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Bahrain-DEVELOPMENTS SINCE INDEPENDENCE





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Bahrain Index

Since the early 1970s, increased oil production and regional instability have dominated events in the Persian Gulf. Revenues from the oil industry grew dramatically after oil producers raised their prices unilaterally in 1973; as a result, funds available to gulf rulers increased. Governments began massive development projects that brought rapid material and social change. As of 1993, the turmoil that these changes caused had not yet stabilized. Those states that had benefited longest from oil money, such as Kuwait and Bahrain, made the greatest progress in adjusting to the new oil wealth. Oman--which has used its oil reserves only since the early 1970s and which had suffered under the repressive policies of Said ibn Taimur--saw substantially less progress.

The Iranian Revolution of 1979 challenged gulf stability. Many gulf leaders agreed with some of the social goals of the revolution and its efforts to tie Iran more firmly to its Islamic roots. But Iran's desire to spread the movement beyond its borders clearly threatened gulf leaders. Furthermore, several gulf states have significant Shia or Iranian minorities (Bahrain has a Shia majority although the ruling family is Sunni), and gulf rulers feared that Iran would use ethnic or sectarian loyalties to stir up such minorities.

As of 1993, however, Shia of the western gulf had not responded enthusiastically to the Iranian call. Kuwait and Bahrain, which have the largest Shia populations, experienced some limited pro-Iranian demonstrations in 1979. In general, however, Shia in both these states feel that they have more to gain by supporting the existing regimes than by supporting the convulsive changes that have taken place in Iran.

Iran was perhaps more threatening to gulf stability because of its strong anti-Western stance in world and in regional politics. The new Iranian position stood in stark contrast to the gulf amirs' long history of involvement with the British and the close ties to the West that the oil industry entailed. Thus, the Iranian political worldview was one to which rulers in the gulf states could not subscribe.

In 1980 the outbreak of the Iran-Iraq War made the Iranian threat more concrete. For the first six years of the conflict, the gulf states sought to mediate between the two countries and to remain neutral. Their position changed, however, in 1986, when fighter aircraft attacked tankers belonging to Saudi Arabia and Kuwait. Whether Iran or Iraq was responsible for the first attacks remains uncertain, but the gulf states decided to blame the Iranians and began to take Iraq's side in the war. Iran responded by opening up a limited secret campaign against the gulf states. A number of explosions occurred in Kuwait and Bahrain for which many believed Iran was responsible. Such attacks made all the states in the region more concerned about external threats.

In 1981, partly in response to these concerns, Kuwait, Bahrain, Saudi Arabia, Qatar, Oman, and the UAE formed the Gulf Cooperation Council (GCC) (see Collective Security under the Gulf Cooperation Council , ch. 7). The goal of the GCC has been to provide for regional defense and to coordinate policy on trade and economic issues. Although the GCC has taken steps to increase the military capabilities of various members, the region has remained dependent to a great extent on the protection of the Western powers. For instance, when the Iran-Iraq War made the gulf unsafe for oil tankers in the late 1980s, it was ships from Europe and the United States that protected shipping and cleared the area of mines.

Whereas broader, regional alliances in the gulf have changed dramatically since the 1970s, individual political systems have remained relatively unchanged. All the gulf countries grant ultimate power to a single family, whose leading member rules as amir, but they also provide for an advisory body whose members are drawn from outside the royal family. Kuwait and Bahrain have gone beyond this and have set up separate parliaments with limited power to draft legislation. However, the Al Sabah and the Al Khalifa have sometimes dissolved these bodies; thus, it remains uncertain whether parliaments will become a permanent feature of gulf politics.

The ruling families' hold on power has been challenged at various times. More problematic is the manner in which the gulf states have distributed individual citizenship. Since the 1930s, the population has increased dramatically because of the oil boom, but the number of citizens has not increased correspondingly. Most of the gulf states place restrictions on citizenship, requiring that an individual trace his or her roots in the country to before 1930. Accordingly, the millions of people that have poured into the region since the 1940s have only partial legal status and lack political rights in the countries in which they reside. Although they may have lived there for two generations, they can be asked to leave at any time.

