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."



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.