However, in the years following EU integration —- from the terrorist attacks of 9/11 to the global economic crisis that hit in 2008 — Antwerp has had to constantly reinvent itself to stay competitive.

The laissez faire attitude of the government that initially attracted the business here gradually disappeared, as did flexibility on taxes, customs processes and transfer of funds. The Indian diamond community began to get politically involved to make sure they had an adequate legal and fiscal framework.

Right now, some 500 Indian families involved in the diamond trade consider Antwerp home, and Indian are responsible for 60% of the diamond trade world- wide. In the last few years, government raids in the office of many diamantaires threatened the functioning of the business and raised questions as to whether it could even continue to function in Antwerp.

Marc Huybrechts, the Honorary Consul General of the Republic of India in Antwerp, claims that traders have been "harassed" by police officers during raids last year when diamond stocks were seized. In one well-publicised case, a diamantaire died during a search. "They went too far and even caused a bankruptcy to a diamond trading company," says Huybrechts. "If you chase the traders away, you are doing harm to Antwerp."

This scandal, coupled with the rise of the industry in Dubai, where they are offered a 30-year tax holiday and state of the art infrastructure, has put Antwerp in a precarious position.

But many traders still believe in staying right here. "Nothing will replace Antwerp," says Aarjav Mehta of Aarjav diamonds. While he admits that it's a fast-growing industry in the east, he says that "during the recession, Antwerp was injured the least of all the world diamond centres because of the strong base of capital we have here."

Mehta also sees advantages in being based in Europe. "The success ratio in Antwerp is much better than New York City. We are back to 70 to 80% of 2008 levels. It is easy to do business here because every- thing is official and all communities oper- ate in an equal, neutral manner."

While global diamond demand is still generated by the US and Europe, the AWDC has acknowledged that the natural progression of the business is headed eastward. "With the far east, we are facing the reality of an economy that is not affected by crisis, while the traditional markets of the US, Japan and Europe are stagnating," says AWDC CEO Freddy Hanard. Antwerp is relentlessly putting efforts in strengthening ties with the east, especially China and Hong Kong, as they are Antwerp's first export destination for polished diamonds.

To that end, AWDC has formed a part- nership with the Shanghai Diamond Exchange to develop and support China's diamond infrastructure.

Security threats

But perhaps the most serious threat to the diamond community in Antwerp is the rising tide of violent robberies. What were once straight robberies in many Indian residences have turned into high- profile tiger kidnappings by professionally organised crime gangs.

In the last few months, there have been repeated incidents of both robberies and tiger kidnappings. A community that moved here in the early 1970s when Antwerp was a safe haven is paralysed with fear as it copes with changing times.

"Not one criminal has been caught yet. We are now constantly looking over our shoulders," says Mehta.

The AWDC is in regular communication with the Antwerp and the federal police to help inform and educate the community. Despite presentations on how to better enforce security at home and at work and to identify criminals, the sector seems to lack faith in the measures the police are taking.

"We need CCTV cameras like they have in London to track criminals," states Chetan Choksi of Diminco, "and the whole diamond market should be cordoned off like they have done in Tel Aviv if they want the sector to continue to thrive."

Peter Muyshondt is the commissioner of the branch of Antwerp police in charge of security in the diamond sector. "At this time, there is no real structured diamond sector," he admits. "We have three streets with lots of different players, and some buildings are more secure than others."

Muyshondt is aiming towards a more consistent structure through security parameters, but he says that it is easier to work with an organised sector like a bank, where everything is clearly defined. "This is not the case with the diamond zone," he says.

The Antwerp police have developed an information and data collection procedure, accessible on the AWDC website, for people to directly communicate suspicious activity to the police. At this point, it has received no response from the business community, and crimes are still rampant.

"People need to give us the benefit of the doubt," says Muyshondt, adding that an increase in the level of vigilance and communication with the police is essential to securing the sector. "It's not possible to have a police officer outside every home and on every street corner. Optimum security will only be achieved if players in the market re-evaluate their ways of doing business and stop bring- ing high value goods into their homes. Otherwise we are just waiting for the next tiger kidnapping."

www.awdc.be

1 September
The Indian community opens its new Jain Temple and meditation centre in Antwerp