The National Bank of Fujairah (NBF) has set up a new division focusing on financing manufacturers and traders of rough and polished diamonds.

The business will begin operations in mid-2015 and aims to capitalise on Dubai’s growing importance as a major diamond trading hub.

NBF has hired staff from Antwerp Diamond Bank’s Dubai operations to run the business and it will focus on providing short-term finance to support the shipping of raw diamonds from African and Europe to manufacturers in India and other Asian countries.

The trading of diamonds through Dubai has risen sharply over the past decade. According to the Dubai Diamond Exchange, monitored by the Dubai Multi Commodities Centre (DMCC), the trade was worth about $35bn compared with the less than $5m recorded in 2001.

Dubai’s rising prominence in the market reflects the shift in the global diamond business away from traditional players in Europe to trading hubs in emerging markets.