A Real Gem: In Bahrain, Only Natural Pearls Will Do

Faten Mattar is one of the first women to work in the family business, one of the oldest pearl shops in Bahrain. (AFP)
Faten Mattar is one of the first women to work in the family business, one of the oldest pearl shops in Bahrain. (AFP)
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A Real Gem: In Bahrain, Only Natural Pearls Will Do

Faten Mattar is one of the first women to work in the family business, one of the oldest pearl shops in Bahrain. (AFP)
Faten Mattar is one of the first women to work in the family business, one of the oldest pearl shops in Bahrain. (AFP)

Customers at a Bahrain jewellery store study displays of pearls that are, unusually, 100 percent natural -- the result of attempts to preserve a centuries-old industry.

While rare elsewhere, natural pearls prised from seabed oysters by divers are the only variety produced in the Gulf kingdom, which is fiercely proud of its pearling tradition.

Bahrain is the sole country worldwide to have banned the cultivation of artificial pearls, which have flooded the market since the 1920s.

"We can't mass-produce," said Faten Mattar, who works at the family-run jewellery shop, told AFP.

It can take up to five years to complete one strand of a necklace by sourcing pearls directly from divers, she said, admitting it is "a challenge".

And larger pieces, which can go for up to $25,000, might take more than a decade to complete.

But with no two natural pearls identical, Mattar said that was part of the appeal.

"Each person... who owns or gets a piece of jewellery that contains natural pearls knows no one else has the same."

Mattar is one of the first women to work in a family business which was established more than two centuries ago, making it one of the oldest in Bahrain.

Pearls adorn bracelets, necklaces, cufflinks and other items in the small store.

"One of our goals... is to make pearls more attainable for everyone, so we created different lines instead of having just big pieces," she explained, mentioning designs for men and "daily jewellery for a younger crowd".

Cultured 'shock'

Like other Arab Gulf states, Bahrain's economy before the discovery of oil had relied on pearl harvesting.

Bahraini free-divers would spend months aboard traditional dhows, the wooden sailboats that have plied Gulf waters for centuries, to capture pearls prized by the region's royal families as well as European fashion houses.

But the natural pearl trade crashed after the Great Depression of the 1930s and the development in Japan of cultured pearls, artificially propagated in freshwater mussels, which are cheaper and easier to produce.

Muharraq, in Bahrain's north, is home to "the last remaining complete example of the cultural tradition of pearling", according to UNESCO, with a heritage site featuring oyster beds and a fortress where dhows used to set off.

Today, young gemologists at the Bahrain Institute for Pearls and Gemstones (DANAT) -- nestled among the capital Manama's skyscrapers -- scrutinize pearls using modern machinery or the naked eye.

One researcher passes a pearl through an X-ray machine under the watch of Fatima Almahmood, a graduate in physics and gemology.

The X-ray detects "growth lines" that distinguish natural pearls from cultured ones, she explained, pointing to an image of the scan projected onto a screen.

Created in 2017, DANAT appraises pearls at the request of merchants and individuals.

"You'd be surprised by how many clients come to DANAT that have inherited pieces and are then shocked to know... (they) contain cultured pearls," says Noora Jamsheer, who heads the research center.

Apart from appraisal, DANAT also monitors conditions in the water where natural pearls are harvested.

Jamsheer said climate change is a cause for concern.

"We have a research team that is continuously going to the field, researching and collecting data -- the water temperature, water quality, salinity -- to determine and study the impact of these factors."



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.