Data as of January 1993



BackgroundIn 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.
LocationMiddle East, archipelago in the Persian Gulf, east of Saudi Arabia
Area(sq km)total: 741 sq km
land: 741 sq km
water: 0 sq km
Geographic coordinates26 00 N, 50 33 E
Land boundaries(km)0 km

Coastline(km)161 km

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

Elevation extremes(m)lowest point: Persian Gulf 0 m
highest point: Jabal ad Dukhan 122 m
Natural resourcesoil, associated and nonassociated natural gas, fish, pearls
Land use(%)arable land: 2.82%
permanent crops: 5.63%
other: 91.55% (2005)

Irrigated land(sq km)40 sq km (2003)
Total renewable water resources(cu km)0.1 cu km (1997)
Freshwater withdrawal (domestic/industrial/agricultural)total: 0.3 cu km/yr (40%/3%/57%)
per capita: 411 cu m/yr (2000)
Natural hazardsperiodic droughts; dust storms
Environment - current issuesdesertification 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)
Environment - international agreementsparty to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands
signed, but not ratified: none of the selected agreements
Geography - noteclose 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
Population727,785
note: includes 235,108 non-nationals (July 2009 est.)
Age structure(%)0-14 years: 25.9% (male 95,224/female 93,241)
15-64 years: 70.2% (male 292,941/female 217,729)
65 years and over: 3.9% (male 15,106/female 13,544) (2009 est.)
Median age(years)total: 30.1 years
male: 33.2 years
female: 26.7 years (2009 est.)
Population growth rate(%)1.285% (2009 est.)
Birth rate(births/1,000 population)17.02 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)4.37 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)0.2 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 89% of total population (2008)
rate of urbanization: 1.8% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.03 male(s)/female
under 15 years: 1.02 male(s)/female
15-64 years: 1.34 male(s)/female
65 years and over: 1.12 male(s)/female
total population: 1.24 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 15.25 deaths/1,000 live births
male: 17.81 deaths/1,000 live births
female: 12.61 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 75.16 years
male: 72.64 years
female: 77.76 years (2009 est.)

Total fertility rate(children born/woman)2.5 children born/woman (2009 est.)
Nationalitynoun: Bahraini(s)
adjective: Bahraini
Ethnic groups(%)Bahraini 62.4%, non-Bahraini 37.6% (2001 census)

Religions(%)Muslim (Shia and Sunni) 81.2%, Christian 9%, other 9.8% (2001 census)
Languages(%)Arabic, English, Farsi, Urdu

Country nameconventional long form: Kingdom of Bahrain
conventional short form: Bahrain
local long form: Mamlakat al Bahrayn
local short form: Al Bahrayn
former: Dilmun
Government typeconstitutional monarchy
Capitalname: Manama
geographic coordinates: 26 14 N, 50 34 E
time difference: UTC+3 (8 hours ahead of Washington, DC during Standard Time)
Administrative divisions5 governorates; Asamah, Janubiyah, Muharraq, Shamaliyah, Wasat
note: each governorate administered by an appointed governor
Constitutionadopted 14 February 2002

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

Suffrage20 years of age; universal
Executive branchchief of state: King HAMAD bin Isa Al-Khalifa (since 6 March 1999); Heir Apparent Crown Prince SALMAN bin Hamad Al-Khalifa (son of the monarch, born 21 October 1969)
head of government: Prime Minister KHALIFA bin Salman Al-Khalifa (since 1971); Deputy Prime Ministers ALI bin Khalifa bin Salman Al-Khalifa, MUHAMMAD bin Mubarak Al-Khalifa, Jawad al-ARAIDH
cabinet: Cabinet appointed by the monarch
elections: the monarchy is hereditary; prime minister appointed by the monarch

