Bahrain’s natural pearl sector has witnessed prices surge by at least 40% over the past year, buoyed by the renewed global demand for rare gemstones as laboratory-grown alternatives gain market share, said a top official of Bahrain Institute for Pearls and Gemstones (Danat).
The price gains reflect a shift in consumer and investor preferences towards assets perceived as scarce and authentic, at a time when lab-manufactured diamonds and gemstones have become more widely available.
Bahraini pearls, harvested through traditional diving methods, are once again attracting interest as both luxury items and investment assets, stated Yaser Alsharifi, the Chairman of Danat.
The rise in prices underscored the impact of the kingdom’s efforts to revitalise the sector and position it for long-term growth.
"The sustained growth in the value of natural Bahraini pearls, exceeding 40%, should not be viewed as a temporary surge, but rather as a reflection of renewed global confidence in assets defined by historic rarity and exceptional quality," stated Alsharifi.
Danat operates under an ambitious vision aimed at reinforcing Bahrain’s position as a leading global hub for pearl trading, testing, and certification.
"The rising international demand we are witnessing today reaffirms that Bahraini pearls continue to represent the global benchmark, with a proven capacity to generate rewarding investment returns that outperform many conventional asset classes," he added.
A wholly-owned subsidiary of the Bahrain Mumtalakat Holding Company (Mumtalakat), the kingdom's sovereign wealth fund, Danat was established in 2017 under the aegis of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of the Kingdom of Bahrain.
Its vision is to become the world’s preferred institute for natural pearls and gemstones’ third-party verification services and scientific research.
On the overwhelming global demand, Danat CEO Noora Jamsheer said the market was undergoing a structural shift in buyer preferences, particularly as awareness grows regarding the fundamental differences between natural and manufactured gemstones.
"Today, we are witnessing a clear shift among consumers and investors away from diamonds, as their investment appeal has diminished with the rise of lab-grown diamond alternatives and the resulting erosion of rarity," she stated.
"In contrast, natural pearls are emerging as a truly rare and enduring asset - one that cannot be replicated. This is where the significance of Danat certification comes to the forefront, establishing a critical foundation of trust. By providing complete confidence in the intrinsic value and authenticity of each piece, Danat certificates are playing a pivotal role in encouraging designers and retailers to reintroduce natural pearls into their jewellery collections," he added.
Looking ahead, industry experts believe the natural Bahraini pearls will sustain their upward momentum as the structural gap between supply and demand continues to expand.
Harvested through traditional, labour-intensive diving practices, natural pearls remain inherently constrained in supply, while global demand accelerates in tandem with their growing recognition as an emblem of sustainable luxury.
Against a backdrop of sustained strength across precious commodities and high-end luxury markets, Bahraini pearls appear well positioned to continue their positive trajectory, said the Danat officials.
This outlook is further reinforced by the kingdom’s ongoing initiatives to safeguard marine ecosystems and regulate the diving sector, measures designed to preserve the long-term sustainability of this exceptional national resource, one that seamlessly bridges deep-rooted heritage with expanding economic value, they added.-TradeArabia News Service
