By the early 20th century the pearl industry in the Gulf was at its height and accounted for up to 95% of national incomes. However, during the 1930's economic depression in Europe caused a drop in demand for natural pearls and the Japanese had developed the cheaper cultured pearl in 1921.
The discovery of oil saved the Gulf economy and many pearl divers found employment in the new industry. Diving continues today only as a hobby or for the growing tourist market.
New Industries
'What is good for the merchants, is good for Dubai'. H.H Sheikh Rashid Bin Saeed Al Maktoum stated.
When depression hit the Gulf during the 1930's the region entered a difficult period yet Dubai's trade base continued under H.H Sheikh Rashid's astute leadership.
By 1955 Dubai was the commercial capital of the region. Forward thinking had established an infrastructure for the new oil industry and the modern banking system strengthened the trading community and ensured its future.