Italy-Trucial States trade relations and the historical pearls trade

di Paola Laviola [*]

Introduction

From the pearl trade, Italy and the Trucial States experienced mutual economic growth and cultural influence, impacting both regions significantly. The historical trade relations between Italy and the Trucial States, focusing on pearls, reveal intriguing economic and cultural interactions between these pre-modern counterparts. In 1853, the sheiks signed the Perpetual Treaty of Maritime Peace, which mandated maritime peace and an end to all wars at sea. The British government, aiming to avoid involvement in the area’s internal issues, restricted its engagement to marine security. Consequently, the term “Trucial States” or “Trucial Coast” emerged from these agreements (Zaga, 2021; Carter, 1915). The Trucial States, now part of the UAE, were renowned for their pearling industry, a vital aspect of their economy and culture. Italy, located in the Mediterranean and already engaged in export business, gained significant influence in this lucrative market (Hightower, 2016; Braudel, 1972).

This article aims to discuss the complex factors of the trade relations between Italy and the Trucial States, particularly focusing on pearls, and evaluate their historical, economic, and cultural value. Italy’s geographic position in the Mediterranean and its growing influence in international trade made it well-positioned to enter the profitable pearl trade with the Trucial States. Leveraging previous maritime trade connections and economic strategies, Italy integrated itself into the Gulf’s pearl trade. Analyzing these trade relations provides insights into their overall cultural and commercial exchanges and explains how these early interactions shaped economic relations and cultural exchanges (Macris, 2015). The sheikhdoms, including Abu Dhabi, Ajman, Dubai, and Sharjah, primarily engaged in pearl diving and trading. Persian Gulf pearls, known for their high quality, were highly valued and played a crucial role in the region’s economy and global trading relationships (Rossiter, 2014; Alaghbar, 2023). Despite the prosperity, benefits rarely reached the lowest-ranking pearl boat crewmen. Monarchs taxed divers, vessels, and merchants, making pearl diving and trading an important revenue source. Italy developed an extensive trade network based on existing commercial and seaborne traditions, extending into the Middle East and Indian Ocean regions. Global and regional events affected pricing, leading to fluctuations in the Gulf pearl market. The article investigates the trade relations between Italy and the Trucial States through pearls and their impact on bilateral relations and the broader context. In the late 19th century, the newly unified Italian state, seeking to assert its supremacy in the Mediterranean, confronted British dominance in the Gulf region. Italy’s ambition to establish a new imperial presence and challenge British influence was driven by its colonial interests in Africa and expansionist mentality (Baldoli, 2008; Schörle, 2010). This pursuit played a crucial role in Italy’s engagement with the pearl trade.

Significance of the Pearls Commerce

The pursuit of pearls had a significant impact on the economy and traditions of the Trucial States. In the 19th century, the Trucial pearl trade was an inseparable part of the international, commercial, and colonial system. During this period were established dependent trading relations that linked the Trucial States to the wider international credit economy, especially Europe. The European market demanded many pearls and particularly the Italy market gave much boost to trade and hence a strong trading fraternity developed. This network turned into a primary mover of the local economy that was connected to the global trading systems (Mathew, 2014).

Moreover, the culture of Orientalism that dominated the time and was a manifestation of Europeans’ curiosity about the Orient contributed to the use of Trucial merchandise. While Orientalism was primarily a movement of the mind, it was also a motor of bodily drives, as European markets eagerly meshed with the Orientalist vision of itself as a consumer of exotic luxuries such as pearls. This aspect of culture and economics shows very strongly the effect that global trade and colonialism have had on the Trucial pearl industry (Baldoli, 2008; Smith, 2015). Italians seem to have dominated this trade offering various new experiences; tastes, and trading procedures to the world (Shor, 2007; Hawley, 1970). From a cultural point of view, trade ensured the exchange of cultures of the Italian people with those of the Trucial States. Italian impact can also be seen in the local trade, cooking, and other structures that had been practiced in the region. Italian traders came across artistic products and social systems of the Gulf region and quite a number noted their experience in their diaries and trade relations reports. All these documents were taken back to Italy and influenced Italian culture and the arts. For example, the sophisticated design of gulf ornaments in jewelry and textiles affected Italian markets enriched local manufacture and introduced new styles. This accounted for the cultural interchange that was mutually welfare to such degrees that the two cultures embraced aspects of each other (Steensgaard, 1974). In conclusion, the traditional commerce, especially in the pearl trade, that had a major role in the economic growth and historical changes of both, the Trucial States and Italy, should be acknowledged as an important aspect of the trade relations in general. The purpose of this article is to present an understanding of these interactions and their significance to the past as well as the present. In this context, this study aims to provide a historical account of the pearl trade by utilizing secondary sources to shed some light on early globalization and its effects on the development of the Pearls producing regions specifically focusing on the UAE. 

