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56 The Origins of the United Arab Emirates
had very serious economic and social repercussions, since it necessarily
withdrew the pearling manpower for military purposes.
During the inter-war period there occurred a number of external
events that hastened major changes in the position and functions
of the ruler. The growth of British interests in the area progressively
led to direct British intervention in the internal affairs of the shaykh-
doms. The conclusion of oil agreements, beginning in the 1930s,
made it necessary for boundaries to be defined and increased the
importance of the hinterland. One of the casualties of the world
depression of 1929 was the vital pearling industry. With the advent
of new sources of revenue, the growth of trade centres (Bahrain,
Kuwait, Dubai) and the sudden demise of well-established economic
activities, the entire political economy of the region underwent
a major transformation.

THE RULER’S ECONOMIC BASE

The economic activities of a shaykhdom naturally provided the
ruler and his dependents with their main source of income, the
size of which depended on the size and wealth of the shaykhdom.
The ruler’s income was also, of course, related to his power and
standing, which affected the rhythm of economic activity and deter­
mined whether his walk paid their taxes—indeed, whether taxes
could be imposed. In general, the largest tax was on the pearling
industry: the ruler would usually collect duty on every pearl boat
in operation, and sometimes a commission on the sale of pearls.
Customs duties and taxes on certain forms of agricultural produce
were also usual. Having acquired a reasonable income from these
dues, the ruler would then himself be able to become a pearl
merchant of some standing or a dealer in rice or other agricultural
products.
In 1908, Lorimer estimated that Zayid bin Khalifah derived
an annual income of as much as SMT 75,000 (Maria Theresa
dollars) or around £67111 from various sources, the most outstanding
of which (82 per cent) was the pearl trade. The rest came from
agricultural taxes collected from the Liwa oasis; a tax on the
dates produced in the Buraimi oasis; a tax on the horses maintained
by Zayid in Buraimi; and a subsidy paid him by the sultan of
Muscat in return for preventing the tribes of Buraimi and the
Dahirah from raiding his territory.2 The income of the shaykh
of Sharjah was considerably less: 33,400 rupees, or around £2227.
This was because many of his governors kept for themselves much
of the tax they levied. The ruler of Dubai had an income of