Bahrain

Phone Code: 00973

Root-level Domain Code: .bh

CIA Info

Background: In 1782, 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 Shi'a community and Shi'a political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shi'a political society, won the largest number of seats in the elected chamber of the legislature. However, Shi'a discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.

Economy Overview: 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. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, Bahrain and the US in August 2006 implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Unemployment, especially among the young, and the depletion of oil and underground water resources are major long-term economic problems.

Geography Note: 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

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

Natural Resources: oil, associated and nonassociated natural gas, fish, pearls

Geographic Coordinates: 26 00 N, 50 33 E

Loading Map....

Write Something Under This Category