History

Bahrain has a rich pre-Islamic history —the first settlements are thought to date back to 10000 BC. Archaeologists have identified the islands as the site of the lost civilization of Dilmun, mentioned in Assyrian, Babylonian and Sumerian inscriptions that are 5,000 years old. The large number of burial mounds scattered around the island indicate an ancient and well-developed social and economic structure. Greeks settled on the islands from the time of Alexander the Great, and the Portuguese occupied the area for about 100 years until 1602.

The Al-Khalifa family first came to Bahrain in the mid-18th century. Under their rule Bahrain became a British protectorate in 1861. In 1971 Sheikh Isa bin Suman Al Khalifa, the present ruler’s father, declared independence, but also signed a treaty of friendship with Britain, which has ensured excellent relations to this day.

Politics

The Kingdom of Bahrain, now a constitutional monarchy, has a democratically elected parliament and a Shura council with legislative powers equal to those of parliament. The Amir (king) of Bahrain is Sheikh Hamad Bin Isa Al Khalifa and the prime minister is his uncle Sheikh Khalifa bin Salman Ali Khalifa. Both rule through consultation with ministers. The judiciary system is relatively independent of the government and is based on diverse legal sources, including Shi’a and Sunni Islamic law. Shortly after gaining independence in 1971, Bahrain joined the United Nations and the Arab League. Ten years later it got together with five neighbouring states (Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) to form the Gulf Co-operation Council (GCC).

Religion

Islam is the main religion, practised by 85% of the population. Freedom of worship is permitted to member of other faiths, including Hindus, Parsees, Jews, Buddhists and Christians.

Economy

From the time of ancient Dilmun, Bahrain has been a major trading hub, but its natural pearl industry traditionally provided a major source of employment and revenue as well. When oil was found in 1932, it proved to be a turning point for the economy, resulting in rapid social and economic development. As the oil resources become depleted, the country is diversifying into a commercial and financial hub—it is home to many offshore banking units. Bahrain is now well established as a regional financial and business centre.

The Kingdom has a mixed economy, with the government still in control of many basic industries, including oil and aluminium. Bahrain benefited from the region’s economic boom in the late ’70s and ’80s, and during that time the government emphasised infrastructure development and other projects to improve the standard of living—health, education, housing, electricity, water, transportation and telecommunications all received attention. Recently, regional tourism has also become a significant source of income.

Population

Bahrain’s population is approximately 600,000, 150,000 of whom are foreign nationals resident in the country.

The indigenous people—66% of the inhabitants—originate from the Arabian Peninsula (73%) and elsewhere around the Gulf (9%). Minorities and foreign residents include other Arabs, Iranians, Indians, Pakistanis and small groups of East Asians and Europeans. Most of the population of the country is concentrated in the two principle cities, Manama and Al Muharraq, and live in the northern third of the main island. Approximately 60% of the population is below 25 years of age, and the annual population growth rate is estimated at 3.6%.