Legislative branchbicameral 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)
elections: Council of Representatives - last held November-December 2006 (next election to be held in 2010)
election results: Council of Representatives - percent of vote by society - NA; seats by society - al Wifaq (Shia) 17, al Asala (Sunni Salafi) 5, al Minbar (Sunni Muslim Brotherhood) 7, independents 11; note - seats by society as of February 2007 - al Wifaq 17, al Asala 8, al Minbar 7, al Mustaqbal (Moderate Sunni pro-government) 4, unassociated independents (all Sunni) 3, independent affiliated with al Wifaq (Sunni oppositionist) 1

Judicial branchHigh Civil Appeals Court

Political pressure groups and leadersShia activists; Sunni Islamist legislators
other: several small leftist and other groups are active
International organization participationABEDA, 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
Flag descriptionred, 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

Economy - overviewWith 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.
GDP (purchasing power parity)$26.89 billion (2008 est.)
$25.29 billion (2007 est.)
$23.34 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate)$21.24 billion (2008 est.)
GDP - real growth rate(%)6.3% (2008 est.)
8.4% (2007 est.)
6.7% (2006 est.)
GDP - per capita (PPP)$37,400 (2008 est.)
$35,700 (2007 est.)
$33,400 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 0.4%
industry: 66.2%
services: 33.3% (2008 est.)
Labor force557,000
note: 44% of the population in the 15-64 age group is non-national (2008 est.)

Labor force - by occupation(%)agriculture: 1%
industry: 79%
services: 20% (1997 est.)
Unemployment rate(%)15% (2005 est.)
Population below poverty line(%)NA%
Household income or consumption by percentage share(%)lowest 10%: NA%
highest 10%: NA%
Investment (gross fixed)(% of GDP)26.6% of GDP (2008 est.)
Budgetrevenues: $6.934 billion
expenditures: $5.612 billion (2008 est.)
Inflation rate (consumer prices)(%)7% (2008 est.)
3.3% (2007 est.)

Stock of money$NA (31 December 2008)
$4.169 billion (31 December 2007)
Stock of quasi money$NA (31 December 2008)
$10.63 billion (31 December 2007)
Stock of domestic credit$NA (31 December 2008)
$10.32 billion (31 December 2007)
Market value of publicly traded shares$21.18 billion (31 December 2008)
$28.13 billion (31 December 2007)
$21.12 billion (31 December 2006)
Economic aid - recipient$103.9 million (2004)

Public debt(% of GDP)28.7% of GDP (2008 est.)
63.8% of GDP (2004 est.)
Agriculture - productsfruit, vegetables; poultry, dairy products; shrimp, fish
Industriespetroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism

Industrial production growth rate(%)6.3% (2008 est.)

Current account balance$2.257 billion (2008 est.)
$2.907 billion (2007 est.)
Exports$17.49 billion (2008 est.)
$13.79 billion (2007 est.)

Exports - commodities(%)petroleum and petroleum products, aluminum, textiles
Exports - partners(%)Saudi Arabia 3.4%, India 2.7%, UAE 2.2% (2008)
Imports$14.25 billion (2008 est.)
$10.93 billion (2007 est.)

Imports - commodities(%)crude oil, machinery, chemicals
Imports - partners(%)Saudi Arabia 26.7%, Japan 8.9%, US 7.8%, China 6.2%, Germany 4.8%, South Korea 4.7%, UK 4.5% (2008)

Reserves of foreign exchange and gold$3.803 billion (31 December 2008 est.)
$4.101 billion (31 December 2007 est.)
Debt - external$10.33 billion (31 December 2008 est.)
$7.858 billion (31 December 2007 est.)

