A Strong Start to 2025 for the Jewelry Industry
The Jewellery Antalya Procurement Delegation, organized for the fifth time this year by the Jewellery Exporters’ Association, has been successfully completed. As the first and only event of its kind in the world organized by Turkey, it brought together more than 1,000 foreign buyers from over 500 international companies with Turkish jewelry firms. Ayhan Güner, Vice Chairman of the Jewellery Exporters’ Association, emphasized that such a comprehensive procurement delegation event, where carefully selected foreign buyers are hosted, is unique to the jewelry sector.
The Jewellery Antalya Procurement Delegation, held at the Rixos Sungate Hotel in Antalya, was attended by more than 1,000 buyers from 512 companies across South America, the Middle East, the Balkans, Russia, Turkic Republics, and European countries. The event, which cost over $1 million, was fully funded by the participating firms. Each buyer was carefully selected and invited after thorough evaluation.
Ayhan Güner, Vice Chairman of the Jewellery Exporters’ Association, highlighted the importance of Turkey organizing such a unique event, stating: “As the Jewellery Exporters’ Association, our management teams have carried out highly effective and creative efforts to attract major global buyers to trade fairs and procurement events. We aim to build on these efforts and improve each year. Our expectation from economic policymakers is to ensure that producers and exporters can access raw materials at global standards. Turkey is both a large market, where domestic demand is met by Turkish firms, and a global jewelry industry powerhouse exporting worldwide.”
Güner pointed out that recent gold quota regulations have created a significant price gap between raw materials in Turkey and global markets. “While our competitors can purchase one kilogram of gold for $80,000, we have to pay around $84,000–85,000,” he explained, noting the negative impact on production and exports.
Güner also emphasized that the Jewellery Antalya Procurement Delegation was entirely funded by exporting companies and that the year has started on a positive note. He stated that once the gold quota is lifted, many pending contracts will be converted into exports. He added: “Currently, half of the workshops in Kuyumcukent, the world’s largest jewelry production center, are closed… Many companies, especially those that had invested in Turkey from Dubai, have returned there. Others have moved to countries like Egypt and Uzbekistan. We had plans to add three more production hubs alongside Kuyumcukent, creating over 100,000 new jobs. However, we are now at risk of losing nearly half of our 250,000 workforce. These are highly skilled craftsmen earning over $2,000 a month, who cannot work in any other sector. Some are relocating with their companies to other countries, teaching our competitors the trade, essentially creating our own rivals.”
Güner also noted that 70% of Italy’s jewelry exports are directed to Turkey. He highlighted that the country’s finished jewelry imports, which were previously worth $700 million, have now exceeded $5 billion. “Due to the $3,000–4,000 per kilogram price difference in raw materials, manufacturing in Turkey has become more expensive than purchasing finished jewelry from Italy,” he said.
MASAK Regulations Are Challenging the Industry
Expressing support for the government’s efforts to remove Turkey from the Financial Action Task Force’s (FATF) gray list, Güner stated: “I have never faced as many challenges as I do now. On one hand, there’s the gold quota; on the other, MASAK’s (Financial Crimes Investigation Board) requirements are making business operations difficult. We ask for identification from customers, and they question whether they need to establish a company. Yet, we conduct official exports—everything is recorded, monitored by Eximbank. There is no room for illicit activities. Meanwhile, EU countries impose excessive documentation requirements for visa approvals. Similarly, MASAK demands extensive paperwork from our export clients. We spend months securing buyers, only to lose them due to such document requests.
They ask foreign clients to prepare paperwork and get them notarized at consulates, but the consulates claim they are unaware of such requirements. In every possible way, it feels like we are being pushed out of jewelry production in Turkey.
Meanwhile, someone establishes 742 companies with the same accountant, customs broker, and address. Each of these companies is shown as having conducted $20 worth of exports just to gain membership in the Exporters’ Association. Our actual active members are only around 700–800… Yet MASAK does not investigate these entities,” he said, urging the government and economic policymakers to implement more effective measures in combating illicit financial activities while supporting legitimate, registered businesses.