Research Methodology

This work uses historical research to analyse the cooperation in trade relations between Italy and the Trucial States, which are the modern-day United Arab Emirates and emphasizes the pearl industry. The study mainly relies on secondary historical literature such as trade records. The analysis of documents and datasets to understand the economic and cultural impacts of this trade enhances the approach as it is factual and therefore reveals the nature and importance of this trade (Zaga, 2021; Marino, 2010).

In particular, little research has been done on how economic and cultural viewpoints have merged and developed throughout history. Thus, this research seeks to bridge this gap by identifying and advancing these aspects. Along the same line, Atry et al. (2023) have also used a similar approach and have provided a detailed picture of historical trade relations with the help of various sources. The interpretivist approach is also used to explain the socioeconomic and cultural factors regarding the pearl trade. This method is useful in understanding the social relations of Italy and the Trucial States since it is a useful structure even in modern history (Hightower, 2016; Braudel, 1972). Moreover, the concept of critical historiography is utilized as the means of examining the ideological and, particularly, the economic aspects of trade. This approach engages with the history of the trade and the historiography of the methods used in its study, acknowledging biases and various perspectives on the trade (Rossiter, 2014; Alaghbar, 2023). In this case, the framework aims at establishing the postcolonial consequences on power relations and economic dimensions of trade. It reinterprets colonial and imperialist narratives and explains how the European powers shaped trade with the Trucial States (Bowen, 1951). Using these methodological approaches and relying on secondary sources, this work will propose a historical analysis of the trade between Italy and the Trucial States intending to give an interpretative key to the phenomenon. 

Comparative Analysis and Discussion 

“The Persian Gulf’s primary industry is pearl fishing, which also serves as the primary source of reven«e for the Arabian population» (Carter, 2005: 139). For most of the nineteenth and early twentieth centuries, the Persian Gulf’s major industry was pearling which was vital to the Arabian populace’s economy (Carter, 2005). However, this industry faced a decline from the new culture pearls coming from Japan into the world market. This transition, the discovery of oil in the Gulf in a gradual process, the involvement of foreigners in the development of infrastructure in the Gulf region, and the gradually increasing demand for oil in the global market brought the economic focus of the Gulf region from pearls to oil. The passing of the pearl trade as a vigorous global business was gradual and, arguably, was already in decline by the early 20th century (Steensgaard, 1974; Carter, 2005). 

Tracing back the history, Lorimer (1915) highlighted that pearl fishing fleets in the Gulf were organized annually, with an “admiral” chosen by the relevant emir. These fleets assembled at common pearling zones, where they had the freedom to select fishing sites. Pearl divers would dive to depths of 15 meters or more, weighted to gather oysters, which were then opened for pearls after spending the night in the water. Some oyster shells were also retained for the mother-of-pearl market (Hopper, 2007). Pearl diving in the Trucial States adhered to a well-defined seasonal pattern: a preliminary dive in early spring around mid-April, the primary diving season from mid-May to early October, a short intermediate dive between these dives, and a winter dive that primarily targeted shallow waters. Every season was specifically designed to maximize the collecting of pearls under different conditions (Bradshaw, 2022). At its peak, the industry employed tens of thousands of men, with an estimated 74,000 workers in the early 20th century, representing about one-quarter of the Gulf Arabian littoral population. The industry relied on foreign capital, with pearl divers and their crews borrowing money for the season, repayable with interest. The market structure in the late 19th and early 20th centuries consisted of financiers, agents, and merchants at various levels, including boat markets and seasonal markets such as Dalma, Hawar Islands, and Jussasiyah. Permanent pearling centers like Manama and Dubai facilitated the large export of pearls to Bombay (Mumbai) for global distribution (Davidson, 2003; Saldanha & Residency, 1986; Shamlān, 2000; Carter, 2005).

Zaccaria (2007) demonstrated that the historical production of pearls and mother-of-pearl in the Red Sea region was similar to patterns observed in the Gulf, including the Trucial States. The Red Sea, known for its abundant pearl reserves, had significant harvesting zones like Hudaydah, Luhayyah, and the area spanning from Massawa to the Dahlak Islands. The ancient practice of pearl diving, existing since at least the 15th century, underscores the Red Sea’s substantial contribution to the global pearl industry. The similarities between the Red Sea and Gulf regions highlight broader trends in the historical development of the pearl trade and its economic impact across these regions (Facey, 2004).

