Collapse of the pearling industry in the Persian Gulf. The competition of Japanese cultured pearls and the onset of the Great Depression together spelled the end for pearl diving in the region, which had been the chief support of the economy. Only Bahrain, which began to exploit its oil reserves, was saved from complete economic devastation during the Great Depression.
Suppression of the Ikhwan. Ibn Sa‘ud organized a campaign to defeat rebellious tribesmen who, originally with his encouragement, had settled on cultivable land and organized themselves into religious communities based on a strict Wahhabi interpretation of Islam. Their frequent raids into neighboring states—to fight “infidels”—had become a serious diplomatic problem for the Saudi dynasty. Ibn Sa‘ud was able to rally broad support and mount an offensive against them only after they had begun to attack towns and tribes within Arabia itself. The Ikhwan communities were not entirely disbanded, but they never again presented a threat to the Saudi state.
