OFFICIAL NAME:
Kingdom of Bahrain

Geography
Area:
710 sq. km. ( 274 sq. mi.); approximately four times the size of
Washington, D.C. Bahrain is an archipelago of 36 islands located off
the eastern coast of Saudi Arabia. The four main islands are joined by
causeways, and make up about 95% of the total land area.
Cities: Capital--Manama, pop. (2002 est.) 148,000. Other cities--Al Muharraq.
Terrain: Low desert plain (highest elevation point–122 m).
Climate:
Hot and humid from May-September, with average highs ranging from 30-40
C (86-104 F). Maximum temperatures average 20-30C (68-86F) the
remainder of the year.

People
Nationality: Noun and adjective--Bahraini(s).
Population (July 2003 est.): 667,238, including about 235,108 non-nationals.
Annual growth rate: 1.61%.
Ethnic groups: Bahraini 63%, Asian 19%, other Arab 10%, Iranian 8%.
Religions: 98% Muslim (Shi’a 70%, Sunni 30%), with small Christian, Jewish and Hindu communities.
Languages: Arabic (official), English, Farsi, and Urdu are also widely spoken.
Education: Education
is not compulsory, but is provided free to Bahrainis and non-nationals
at all levels, including higher education. Estimated net primary school
attendance (1991-2001)--84%. Adult Literacy (age 15 and over) (2003 est.)--89.1% for the overall population (male 91.9% female 85%).
Health: Infant mortality rate--19.02 deaths/1,000 live births. Life expectancy--71 yrs. males, 76 yrs. females.
Work force (2001): 307,000 of which 59% are foreigners and 20.8% female..

Government
Type: Constitutional Monarchy.
Independence: August 15, 1971 (from the UK).
Constitution:
Approved and promulgated May 26, 1973; suspended on August 26, 1975;
amended and approved by a national popular referendum again on February
14-15, 2001.
Branches: Executive--King (chief of state);
Prime Minister (head of government); Council of Ministers (cabinet) is
appointed by the King and headed by the Prime Minister.
Legislative--The
bicameral parliament (al-Majlis al-Watani) consists of a 40-member
elected House of Deputies and a 40-member Shura Council appointed by
the King. Members of both chambers serve four-year terms.  Judicial--High Civil Appeals Court. The judiciary is independent with right of judicial review.
Administrative
subdivisions: 12 municipalities (manatiq): Al Hidd, Al Manamah, Al
Mintaqah al Gharbiyah, Al Mintaqah al Wusta, Al Mintaqah ash
Shamaliyah, Al Muharraq, Ar Rifa' wa al Mintaqah al Janubiyah, Jidd
Hafs, Madinat Hamad, Madinat 'Isa, Juzur Hawar, Sitrah.
Political parties: None. Formal parties are banned but political societies have been formally sanctioned since 2001.
Suffrage: Universal at age 18.

Economy
GDP (2002): $7.7 billion.
Real GDP Growth Rate (2002 est.): 5.1%.
Per capita GDP (2002 est.): $14,000.
Natural resources: Oil, natural gas, fish, pearls.
Agriculture (less than 1% of GDP): Products--With the exception of eggs, vegetables, dates, and fish, most food is imported.
Industry: Types--oil and gas (16.5 % of GDP), manufacturing (12.2% of GDP), , aluminum.
Services: Finance (15.7 % of GDP), transport and communications (8.9% of GDP), real estate (7.8% of GDP), .
Government Services(10.4% of GDP).
Trade (2002--about 13.3 % of GDP): Exports--$5.8 billion: oil and other mineral products, base metals, textiles. Major markets--India (4.5 %), U.S. (3.2%), Saudi Arabia (2.3%), Japan (1.7%), South Korea (1.7%). Imports--$5.0 billion: crude oil, machinery and appliances, transport equipment, foodstuffs. Major suppliers--Saudi Arabia (30.2%), U.S. (11.7%), France (7.1%), U.K. (6.1%),Germany (5.6%).