The image below depicts the total pearl export data organized in ten-year intervals from Trucial Oman, Bahrain, and the Persian Coast (1873-1905), effectively portraying the annual value of pearl exports from these regions. Larson noted a substantial rise in exports, with particular attention to early 20th-century figures indicating growth and volatility in the pearling industry during this period. The period from 1873 to 1905 saw notable enhancements in the value of pearl exports from Trucial Oman (now the UAE), Bahrain, and the Persian Coast. Although there were occasional declines due to events like devastating epidemics, the overall trend reveals a pronounced increase in export values, especially at the beginning of the 20th century (Zaccaria, 2007). The total export values for the last decade, from 1893/4 to 1902/3, sum up to approximately 160,359,518, which is more than double the export value of the first decade, from 1873/4 to 1882/3, approximately 68,256,260. This growth aligns with the general historical trajectory of the pearl industry, which saw significant development during the 19th century, likely connected to the increasing global demand and appreciation for pearls during this period. 

The above trend highlights the significance of the Trucial States, now the United Arab Emirates, in the pearl trade, particularly their trade relations with Italy. The Trucial States played a crucial role in the Persian Gulf’s pearl trade, indicating their importance in the regional economy through pearl exportation. Italy, being a leading player in international trade, including the pearl market, was a major partner in this trade. The strategic geographical position of the Trucial States facilitated their engagement in international trade, further emphasizing their role in the global pearl market and Italy’s prominent place in it.

The pearling industry in the Gulf, including the Trucial States, became highly organized and seasonal. Local elites provided the necessary supervision of boats and divers; thus, the coordination of the fishing industry was well maintained within these maritime societies. Nevertheless, the industry is subject to certain fluctuations: according to Hightower (2013), the pearl industry in the Trucial States experienced some fluctuations, which are considered to be up cycles. Throughout its history, the Trucial States’ pearl business has seen significant ups and downs that have had an impact on the region’s economy. Though, unfortunately, precise prices for pearl exports do not exist beyond the late 1890s for the Trucial States, we know from British sources that the pearl industry exhibited an overall decline in the early twentieth century. This moment saw significant development during the years 1904–1905, 1909–13, 1915–16, and 1922–3 which were characterized by brief surges in the production and trading of pearls. But these booms were followed by sharp drops, especially as a result of the 1929 Great Depression, which sharply decreased the demand for pearls and caused a sharp dip in their price. The increased debt problems during economic downturns are evidence that pearl harvesting was inherently cyclical as a business. Nevertheless, the pearl industry, influencing the development of the means of payment and making a contribution to the increasing role of the entire Trucial Coast society in the global economy, left a permanent impact on the transformation of the local financial, and therefore, overall cultural picture. 

Critical insights are provided by the above two graphs as the former represents the pearl-related revenues and the latter depicts the value of dates imported into the Trucial States from Iraq and Oman during 1878-1897. Even when the pearl prices decreased, there was stability in the imports of dates which suggests that the population was continually investing in this essential commodity. The cycle of boom and bust reinforced the optimism that no matter how much debt was taken it could be repaid: individuals appear to regularly take on more debt to pay for necessities in a pattern of faith that the market would recover and allow them to pay it off in the following better season (Hightower, 2013). The first graph also shows that although there is a substantial level of volatility in the pearl market – as represented by the peaks and troughs – there is a consistently higher value of pearls which shows their significance in trade.

Collectively, these graphs represent that the pearl trade was highly interconnected with other economic activities, such as the import of dates. It is demonstrated that the prosperity which stemmed from the pearl market and its trade, not only pushed other trade activities but also proved to be a source of sustenance for the socio-economic indicators of the Trucial States. Pearl industry was one of the largest employers and contributed a lot to the economy but most of the pearls produced were sold in the export market. Despite the industry being characterized by fluctuations and subsequent decline because of various factors, it left a lasting impact. It influenced the financial operations and the changes in culture thus serving as an example of the historical aspect despite the changes in economies.

From the economic and socio-cultural points of view, the pearl trade between Italy and the Trucial States which is in the present United Arab Emirates was complex as well as efficient. That economically the trade was mutually beneficial was evident. The Trucial States exported natural pearls making of the trade an important source of income; most of which helped to develop the local economy and living standards. The middlemen, the Venetian merchants, continued to benefit from this particular trade in this active market.

In Europe, pearls were considered the epitome of status and sophistication (Lorimer, 1915). It was such a trade that helped in the growth of the economy of the Gulf region but at the same indicating that the economies of the Gulf region remain sensitive to changes in the international trade cycle. The trade culturally entailed major exchanges between the two regions. The Italians provided new learning on practices and knowledge in navigation as well as trade but were in turn given exposure to new products and local cultures (Nicolini, 2007). This exchange embraced artifacts, food, and practices that increment the growth of different identities between the two societies. Both regions encountered several issues and conflicts in the trading activity. Since these local divers were competing with international merchants, they developed a lot of tension with the latter over the rich resources that were in the region. The lack of strong laws and the appearance of the black market contributed to the destruction of economic flow and the contradicting dynamic of trade relations (Aqil, 2018; Rentz, 1951). They made the population realize that simple economic relations were rather fragile and involved a noteworthy delicate balance.

