This last edition of the AWJ Weekly e-Newsletter Broadcast for 2008, published to coincide with the advent of and the run-up to what generally ought to be the joyous Christmas-New Year season, is overshadowed by the looming doom-and-gloom that is gripping many parts of the world.

Despite the recession beginning to bite, more bad news cascading on and oil prices continuing to plummet, we are convinced more than ever, that the current phenomenon has not, at least yet, depressingly affected Middle East retail markets where there is still a modicum of normality and business-as-usual ardour.

Testimony in evidence of this is clearly contained in this e-Newsletter Broadcast where we continue to report on the opening of new watch and jewellery boutiques, new brands debuting (such as Spanish jeweller Masriera quoted in this newsletter), brands launching new collections in the region, new regional exhibitions announced and indication of strong economic forecasts from trusted think-tanks and sources.

For now though, we can all take heave a collective sigh of relief, and go back to enjoying the holiday season or what is left of the year. We hope you will all do just that!

We look forward to re-connecting with you at the beginning of 2009.

Meanwhile, best wishes for a successful and prosperous New Year ahead.

MPParabia Editorial Team

A rare blue diamond handed down through generations of German Royalty sold for a record-breaking USD $ 24.3 million at a recent auction in London by Christie’s. The Wittelsbach Diamond, a 35.56 carat cushion-shaped gem was snapped by the billionaire diamond dealer Laurence Graff for USD $ 24.3 million including buyer’s premium.

According to a Christie’s spokesperson, the price, nearly double its pre-sale estimate, was the most paid for a diamond auction beating the USD $ 16.5 million commanded by a 100-carat diamond at a Swiss auction in 1995.

A significant majority of people buying diamond jewellery prefer to have their purchase insured against loss and theft irrespective of the value of the purchase, according to a recent survey conducted by International Diamond Laboratories (IDL). The 766 respondents (58 % female) in the survey included GCC nationals, expatriate residents and tourists in different age groups, 57 % of whom bought diamond jewellery priced between USD $ 1,000 to above USD $ 10,000 over the past two months.

“The survey shows there is an overwhelming preference for insurance in the retail diamond market in the UAE,” remarked Peter Meeus, CEO, IDL.

The gems & Jewellery Export Promotion Council (GJEPC) of India has stated, in a press release, that the Government of India has announced a fiscal stimulus package to revive the country’s economy in view of the current global economic turmoil.

Several measures were announced for the gems & jewellery sector that included the extension of the post shipment rupee export credit period from 90 days to 180 days; the pre-shipment export credit period increased from 180 days to 270 days; providing an interest subvention of 2 % up to 31 March 2009 for exports and refund of service tax on foreign agent commissions of up to 10 %.

Damas, one of the largest retailers of its kind in the Middle East by number of stores, said that the number of tourists in its UAE stores began to decline since October 2008, but its full year performance would be unaffected thanks to slightly higher per head spend, according to Tamjid Abdullah, Deputy Managing Director, reports ‘Arabian Business’.

“The first quarter of 2009 is going to be a real indicator for the rest of the year, but we are still very positive within the UAE and the Middle East in general,” remarked Tamjid Abdullah in an interview.

Watch titan Vacheron Constantin recently teamed up with the UAE Ministry of Culture, Youth and Community Development to set up a special timepieces exhibit that featured different brands (including its own) by private collectors for the country on the occasion of its 37^th National Day on2 December 2008. Most of the showcased watches were 1 of 1, the only one of its kind.

The exhibit was first displayed from 29 November to 1 December 2008 in Abu Dhabi and then moved to Dubai from 3 to 5 December. Vacheron Constantin had a special conceptual presentation wherein 14 exclusive watches, including the Quai de L’ile, the Malte Tourbillon Regulator and a 1929 art deco pocket watch, were displayed in exclusively-made showcases, numbering up to 7, where each showcase was a representation of one of 7 Emirates that constitute the UAE.

Close on the heels of winning the award in the ‘Best Ladies Watch’ category by Hublot’s Big Bang Purple Carat at the recent MPParabia-initiated and hosted Premier Middle East Watches, Jewellery & Pens Awards at Jewellery Arabia 2008 in the Kingdom of Bahrain and the conferring of the ‘CEO of the Year 2008’ special recognition to CEO Jean-Claude Biver, the brand has won further honours in Geneva and Paris.

