Jacob Arabo, widely known as “Jacob the Jeweler,” has become a legendary figure in the luxury jewelry and watchmaking industry. His journey from a young immigrant to a titan of the luxury world is a testament to his creativity, resilience, and entrepreneurial spirit
Early Life and Immigration
Jacob Arabo was born as Yakov Arabov on June 3, 1965, in Tashkent, Uzbekistan, then part of the Soviet Union. His family, Bukharan Jews, made the life-changing decision to emigrate to the United States in 1979, seeking better opportunities for their future. At the tender age of 14, Jacob found himself in New York City, facing the challenges of a new country, culture, and language.
The stark contrast between the uniformity of Soviet life and the vibrant diversity of New York City would later influence Jacob’s creative direction, pushing him towards designs characterized by opulence and uniqueness. This early exposure to different worlds would become a cornerstone of his future success in the luxury industry.
The Beginning of a Jewelry Empire
Upon arriving in the U.S., Jacob wasted no time in pursuing his passion for jewelry. He enrolled in a six-month government course in jewelry design, completing it in just four months – an early indication of his dedication and talent. His first job in the industry was at a local jewelry factory, earning $125 a week, which was a significant amount for a teenager at the time.
However, Jacob’s ambition and creativity soon led him to strike out on his own. By the age of 20, he had saved enough money to open his own retail stall in New York’s Diamond District. This bold move marked the beginning of what would become a jewelry empire. Jacob’s unique designs, characterized by their size and scope, quickly gained attention and set him apart from his competitors.
Rise to Fame: Jacob the Jeweler
Jacob’s innovative designs and attention to detail soon caught the eye of celebrities and high-profile clients. His ability to create bold, eye-catching pieces resonated particularly well with the hip-hop community, earning him the moniker “Jacob the Jeweler”. This association with celebrity culture catapulted Jacob & Co. into the spotlight, making it a household name in luxury circles.
The brand’s popularity soared in the 1990s and early 2000s, with Jacob designing custom pieces for entertainers and athletes. His Five Time Zone watch, introduced in 2002, became an iconic piece, catering to the jet-setting lifestyle of his clientele. This success in watchmaking marked a significant expansion of Jacob & Co.’s offerings beyond traditional jewelry.
Legal Challenges and Resilience
Despite his rising success, Jacob Arabo faced significant legal challenges that threatened to derail his empire. In 2006, he was arrested on charges related to a federal money-laundering investigation, accused of conspiring to launder approximately $270 million in drug profits for the “Black Mafia Family”.
In 2007, Arabo pleaded guilty to falsifying records and making false statements to federal agents. As part of a plea deal, he was sentenced to 30 months in federal prison and fined $2 million. This period was undoubtedly a dark chapter in Arabo’s career, but it also demonstrated the resilience of his brand and personal reputation.
Remarkably, Jacob & Co. managed to maintain its status in the luxury market despite these legal troubles. The brand’s strong celebrity clientele and unique designs continued to attract high-profile customers. This resilience speaks volumes about the strength of the brand Arabo had built and the loyalty of his customer base.
Innovation and Expansion
Following his legal troubles, Jacob Arabo doubled down on innovation and expansion. The company ventured into high-end watchmaking, creating pieces that pushed the boundaries of traditional horology. The Astronomia Tourbillon, unveiled in 2014, became a signature piece for the brand, featuring a revolutionary design with a triple-axis tourbillon and celestial-themed elements.
Jacob & Co.’s growth has been impressive in recent years. From 2020 to 2022, the company reported a revenue increase of 132%, growing from $81 million to $188 million. This growth was largely driven by a strong demand for luxury watches, which accounted for approximately 80% of the company’s revenue during this period.
The brand has also been expanding its international presence aggressively. By 2023, Jacob & Co. had plans to open additional boutiques and shop-in-shops, bringing the total to 94 locations in 34 countries. This global expansion strategy has been crucial in establishing Jacob & Co. as a major player in the international luxury market.
Ventures into Digital Luxury and NFTs
Always at the forefront of innovation, Jacob & Co. has recently ventured into the world of digital luxury and NFTs (Non-Fungible Tokens). In 2021, the company became the first luxury watch brand to sell an NFT, marking its entry into the digital luxury space. This move demonstrates Jacob Arabo’s commitment to staying ahead of trends and embracing new technologies.
The “Astronomia Metaverso” collection is a prime example of this strategy, featuring both physical and digital watches inspired by the planets of the solar system. This innovative approach not only caters to traditional watch enthusiasts but also appeals to the growing community of crypto collectors. By bridging the gap between physical and digital luxury, Jacob & Co. is positioning itself as a leader in the evolving landscape of luxury goods.
Jacob Arabo’s Net Worth
Estimating Jacob Arabo’s net worth is challenging due to varying reports. As of 2023, his net worth was reported to be $50 million. However, more recent estimates in 2024 suggest that his net worth could be as high as $100 million or even $200 million. Some sources even list his personal net worth at approximately $1 billion USD, though this figure seems to be an outlier compared to other estimates.
Regardless of the exact figure, it’s clear that Jacob Arabo’s net worth reflects his significant impact on the luxury jewelry and watch industry. His financial success is a testament to his innovative designs, strategic business decisions, and the global appeal of the Jacob & Co. brand.
Philanthropy and Personal Life
While specific details about Jacob Arabo’s philanthropic efforts are not extensively documented, his business practices reflect a commitment to community and inclusivity. Jacob & Co. is known for making everyone feel welcome, regardless of their background, which has been a cornerstone of his business philosophy since its inception.
On a personal level, Jacob married his wife, Angela, at the age of 24. They live in a brick Colonial house in Forest Hills, Queens, which they purchased for $1.17 million in 1999. Despite his success and busy lifestyle, Jacob maintains strong family ties, spending weekends with his family in Queens. This balance between his high-profile career and grounded personal life speaks to the values that have guided him throughout his journey.
Future Outlook
Looking ahead, Jacob & Co. shows no signs of slowing down. The company continues to push the boundaries of luxury watchmaking and jewelry design, with plans for further global expansion and innovative product lines. The brand’s recent ventures into NFTs and digital luxury position it well to capitalize on emerging trends in the luxury market.
Under the leadership of Jacob Arabo’s son, Benjamin Arabov, who took over as CEO in 2022, Jacob & Co. is poised for continued growth and innovation. The company’s ability to blend traditional craftsmanship with cutting-edge technology and design will likely remain a key factor in its future success.
