two days after the UAE and Israel signed a historic agreement at the White House to normalize relations.