Saudi Arabia's diamond trade has crossed the $1 billion barrier for the first time, placing it amongst the top four in the world.

Diamond Promotion Services - the marketing arm of Diamond Trading Company - said the diamond jewellery market in the kingdom was $1.1 billion, a far cry from the $612 million it registered in 1999.

Diamond Promotion Services director for the Gulf Region Anan Fakhreddin said: "This is undoubtedly excellent news to us and to all in the kingdom's diamond jewellery trade. After this big leap, Saudi Arabia is now the fourth market in the world after the US, Japan and India, taking over Italy's place and ranking in fourth place." The results showed that the diamond sets segment was the largest at 54 per cent of the total market, followed by diamond pieces, 46 per cent.

Fakhreddin said Riyadh city was in top place achieving 55 per cent of the market. The Western Province achieved 26 per cent, followed by the Eastern Province, 9 per cent. Fakhreddin said improvements in the Saudi economy in 2000 and 2001 affected the entire industry allowing it to grow and improve.

"The jewellery industry has always been a national one to a high extent. There are international Saudi brand names in the industry. This growth would not have been possible without the support of the Diamond Trading Company, which worked on intensive advertising campaigns in the Saudi market since 1995, spending tens of millions of dollars to support the industry," the official added. Saudi Arabia has intensified efforts at diversifying the economy away from reliance on oil income. In recent years, the oil market has witnessed fluctuations, leaving prices at lower-than-expected levels for long periods. This has prompted the kingdom as well as other-oil exporting states in the region to redouble efforts to develop the non-oil sector including manufacture, fisheries and minerals.