At the 6^th Nuit de l’Horlogerie recently organized by the Magazine Excel in Geneva, the Grand Prix du Public in the Gentlemen’s watch category was awarded to Hublot’s ‘Aero Bang Gold Ceramic’.

Another accolade was also won in Paris when Hublot won the ‘Revue des Montres’ award of the official ‘Ladies Chronograph’ prize to the Big Bang Purple Carat.

Top Italian watchmaker Officine Panerai, in collaboration with local partner Ahmed Seddiqi & Sons, has opened its first boutique in the UAE in one of the world’s biggest shopping malls, The Dubai Mall. “We are looking forward to showcasing the Officine Panerai brand that combines history, tradition and sophisticated craftsmanship to a wider audience in the Middle East,” said Angelo Bonati, the visiting CEO of Officine Panerai.

At its boutique, characterized by an Italian design inspired by the sea, Officine Panerai presents a complete collection of all its famous watches including the iconic Radiomir Tourbillon GMT and the Luminor 1950 Tourbillon.

Girard-Perregaux’s ww.tc 24-hour Shopping was awarded the ‘Ladies’ Watch of the Year 2008’ prize at a recent ceremony in Paris.

The award was presented on the occasion of the 9^th Edition of the ‘Prix Officiel de la Revue des Montres 2008’ organized by ‘Les Editions Jalou’ held at the Museum Jacquemart-Andre located beside the Champs Elysees. The award was received by Stefano Macaluso, Vice President of the company received the award from Stephan Ciejka, President of the Jury.

Swarovski, the world’s largest producer of cut crystal, Enlightened—Swarovski Elements and Cubic Zirconia joined forces to make the set of this year’s jewel-heist movie ‘Flawless’ starring Michael Caine and Demi Moore. ‘Enlightened’ provided ‘Flawless’ with over 1.5 million perfectly cut, fully faceted Cubic Zirconia jewellery stones capable of producing the maximum light dispersion and equal to the lustre of the finest diamonds and nearly 3 tonnes of awe-inspiring genuine topaz chunks used to create the illusion of diamonds in the rough.

Icelink, the watch brand that remains a quintessentially Californian brand at heart, has confirmed that the company has signed an exclusive deal with Santa Claus, who will be its new Brand Ambassador.

Accordingly, Santa Claus will fly back and forth across the skies of the seven continents with the 6Timezone Santa Snow on his wrist. Thanks to its four time zones, he will be able to organize his rounds efficiently and be sure he will never be late. “Entrusting the task of transporting our image to the man who brings such happiness to people all over the world was a natural decision,” said Andy Soyogan, Founder & Creator, Icelink.

Vertu, the producers of some of the most luxurious and high-end mobile phones in the world, has created Vertu Boucheron 150, an exceptional homage to the renowned Parisian Jewellery House Boucheron in celebration of its 150^th anniversary.

The stunning Vertu Boucheron 150 was designed by Frank Nuovo, the brand’s principal designer. “Using the Vertu Signature platform and creating a superb model that breaks all expectations of mobile phone design has resulted in a true piece of sculpture,” said Nuovo, speaking of his new creation. Everyone of the gold components on this exceptional mobile phone has been painstakingly crafted from individual solid gold ingots taking over 1000 man hours to cut to shape, with over 700 man hours of hard polishing to follow and a further 500 hours to hand-build.

Each year, Blancpain makes it a point of honour to conceive and create a limited series of ladies’ timepieces dedicated to love. For the Valentine Day 2009 Edition, Blancpain offers ‘Saint Valentin 2009’, a modern horological interpretation of romance—an exclusive edition of 99 Flyback Chronographs.

The 34mm case is harmoniously in sync with a white mother-of-pearl dial adorned with a precious ruby heart. It houses a Calibre F185 movement that drives the chronograph functions—the hours, minutes and small seconds as well as the date display. The ‘Saint Valentin 2009’ is fitted with a hand-sewn white alligator leather strap complete with a folding clasp.

The Italian Jewellery House of Stefan Hafner has unveiled three glittering new collections. These are the Lunari, Geode and Young Chic offering a stunning ensemble of necklaces, earrings and rings combining white, rose and black gold settings with a blend of precious stones such as white diamonds and black diamonds with rubies, orange sapphires, pink sapphires, amethysts, opal cabochon and citrine cabochon.