HISTORY
The
site of the ancient Bronze Age civilization of Dilmun, Bahrain was an
important center linking trade routes between Mesopotamia and the Indus
Valley as early as 5,000 years ago. The Dilmun civilization began to
decline about 2,000 B.C. as trade from India was cut off. From 750 B.C.
on, Assyrian kings repeatedly claimed sovereignty over the islands.
Shortly after 600 B.C., Dilmun was formally incorporated into the new
Babylonian empire. There are no historical references to Bahrain until
Alexander the Great’s arrival in the Gulf in the 4th century B.C.
Although Bahrain was ruled variously by the Arab tribes of Bani Wa’el
and Persian governors, Bahrain continued to be known by its Greek name
Tylos until the 7th century, when many of its inhabitants converted to
Islam. A regional pearling and trade center, Bahrain came under the
control of the Ummayad Caliphs of Syria, the Abbasid Caliphs of
Baghdad, Persian, Omani and Portuguese forces at various times from the
7th century until the Al Khalifa family, a branch of the Bani Utbah
tribe that have ruled Bahrain since the 18th century, succeeded in
capturing Bahrain from a Persian garrison controlling the islands in
1783.

In
the 1830s the Al Khalifa signed the first of many treaties establishing
Bahrain as a British Protectorate. Similar to the binding treaties of
protection entered into by other Persian Gulf principalities, the
agreements entered into by the Al Khalifa prohibited them from
disposing of territory and entering into relationships with any foreign
government without British consent in exchange for British protection
against the threat of military attack from Ottoman Turkey. The main
British naval base in the region was moved to Bahrain in 1935 shortly
after the start of large-scale oil production. from all aggression by
sea and to lend support in case of land attack.

In
1968, when the British Government announced its decision (reaffirmed in
March 1971) to end the treaty relationships with the Persian Gulf
sheikdoms, Bahrain initially joined the other eight states (Qatar and
the seven Trucial Sheikhdoms now the United Arab Emirates) under
British protection in an effort to form a union of Arab emirates. The
nine sheikhdoms still had not agreed on terms of union by 1971,
however, prompting. Bahrain to declare itself fully independent on
August 15, 1971.

Bahrain
promulgated a constitution and elected its first parliament in 1973,
but just two years later, in August 1975, the Amir disbanded the
National Assembly after it attempted to legislate the end of Al-Khalifa
rule and the expulsion of the U.S. Navy from Bahrain. In the 1990s,
Bahrain suffered from repeated incidents of political violence stemming
from the disaffection of the Shi’a majority. In response, , the Amir
instituted the first Bahraini cabinet change in 20 years in 1995 and
also and increased the membership of the Consultative Council, which he
had created in 1993 to provide advice and opinion on legislation
proposed by the cabinet and, in certain cases, suggest new laws on its
own, from 30 to 40 the following year. . These steps led to an initial
decline in violent incidents, but in early 1996 a number of hotels and
restaurants were bombed, resulting in several fatalities. Over 1,000
people were arrested and held in detention without trial in connection
with these disturbances. The government has since released these
individuals (see Government and Political Conditions Section below for
details).

GOVERNMENT AND POLITICAL CONDITIONS
Shaikh
Hamad bin Isa Al Khalifa succeeded the throne in March 1999, after the
death of his father Shaikh Isa bin Hamad Al Khalifa, Bahrain’s ruler
since 1961. He championed a program of democratic reform shortly after
his succession. In November 2000, Shaikh Hamad established a committee
to create a blueprint to transform Bahrain from a hereditary emirate to
a constitutional monarchy within 2 years. The resulting “National
Action Charter” was presented to the Bahraini public in a referendum in
February 2001. In the first comprehensive public vote in Bahrain since
the 1970s, 94.8% of voters overwhelmingly endorsed the charter . That
same month, Shaikh Hamad pardoned all political prisoners and
detainees, including those who had been imprisoned, exiled or detained
on security charges. He also abolished the State Security Law and the
State Security Court, which had permitted the government to detain
individuals without trial for up to 3 years.

