Bahrain: Pearl of the Gulf

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04 July 2008
Bahrain is looking to cement its place as one of the world's leading pearl grading centres, while reviving a traditional industry that was once the mainstay of the island kingdom's economy.

On June 30, a new state-funded, high tech pearl and gem testing and grading laboratory was opened in Manama, part of a programme to keep Bahrain at the forefront of the international pearl assaying industry.

According to Hassan Abdullah Fakhro, Bahrain's minister of commerce and industry, the new lab is among the best in the world and underscores the government's commitment to promote the natural pearl industry. The country's own natural pearl production is relatively small and the primary source of income is expected to come through testing and grading foreign pearls.

The lab will also assay gemstones such as diamonds, and is authorised to issue internationally accepted certificates attesting to quality and authenticity.

Bahrain has long been a major international grading centre, with the country's first testing facility established in 1990. Pearls from around the world are sent to the Bahrain lab for testing, to authenticate whether they are natural or artificial and to assess their quality.

In the early part of the twentieth century, more than 40% of the Arabian Gulf pearl trade came out of Bahrain. The economic shift away from traditional activities, and the dramatic drop in the number of pearl beds, partly due to overfishing and pollution, are all thought to be causes of the industry's decline since the 1930s.

Nevertheless, on June 28, more than 200 people took part in a cultural event aimed at rekindling interest in pearl diving. Bahrain's second annual pearl diving day, backed by King Hamad bin Isa Al Khalifa, involved a fleet of 10 boats, including six traditional dhows setting set sail from the city of Muharraq, once the centre of Bahrain's pearling industry, to dive for oysters in the Sayah region off the coast.

Saleh bin Hindi, the king's adviser for youth and sport affairs, said the event was intended to raise awareness of the pearl diving industry and perhaps even kick-start a renewal of its fortunes.

"We have a great treasure in our sea, we should use it and revive this traditional craft, maybe even get a company to extract the oysters from the sea again," bin Hindi told local press.

Such is the sense of pride for the resource that in May, Bahrain lodged a submission with UNESCO (United National Educational, Scientific and Cultural Organisation) to have some 38,000 ha of traditional oyster beds declared cultural landscapes.

While the event at Muharraq may have served more as a cultural exposition than an economic showcase for the trade's potential monetary value to investors, the industry itself is big business. According to a report issued at the first international pearl convention held in Abu Dhabi in November, 2007, the global pearl industry is estimated to be worth $3bn by 2010, double its value at the end of 2007. With its state-of-the-art-testing facility, Bahrain has signalled its intent to gain a slice of the lucrative trade.

Bahrain is set to face competition in the lucrative pearl assessing trade, however. In February, the announced plans to establish a grading centre of its own, linked to the Dubai Pearl Exchange (DPE), as part of efforts to develop into as a leading international pearl trader.

The DPE launched in April 2007, and currently uses the services of the Bahrain lab for grading. The emirate is already home to the Dubai Gem Certification Services, which was the world's first gem certification service for diamonds, gemstones, pearls, and jewellery.

Along with increased competition from regional and international rivals, pearl diving is still far from being an industrialised profession with most divers still amateurs. Yet Bahrain retains its reputation as the pearl of the Gulf.

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