The ‘Lunari’ collection is inspired by the moon’s timeless beauty; the ‘Geode’ collection pays ode to the beauty of the geodes—the hollow, spheroidal rocks bearing crystals and other precious or semi-precious stones and the ‘Young Chic’ offers necklaces and rings for young women.

The Swiss watch brand Marvin, first established in 1850, is preparing for a resurgence, its ‘second childhood’, by launching a range of mid-value, precise and robust watches this season. These include mostly watches for men in a mix of round, square and rectangular cases, in steel or PVD-plated pink gold, chronographs and simple watches.

The collections of bracelets watches form men and women have such characteristics as Swiss movements, screwed back-case, facetted hands with superluminova, open case back, genuine leather interchangeable straps and water resistance.

French watchmaker Bernard Richards Manufacture (BRM), renowned for creating the finest motor racing inspired timepieces in the world, introduced the new R 50 skeleton model at Baselworld this year. Now, in homage to the brand’s growing success, BRM has created its first Tourbillon in a 51.5 mm diameter. BRM has engineered the largest tourbillon cage in the world.

BRM has developed a tourbillon that rotates at a rate of 1.5 times per minute for unparalleled precision of movement as opposed to the standard tourbillon rate of 1 rotation per minute. BRM will be marketed in the UAE by Al Tayer Insignia.

The Spanish Jewellery House of Bagues-Masriera, founded in 1839, has unveiled two of its grand and epic collections—the Masriera Deco and Masriera Art Nouveau, in a splendid tribute to the spirit of its legendary founder and maestro Luis Masriera. Masriera’s collections are available at Damas boutiques in the GCC.

Crafted in the rich glow of 18-carat yellow gold and encrusted with brilliant cut diamonds, rubies and aquamarines, these majestic array of necklaces, pendant chains, earrings, rings and brooches come alive with the brilliant hues of durable fire enamel handmade from start to finish. “Masriera’s jewels are characterized by a meticulous eye for detail, impeccable craftsmanship and use of the finest precious materials like gold and diamonds,” noted Oriol Oliveras, Managing Director, Bagues-Masriera.

Joaillerie Saudi Arabia 2009 will be staged in the capital Riyadh, from 3 to 6 May the capital of Saudi Arabia, a market that accounts for 70 percent of the region’s diamond consumption. The exhibition will take place at the brand new, state-of-the-art Riyadh International Exhibition Centre, the capital’s most prestigious show venue, scheduled for inauguration later this year.

Reduced import tariffs from 12 % to 5 % represents yet another incentive for international jewellery and watch manufacturers to explore new business opportunities in the oil-rich Kingdom. The total gold and jewellery market in the Kingdom is estimated at USD $ 7.2 billion.

The event is organized by Riyadh Exhibitions Company, a proven and professional exhibition organizer in Saudi Arabia.

The 2^nd International Gem & Jewellery Conference (GIT 2008) which was originally to be held from 11 to 14 December 2008 in the Thai capital Bangkok and subsequently as a post-conference excursion to the Western, sapphire-rich province of Kanchanaburi has been postponed and will now be held from 9 to 12 March 2009, according to a recent press release. The Bangkok event will include technical sessions and will be held at the Bangkok Convention Centre (Central World) in the capital’s Patumwan district.

The Kingdom of Thailand is a major source for coloured stones for several decades and is renowned for the skills and craftsmanship of the gemstones cutters and jewellery designers. The Conference will deliberate and analyze several issues of interest to the industry and will include a keynote address by Khun Vichai Assarasakorn, President, Thai Gems & Jewellery Traders Association (TGJTA). The Conference is organized by the Gem & Jewellery Institute of Thailand (GIT, established in 1998). The Chair of the 25-member International Organizing Committee for GIT 2008 is Wilawan Atichat, Director, GIT.

Ralph Lauren Watch & Jewellery Co., a brand jointly owned by Richemont and Polo Ralph Lauren, has announced the appointment of Guy Chatillon as its CEO effective 8 December 2008. Mr. Chatillon joins the company from Piaget where he managed a range of professional portfolios for 18 years.

“We are happy to welcome Guy Chatillon to the Ralph Lauren Watch & Jewellery Company and his extensive experience in this sector makes him uniquely qualified to lead the re-launch of our Ralph Lauren watch line,” said Ralph Lauren, CEO, Polo Ralph Lauren. Callum Barton, who assumed the CEO interim role for the inception, will continue to play a strategic role in his capacity as Chairman of the company.