Like most organizations of its kind, the decline of the pearl trade at the beginning of the twentieth century had severe consequences in the Trucial States and the rest of the Persian Gulf. These features – the Industrial Revolution, the introduction of artificial pearls, and oil finding – moved people’s focus from pearling. Although the pearl trade has declined, it was one of the major economic influences for the region and the people of the country have not been able to erase the mark of this trade. Currently, business and trading relations between Italy and the UAE have developed concerning several fields, being one of them the production of luxury items products.

Conclusion

Italy and the Trucial States, the modern-day UAE, had a rich history of interaction, mainly through the pearling industry which defined the relationship between the two regions. The prosperity this trade created cannot be underestimated because it enhanced the GDP of the Gulf States through the exportation of natural pearls. It has been seen that there were exchanges of these two cultures that had a long-standing influence on the given regions. Nevertheless, the pearling trade encountered some problems, for instance, fluctuation in the demand for pearls, stiff competition, and bureaucracies involved in the industry. The reasons for the decline of the industry were industrialization and the introduction of artificial pearls which shifted the economic model of the Trucial states. However, this decline did not translate to lessened relations between Italy and the Gulf, on the contrary, the discovery of oil led to the discovery of new forms of cooperation between Italy and the Gulf countries.

While the trade in pearls does not represent today’s cross-cutting trade and economic relations between Italy and the UAE, it created a framework for building bilateral relations. Trade interdependence which was the basis of historical economic relations between the Trucial states and Italy is still important in the modern economic and cultural relations between the two regions, which proves that these past interactions are relevant to the present.

Dialoghi Mediterranei, , n. 70, novembre 2024 

[*] Abstract 

Questo articolo esamina l’impatto culturale ed economico del commercio di perle tra l’Italia e gli Stati della Tregua (oggi Emirati Arabi Uniti) nel periodo che va dalla fine del XIX secolo all’inizio del XX secolo. Attraverso un metodo storico multidimensionale e l’analisi di fonti secondarie, lo studio valuta la rilevanza di questo commercio. Questa valutazione mette in luce come i rapporti di potere nel settore commerciale fossero sbilanciati a favore dell’Italia.  Le perle, la madreperla, il corallo nero e le spugne erano tra i prodotti più richiesti, contribuendo alla crescita socioeconomica e al benessere nei Paesi della Tregua. I Trucial States giocavano un ruolo cruciale nelle vendite di questi prodotti sul mercato globale, soprattutto verso i mercati di Bombay e dell’Europa. In aggiunta, uno scambio culturale è avvenuto perché i commercianti italiani erano in stretto contatto con le popolazioni indigene, condividendo la propria cultura, idee e tecnologia con loro; e i mercanti tamil contribuirono agli scambi commerciali introducendo i costumi, la lingua e il cibo tamil.  Tuttavia, il commercio non era privo di ostacoli: elementi come la concorrenza tra i mercanti, l’instabilità dei prezzi e la violazione di norme erano spesso presenti. La comparsa delle perle artificiali e l’impatto della rivoluzione petrolifera dei primi anni del XX secolo esercitarono una forte pressione sul commercio in questione. La domanda fu poi influenzata dalla Grande Depressione del 1929, che portò a pressioni e cambiamenti nelle pratiche commerciali. Una volta esaurito il commercio delle perle, l’Italia si orientò verso il petrolio, influenzando l’economia dei Trucial States e l’attività della pesca delle perle. L’industria delle perle ha svolto un ruolo strategico nel creare le basi delle attuali relazioni economiche tra Italia ed Emirati Arabi Uniti, mostrando come questo rapporto commerciale, un tempo fondamentale, abbia avuto un impatto sulle relazioni attuali. 

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Paola Laviola, originaria di Lucera, in provincia di Foggia, si è laureata in Lettere Moderne all’Università degli Studi di Macerata. In seguito, ha conseguito un master in Scienze Storiche presso l’Università Cattolica di Milano e si è laureata cum Laude con la tesi “Donne e Giustizia Penale nella Capitanata dell’Ottocento” basata sull’analisi di documenti giudiziari dell’Archivio di Stato di Lucera. Studiosa di storia e antropologia, ha vissuto in diversi Paesi e ha viaggiato a lungo in Asia, approfondendo la storia e le religioni. Attualmente vive negli Emirati Arabi Uniti.

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