- Title: BAHRAIN: Bahrain's gold market is one of the oldest souks in the Gulf
- Date: 8th August 2007
- Summary: GOLD AND PEARL NECKLACE AND EARRINGS VARIOUS GOLD NECKLACES IN DISPLAY AT SHOP MORE JEWELLERY ON DISPLAY VARIOUS GOLD/ DIAMOND NECKLACE GOLD AND DIAMOND RING
- Embargoed: 23rd August 2007 13:00
- Keywords:
- Location: Bahrain
- Country: Bahrain
- Topics: Arts / Culture / Entertainment / Showbiz,Travel / Tourism
- Reuters ID: LVA6EXSKI4ZV56E7DJWYK7ETSJM6
- Story Text: While Dubai has become the main centre for gold trade in the Gulf, Bahrain's gold market (gold souk) has been known for the skilled craftsmanship of it goldsmiths for many year.
Located in the heart of the Arabian Gulf, the island's commercially strategic location has attracted merchants and traders from across the Middle East and Asia for many years. Today, Bahrain's gold market is located in the bustling heart of one of Manama's busiest district and has become a main tourist attraction. A more modern complex, known as 'Gold City' has been built over the years housing more than 152 shops.
Hundreds of people flock to Bahrain's 'Gold City' each day, fascinated to see endless rows of glittering necklaces, bracelets and various other jewellery and ornaments, which include a variety of 21 karat, 22 karat and 24 karat gold as well as jewellery made of platinum, silver, diamonds and pearls.
According to gold traders, regional and foreign merchants were first attracted to Bahrain because of its rich pearl industry. Jewellers in Bahrain maintain that some of the world's best pearls used to come from Bahrain, and that the country's thriving gold industry is actually an outgrowth of its once thriving pearl industry.
"Bahrain was a source, a world market for pearls. So they were interested in Bahrain, those in the Gulf used to come and sell their pearls here and from Bahrain they would export it to India and other parts of the world. So, gold was worked with pearls, so the gold in Bahrain became better quality than that in the Gulf, because it was older in comparison to the rest of the Gulf," said Faisal al-Allawi, a jewellery shop owner.
The natural pearl industry ended in the 1930s after the discovery of oil in the region. However, Bahrain remains a leading trading centre for pearls and on a more regional level, for gold.
Many of the country's gold experts are from neighboring Asian countries and have become key players in the industry for over three decades.
Mohammed Rafi', owner of a gold workshop, says that what makes Bahrain's gold unique is the craftsmanship involved.
"...The reputation of gold in Bahrain is due to the great handwork involved, which established gold here. The professional handwork has created this great reputation for the gold (industry) in Bahrain," said Rafi'.
Much of the jewellery in Rafi's workshop consists of traditional and Bedouin design. But Rafi' says trends and fashion are changing dramatically in the region with growing demand for modern European jewellery.
"Life is changing rapidly and public taste (in jewelry) has also changed dramatically. Demand for old fashioned gold (ornaments and jewelry) has become very, very limited. Now, people are demanding more simple jewellery. People are more interested now in simplicity," he added.
According to the World Gold Council (WGC), gold consumption in Bahrain was 13 tonnes in 2004 (12 tonnes in 2003) worth $197 million ($163 million in 2003). In the first quarter of 2007, the total gold consumption in the six GCC countries was 66.2 tonnes, which according to WGC, is an increase of 6.1% since the first quarter of 2006. Much of the demand comes from strong economies and tourism. According to analysts, gold prices in the region are expected to increase to $ 700 (USD) per ounce by the third quarter of 2007. - Copyright Holder: REUTERS
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