On
February 14, 2002, one year after the referendum endorsing his
National Action Charter, Shaikh Hamad pronounced Bahrain a
constitutional monarchy and changed his status from Amir to King. He
simultaneously announced that the first municipal elections since 1957
would be held in May 2002, and that a bicameral parliament, with a
representative lower house, would be reconstituted with parliamentary
elections in October 2002. As part of these constitutional reforms, the
government also created an independent financial watchdog empowered to
investigate cases of embezzlement and violations of state expenditure
in July 2002.

Turnout
for the May 2002 municipal elections was 51%, with female voters making
up 52 % percent of voters. Turnout for the 2002 parliamentary
elections--the first in almost three decades--was 53% in the first
round and 43% in the second round, despite the fact that the
four-largest Shi’a political societies organized a boycott to protest
constitutional amendments enacted by the King that gave the appointed
upper chamber of parliament voting rights equal to the elected lower
chamber. Sunni Islamists won 19 of the 40 seats. Despite strong
participation by female voters, none of the female candidates standing
in these elections won a parliamentary seat. The new parliament held
its first joint sitting in December 2002.

Bahrain
has a complex system of courts, based on diverse legal sources,
including Sunni and Shi'a Sharia (religious law), tribal law, and other
civil codes and regulations created with the help of British advisers
in the early 20th century. In 2001, Shaikh Hamad created the Supreme
Judicial Council to regulate these courts and separate the
administrative and judicial branches of government.

Principal Government Officials
King--Shaikh Hamad bin Isa Al Khalifa
Crown Prince and Commander in Chief of the Bahrain Defense Force--Shaikh Salman bin Hamad Al Khalifa
Prime Minister--Shaikh Khalifa bin Salman Al Khalifa
Deputy Prime Minister and Islamic Affairs Minister--Shaikh Abdullah bin Khaled Al Khalifa
Deputy Prime Minister and Foreign Minister--Shaikh Mohammad bin Mubarak Al Khalifa

Ambassador to the United States--Shaikh Khalifa bin Ali Al-Khalifa
Ambassador to the United Nations--Tawfeeq al-Ahmed al-Mansoor

Bahrain maintains an embassy
in the United States at 3502 International Drive N.W., Washington, D.C.
20008; tel: [1] (202) 342-1111; fax: [1] (202) 362-2192. The Bahraini
Mission to the UN is located at866 Second Avenue, New York, NY 10017;
tel: [1] (212)223-6200; fax [1] (202) 319-0687.

PEOPLE
Bahrain
is one of the most densely populated countries in the Middle East;
about 89% of the population lives in the two principal cities of Manama
and Al Muharraq. Approximately 66% of the indigenous population is
originally from the Arabian Peninsula and Iran. Bahrain currently has a
sizeable foreign labor force (about 38% of the total population). The
government’s policies on naturalization remain controversial. In June
2002, the King issued a decree allowing citizens of the Gulf
Cooperation Council (GCC) to take up dual Bahraini nationality.
Opposition political groups charge that the government is granting
citizenship to foreign nationals who have served in the Bahraini armed
forces and security services to alter the demographic balance of the
country, which is primarily Shi’a. According to passport officials,
about 40,000 individuals have been naturalized over the past 50 years
(about 10% of the total population).

The
indigenous population is 98% Muslim. Although more than two-thirds of
the indigenous population is Shi’a Muslim, the ruling family and the
majority of government, military, and corporate leaders are Sunni
Muslims. The small indigenous Christian and Jewish communities make up
the remaining 2% of the population. Roughly half of foreign resident
community are non-Muslim, and include Christians, Hindus, Baha’is,
Buddhists and Sikhs.