Stock of direct foreign investment - at home$15.01 billion (31 December 2008 est.)
$13.31 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad$9.34 billion (31 December 2008 est.)
$7.72 billion (31 December 2007 est.)
Exchange ratesBahraini dinars (BHD) per US dollar - 0.376 (2008 est.), 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004)

Currency (code)Bahraini dinar (BHD)

Telephones - main lines in use220,000 (2008)
Telephones - mobile cellular1.4 million (2008)
Telephone systemgeneral assessment: modern system
domestic: modern fiber-optic integrated services; digital network with rapidly growing use of mobile-cellular telephones
international: country code - 973; landing point for the Fiber-Optic Link Around the Globe (FLAG) submarine cable network that provides links to Asia, Middle East, Europe, and US; tropospheric scatter to Qatar and UAE; microwave radio relay to Saudi Arabia; satellite earth station - 1 (2007)
Internet country code.bh
Internet users402,900 (2008)
Airports3 (2009)
Pipelines(km)gas 20 km; oil 32 km (2008)
Roadways(km)total: 3,498 km
paved: 2,768 km
unpaved: 730 km (2003)

Ports and terminalsMina' Salman, Sitrah
Military branchesBahrain Defense Forces (BDF): Ground Force (includes Air Defense), Naval Force, Air Force, National Guard
Military service age and obligation(years of age)17 years of age for voluntary military service; 15 years of age for NCOs, technicians, and cadets; no conscription (2008)
Manpower available for military servicemales age 16-49: 210,938
females age 16-49: 170,471 (2008 est.)
Manpower fit for military servicemales age 16-49: 171,004
females age 16-49: 144,555 (2009 est.)
Manpower reaching militarily significant age annuallymale: 6,612
female: 6,499 (2009 est.)
Military expenditures(% of GDP)4.5% of GDP (2006)
Disputes - internationalnone

Trafficking in personscurrent situation: Bahrain is a destination country for men and women trafficked for the purposes of involuntary servitude and commercial sexual exploitation; men and women from Africa, South Asia, and Southeast Asia migrate voluntarily to Bahrain to work as laborers or domestic servants where some face conditions of involuntary servitude such as unlawful withholding of passports, restrictions on movements, non-payment of wages, threats, and physical or sexual abuse; women from Thailand, Morocco, Eastern Europe, and Central Asia are trafficked to Bahrain for the purpose of commercial sexual exploitation
tier rating: Tier 2 Watch List - Bahrain is on the Tier 2 Watch List for failing to show evidence of increased efforts to combat human trafficking, particularly efforts that enforce laws against trafficking in persons, and that prevent the punishment of victims of trafficking; during 2007, Bahrain passed a comprehensive law prohibiting all forms of trafficking in persons; the government also established a specialized anti-trafficking unit within the Ministry of Interior to investigate trafficking crimes; however, the government did not report any prosecutions or convictions for trafficking offenses during 2007, despite reports of a substantial problem of involuntary servitude and sex trafficking (2008)
Electricity - production(kWh)10.25 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)
Electricity - consumption(kWh)10.1 billion kWh (2007 est.)
Electricity - exports(kWh)0 kWh (2008 est.)
Electricity - imports(kWh)0 kWh (2008 est.)
Oil - production(bbl/day)48,520 bbl/day (2008 est.)
Oil - consumption(bbl/day)38,000 bbl/day (2008 est.)
Oil - exports(bbl/day)238,300 bbl/day (2007 est.)
Oil - imports(bbl/day)228,400 bbl/day (2007 est.)
Oil - proved reserves(bbl)124.6 million bbl (1 January 2009 est.)
Natural gas - production(cu m)12.64 billion cu m (2008 est.)
Natural gas - consumption(cu m)12.64 billion cu m (2008 est.)
Natural gas - exports(cu m)0 cu m (2008)
Natural gas - proved reserves(cu m)92.03 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)0.2% (2001 est.)
HIV/AIDS - people living with HIV/AIDSfewer than 600 (2007 est.)
HIV/AIDS - deathsfewer than 200 (2003 est.)
Literacy(%)definition: age 15 and over can read and write
total population: 86.5%
male: 88.6%
female: 83.6% (2001 census)

School life expectancy (primary to tertiary education)(years)total: 15 years
male: 14 years
female: 16 years (2006)
Education expenditures(% of GDP)3.9% of GDP (1991)








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