RAK Pearls reinvents an ancient local culture

Before oil became the mainstay of the country's economy, the region was known as a centre of pearling. A company in Ras Al Khaimah hopes to revive that traditional industry.

A pearl inside an oyster at the RAK oyster farm. Pawan Singh / The National

Before the discovery of oil, the growth in global airlines and the advent of a booming retail market, there was once another dominant business sector in the UAE: pearling.

It employed a huge part of the population for hundreds of years and pearls from the Gulf were famous around the world.

The death of the UAE pearling industry came in the 1930s when the Japanese began to culture cheap pearls and export them globally.

But one company is now trying to revive the pearling culture in the UAE by expanding its operations as the first and only cultured pearl producer in the Gulf.

"There are now a huge number of tourists visiting the UAE and there's a history of pearling in the region that people will want to hear about and buy the pearls," says Abdulla Rashed Al Suwaidi, the vice chairman and managing director of RAK Pearls Holding, which is now producing 40,000 pearls a year at its farm outside Ras Al Khaimah.

Mr Al Suwaidi signed an agreement this week with Mouawad, the jeweller behind the world's most expensive handbag, to exclusively use the pearls to design, create and sell jewellery around the world.

Mouawad, which was founded in Beirut in 1890, last week unveiled a diamond watch in Doha worth US$6.8 million (Dh24.9m) and has previously exhibited a $3.8m handbag, which made the record books.

The jeweller aims to make up to 12 pieces from RAK Pearls in its Dubai factory in the next few months, with each worth up to Dh1m. It will then take the pieces to exhibits around the world, showcasing the RAK Pearls brand.

The partnership with Mouawad is the first in what Mr Al Suwaidi hopes will be a long line of deals promoting locally cultured pearls and jewellery produced 100 per cent in the UAE. A 20-day exhibition, The Culture of the Pearl, kicks off today in Ras Al Khaimah, promoting marine activities, films on the history of pearls and showcasing a number of rare pearls from around the world.

Mr Al Suwaidi talks exclusively to The National about the responsibility to his ancestors' roots and the direction he wants to take RAK Pearls.

Pearling was once the biggest industry in the UAE. Are you nervous about reviving it?

Of course. In late 2009, RAK Pearls Holding was established jointly by the Investment and Development Office (IDO), the Government of Ras Al Khaimah, and Emirates and Japan Holding. Being the first cultured pearl company in the country and this part of the world, which is linked historically to the pearl industry, we find ourselves very socially and culturally responsible in this situation.

Are we ever likely to see a hugely successful cultured pearl industry here in the UAE?

We are not making a totally commercial business, but are taking it in steps. The first challenge is to brand the pearls and reach the market. It's not about selling to one wholesaler but to a number of wholesalers. Initially, no one will understand the difference between the cultured pearl from the Gulf and other countries. We chose Mouawad because it is in a line of business that's all about exclusivity and high quality.

So you want to build the RAK Pearls brand first?

What we want to do is build a suitable identity for the Gulf. Our pearls will be available for everyone but the highest-quality pearls will be available to Mouawad. We are looking for opportunities to partner with wholesalers to use our medium-quality pearls. We will also look to sell at auction. We are not going to go quickly into the market. The partnership with Mouawad should create a good product for royalty and celebrities.

How many high-quality pearls do you culture each year?

We culture about 40,000 pearls and about 10 per cent of those are high-quality and could be used in Mouawad jewellery. Our pearls are in the medium to high end of the market. They cost Dh1,000 to Dh20,000.

Are you looking eventually at retail stores for the RAK Pearls?

At the moment, we are not looking for a partnership with a retailer to create our own branded stores. It's not in the plan, but could be an option for the future. We would consider it, but we would need to check the demand first.

Will you take your cultured pearl concept to other parts of the UAE and wider Gulf?

We have been approached by many people, but we are looking for people with a passion for pearls. I have collected samples from other parts of the UAE, in Oman and Saudi Arabia, where farms could be created. I have not yet been approached by a serious franchisee who can open doors. We want the concept of a pearl farm, a museum, a gift shop, and a restaurant to be franchised across the UAE.

You are not relying fully on selling pearls then. Why are trying to build a brand around the farm, a restaurant and a museum?

There is now a huge number of tourists visiting the UAE and there's a history of pearling in the region. People will want to hear about it and buy the pearls. RAK is also looking to increase the number of tourists and we are promoting pearls at the Culture of Pearl Festival, which runs from March 1 until March 20.

Is there such a thing as a pearl tourist?

When I say leather shoes, you probably think of Italian designers. Everyone makes shoes, but quality is known professionally and culturally to be Italian. When I say pearls, I want people to say the Gulf, because of the history. Pearling is coming back to the region. I want visitors to go 'wow', I learnt a lot I did not know about pearls.

Is the business profitable at the moment?

It's definitely a profitable business. We have plans to take this business forward and eventually look for more and bigger facilities.