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

3.5 times the size of Washington, DC

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

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

17.01 births/1,000 population (2010 est.)

4.29 deaths/1,000 population (July 2010 est.)

0.2 migrant(s)/1,000 population (2010 est.)

2.47 children born/woman (2010 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

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, IAEA, 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

Bahrain is one of the most diversified economies in the Persian Gulf. Highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. Bahrain's economy, however, continues to depend heavily on oil. Petroleum production and refining account for more than 60% of Bahrain's export receipts, 70% of government revenues, and 11% of GDP (exclusive of allied industries). Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking. Future economic 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, is a long-term economic problem Bahrain struggles to address. In 2009, to help reduce unemployment among Bahraini nationals, Bahrain reduced sponsorship for expatriate workers, increasing the costs of employing foreign labor. The global financial crisis caused funding for many non-oil projects to dry up and resulted in slower economic growth for Bahrain. Lower oil prices also caused Bahrain's budget to slip back into deficit for the first time since 2002, prompting Bahrain to issue an emergency budget supplement and finance its deficits with bonds.

$28.31 billion (2009 est.)

$27.46 billion (2008 est.)

$25.83 billion (2007 est.)

$20.21 billion (2009 est.)

33.6% of GDP (2009 est.)

36.3% of GDP (2009 est.)

26.6% of GDP (2008 est.)

NA% (31 December 2008)

8.35% (31 December 2007)

$4.997 billion (31 December 2008)

$4.169 billion (31 December 2007)

$12.71 billion (31 December 2008)

$10.63 billion (31 December 2007)

$NA (31 December 2008)

$10.32 billion (31 December 2007)

$16.93 billion (31 December 2009)

$21.18 billion (31 December 2008)

$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

10.25 billion kWh (2007 est.)

10.1 billion kWh (2007 est.)

48,560 bbl/day (2009 est.)

39,000 bbl/day (2009 est.)

238,300 bbl/day (2007 est.)

228,400 bbl/day (2007 est.)

124.6 million bbl (1 January 2009 est.)

12.64 billion cu m (2008 est.)

92.03 billion cu m (1 January 2009 est.)

$1.362 billion (2009 est.)

$2.257 billion (2008 est.)

$12.65 billion (2009 est.)

$17.49 billion (2008 est.)

petroleum and petroleum products, aluminum, textiles

India 4.2%, Saudi Arabia 2.78% (2009)

$10.95 billion (2009 est.)

$14.25 billion (2008 est.)

crude oil, machinery, chemicals

Saudi Arabia 22.91%, France 9.76%, US 7.95%, China 6.4%, South Korea 5.26%, Japan 5.19%, Germany 5.01%, UK 4.34% (2009)

$3.465 billion (31 December 2009 est.)

$3.803 billion (31 December 2008 est.)

$10.87 billion (31 December 2009 est.)

$10.33 billion (31 December 2008 est.)

$16.18 billion (31 December 2009 est.)

$15.1 billion (31 December 2008 est.)

$10.04 billion (31 December 2009 est.)

$9.34 billion (31 December 2008 est.)

Bahraini dinars (BHD) per US dollar - 0.376 (2009), 0.376 (2008), 0.376 (2007), 0.376 (2006), 0.376 (2005)

state-run broadcast media; Bahrain Radio and Television Corporation (BRTC) operates 5 terrestrial TV networks; satellite TV systems provide access to international broadcasts; state-run BRTC broadcasts over several radio stations; 1 private FM station directs broadcasts to Indian listeners; radio and TV broadcasts from countries in the region are available (2007)

gas 20 km; oil 32 km (2009)

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 (2010)