Bahrain
has invested its oil revenues in developing an advanced educational
system. The first public schools for girls and boys were opened in the
1920s. The government continues to pay for all schooling costs.
Although school attendance is not compulsory, primary and secondary
attendance rates are high, and literacy rates are currently among the
highest in the region. Higher education is available for secondary
school graduates at the Bahrain University, Arabian Gulf University and
specialized institutes including the College of Health Sciences --
operating under the direction of the Ministry of Health -- which trains
physicians, nurses, pharmacists, and paramedics. The government has
identified providing educational services to the Gulf Cooperation
Council as a potential economic growth area, and is actively working to
establish Bahrain as a regional center for higher education.

ECONOMY
The
first Gulf state to discover oil, Bahrain has worked to diversify its
economy over the past decade. Bahrain has stabilized its oil production
at about 40,000 barrels per day (b/d), and reserves are expected to
last 10-15 years. Revenues from oil and natural gas currently account
for 16.5% of GDP and provide about 60% of government income.  The
Bahrain Oil Company refinery built in 1935, the first in the Gulf, has
a capacity of about 250,000 b/d. Since 1980, 60% of the refinery has
been owned by the Bahrain National Oil Company and 40% by the U.S.
company Caltex. Saudi Arabia provides most of the crude for refinery
operation via pipeline. Through an agreement with Saudi Arabia, Bahrain
also receives a large portion of the net output and revenues from Saudi
Arabia's Abu Saafa offshore oilfield. The Bahrain National Gas Company
operates a gas liquefaction plant that utilizes gas piped directly from
Bahrain's oilfields. Gas reserves should last about 50 years at present
rates of consumption. The Gulf Petrochemical Industries Company is a
joint venture of the petrochemical industries of Kuwait, the Saudi
Basic Industries Corporation, and the Government of Bahrain. The plant,
completed in 1985, produces ammonia and methanol for export. Growth in
the hydrocarbons sector will be contingent upon new discoveries --
Bahrain awarded exploration rights to Malaysia’s Petronas and the U.S.’
Chevron Texaco after the resolution of Bahrain’s long-standing
territorial dispute with Qatar, but no meaningful finds have been
announced to date. Bahrain's other industries include the majority
state-owned Aluminum Bahrain (Alba), which operates the largest
aluminum smelter in the world outside Eastern Europe with an annual
production of about 307,000 metric tons (mt)--and related factories,
such as the Aluminum Extrusion Company and the Gulf Aluminum Rolling
Mill. Other plants include the Arab Iron and Steel Company's iron ore
pelletizing plant (4 million tons annually) and a shipbuilding and
repair yard.

Bahrain's
development as a major financial center has been the most widely
heralded aspect of its diversification effort. Bahrain is a regional
financial and business center; international financial institutions
operate in Bahrain, both offshore and onshore, without impediments, and
the financial sector is currently the second largest contributor to
GDP. More than 100 offshore banking units and representative offices
are located in Bahrain, as well as 65 American firms. Bahrain has also
made a concerted effort to become the leading Islamic finance center in
the world, standardizing regulations of the Islamic banking industry.
It currently has 26 Islamic banks – the largest concentration of
Islamic financial institutions.

Bahrain
is working to develop other service industries such as information
technology, healthcare and education. The government has used its oil
revenues to build an advanced infrastructure in transportation and
telecommunications. The transport and communications sector grew by
almost 9% in 2002 and is likely to expand as the government proceeds
with liberalization of the state-owned telecommunications industry. The
state monopoly – Batelco – was broken in April 2003. Bahrain's
international airport is one of busiest in the Gulf, serving an average
of 580 flights a week. A new air traffic control tower, part of a
program to upgrade and modernize the airport, is due for completion in
June 2004. A modern, busy port offers direct and frequent cargo
shipping connections to the U.S., Europe, and the Far East.

Liberalization of the water and power industries is also planned.

Regional
tourism is also a significant source of income. The government
continues to favor large-scale tourism projects. In 2003 it awarded
several contracts to develop a state-of-the art international horse
racing track and tourist complex.

