In 1783, the al-Khalifa family captured Bahrain from the Persians. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. King HAMAD bin Isa al-Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shia community. Shia political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shia political society, won the largest number of seats in the elected chamber of the legislature. However, Shia discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.

Middle East, archipelago in the Persian Gulf, east of Saudi Arabia

26 00 N, 50 33 E

Middle East

3.5 times the size of Washington, DC

0 km

161 km

arid; mild, pleasant winters; very hot, humid summers

mostly low desert plain rising gently to low central escarpment

oil, associated and nonassociated natural gas, fish, pearls

40 sq km (2003)

0.1 cu km (1997)

periodic droughts; dust storms

desertification resulting from the degradation of limited arable land, periods of drought, and dust storms; coastal degradation (damage to coastlines, coral reefs, and sea vegetation) resulting from oil spills and other discharges from large tankers, oil refineries, and distribution stations; lack of freshwater resources (groundwater and seawater are the only sources for all water needs)

close to primary Middle Eastern petroleum sources; strategic location in Persian Gulf, through which much of the Western world's petroleum must transit to reach open ocean

727,785

1.285% (2009 est.)

17.02 births/1,000 population (2009 est.)

4.37 deaths/1,000 population (July 2009 est.)

0.2 migrant(s)/1,000 population (2009 est.)

2.5 children born/woman (2009 est.)

0.2% (2001 est.)

fewer than 600 (2007 est.)

fewer than 200 (2003 est.)

Bahraini 62.4%, non-Bahraini 37.6% (2001 census)

Muslim (Shia and Sunni) 81.2%, Christian 9%, other 9.8% (2001 census)

Arabic, English, Farsi, Urdu

3.9% of GDP (1991)

constitutional monarchy

5 governorates; Asamah, Janubiyah, Muharraq, Shamaliyah, Wasat

15 August 1971 (from the UK)

National Day, 16 December (1971); note - 15 August 1971 was the date of independence from the UK, 16 December 1971 was the date of independence from British protection

adopted 14 February 2002

based on Islamic law and English common law; has not accepted compulsory ICJ jurisdiction

20 years of age; universal

bicameral legislature consists of the Consultative Council (40 members appointed by the King) and the Council of Representatives or Chamber of Deputies (40 seats; members directly elected to serve four-year terms)

High Civil Appeals Court

political parties prohibited but political societies were legalized per a July 2005 law

Shia activists; Sunni Islamist legislators

ABEDA, AFESD, AMF, FAO, G-77, GCC, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, NAM, OAPEC, OIC, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO

red, the traditional color for flags of Persian Gulf states, with a white serrated band (five white points) on the hoist side; the five points represent the five pillars of Islam

With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems. The global financial crisis is likely to result in slower economic growth for Bahrain during 2009 as tight international credit and a slowing global economy cause funding for many non-oil projects to dry up. Lower oil prices may also cause Bahrain's budget to slip back into deficit.

$26.7 billion (2008 est.)

$25.17 billion (2007)

$23.29 billion (2006)

$19.68 billion (2008 est.)

6.1% (2008 est.)

8.1% (2007 est.)

6.7% (2006 est.)

$37,200 (2008 est.)

$35,500 (2007 est.)

$33,300 (2006 est.)

463,000

15% (2005 est.)

NA%

27.3% of GDP (2008 est.)

33.2% of GDP (2008 est.)

7% (2008 est.)

3.3% (2007 est.)

NA% (31 December 2008)

8.35% (31 December 2007)

$NA (31 December 2008)

$4.169 billion (31 December 2007)

$NA (31 December 2008)

$10.63 billion (31 December 2007)

$NA (31 December 2008)

$10.32 billion (31 December 2007)

$28.13 billion (31 December 2007)

fruit, vegetables; poultry, dairy products; shrimp, fish

petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism

5.1% (2008 est.)

9.233 billion kWh (2006 est.)

8.742 billion kWh (2006 est.)

0 kWh (2007 est.)

0 kWh (2007 est.)

48,610 bbl/day (2007 est.)

32,830 bbl/day (2006 est.)

238,900 bbl/day (2005)

221,500 bbl/day (2005)

124.6 million bbl (1 January 2008 est.)

11.33 billion cu m (2006 est.)

11.33 billion cu m (2006 est.)

0 cu m (2007 est.)

0 cu m (2007 est.)

92.03 billion cu m (1 January 2008 est.)

$2.269 billion (2008 est.)

$19.17 billion (2008 est.)

petroleum and petroleum products, aluminum, textiles

Saudi Arabia 3.5%, US 2.5%, UAE 2.5%

$15.64 billion (2008 est.)

crude oil, machinery, chemicals

Saudi Arabia 37.7%, Japan 7.2%, US 6.2%, Germany 4.7%, UK 4.5%, UAE 4.2%, China 4.1% (2007)

$4.865 billion (31 December 2008 est.)

$10.57 billion (31 December 2008 est.)

$15.2 billion (2008 est.)

$9.52 billion (2008 est.)

Bahraini dinars (BHD) per US dollar - 0.376 (2008 est.), 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004)

194,200 (2006)

1.116 million (2007)

AM 2, FM 3, shortwave 0 (1998)

4 (1997)

.bh

2,621 (2008)

250,000 (2007)

3 (2008)

1 (2007)

gas 20 km; oil 32 km (2008)

Mina' Salman, Sitrah

Bahrain Defense Forces (BDF): Ground Force (includes Air Defense), Naval Force, Air Force, National Guard

17 years of age for voluntary military service; 15 years of age for NCOs, technicians, and cadets; no conscription (2008)

4.5% of GDP (2006)

none