Government
revenues continue to be largely dependent on the oil industry. Bahrain
has received significant budgetary support and project grants from
Saudi Arabia, Kuwait, and the United Arab Emirates. The reconstituted
parliamentary process has produced spirited debate over government
spending, particularly defense spending, but no actual reductions.
Ministry of Defense spending will account for 20% of current spending
in 2003 and 2004 based on the budget approved by parliament in May
2003. The Ministry of Education and Ministry of the Interior are the
second and third largest spenders. The bulk of capital outlays have
been allocated to improving housing and infrastructure in line with
government efforts to raise the standard of living of the Shi’a
population and to attract foreign investment.

The
government has also started to extend protections to workers. Private
sector employees won permission to form unions in late 2002; King Hamad
has given his tentative approval for the formation of unions in
government departments.

DEFENSE
The
Bahrain Defense Force (BDF) numbers about 9,000 personnel and consists
of army, navy, air force, air defense, and royal guard units. The
public security forces and the coast guard are separate from the BDF
and report to the Ministry of the Interior. Bahrain's defense spending
since 1999 has been steady. The government spends around $440 million
annually on their military, about 20% of current expenditures. The
reconstituted parliamentary process has produced spirited debate over
government spending, particularly defense spending, but no actual
reductions.

With
the help of the U.S. and the Gulf Cooperation Council (GCC), Bahrain
has made significant efforts to upgrade its defense systems and
increase the modernity of its armed forces over the last 20 years. In
1982, the GCC gave Bahrain $1.7 billion for this purpose. Since the
1991 Gulf War, the U.S. has provided military and defense technical
assistance and training to Bahrain from foreign military sales (FMS),
commercial sources, excess defense article sales (EDA) and under the
International Military and Education Training (IMET) program. The U.S.
Office of Military Cooperation in Bahrain is attached to the U.S.
Embassy and manages the security assistance mission. U.S. military
sales to Bahrain currently total $1.6 billion. Principal U.S. military
systems purchased by the BDF include eight Apache helicopters, 54 M60A3
tanks, 12 F-16C/D aircraft, 14 Cobra helicopters, and the TPS-59 radar
system. Bahrain has received $200 million in U.S. EDA since 1995.

Joint air and ground exercises have been planned and executed to increase readiness throughout the Gulf.

FOREIGN RELATIONS
Since
achieving independence in 1971, Bahrain has pursued a policy of close
consultation with neighboring states. Bahrain became a member of the
United Nations and the Arab League in 1971. In 1981 it joined its five
neighbors--Saudi Arabia, Oman, Kuwait, the UAE and Qatar–-to form the
strategic Gulf Cooperation Council (GCC). Bahrain has complied with GCC
efforts steps to coordinate economic development and defense and
security planning. In December 1994, for example, Bahrain concurred
with the GCC decision to drop secondary and tertiary boycotts against
Israel. Bahrain also responded positively to Kuwait’s request to deploy
the GCC collective defense force, “Peninsula Shield,” during the build
up and execution of Operation Iraqi Freedom (OIF) in 2003.

In
addition to maintaining strong relations with its largest financial
backers, Saudi Arabia, Kuwait and the UAE, Bahrain has worked to
improve its relations with Qatar and Iran in recent years. Bahrain-Iran
relations have been strained since the discovery in 1981 of an
Iran-sponsored coup plot in Bahrain. Bahraini suspicions of the Iranian
role in local unrest in the mid-1990s remain. However, with the fall of
Saddam Hussein’s regime in Iraq, Bahrain has begun taking steps to
improve relations with Iran. These efforts have included encouraging
Bahrain-Iran trade and maritime security cooperation.

On
March 16, 2001, the International Court of Justice (ICJ) announced its
judgment on the long-standing maritime delimitation and territorial
dispute between Bahrain and Qatar. The binding judgment awarded
sovereignty over the Hawar Islands and Qit’at Jaradah to Bahrain and
sovereignty over Zubarah (part of the Qatar Peninsula), Janan Island
and Fasht ad Dibal to Qatar. The peaceful settlement of this dispute
has allowed for renewed co-operation.

Bahrain’s
strategic partnership with the U.S. has intensified since 1991.
Bahraini pilots flew strikes in Iraq during the 1991 Gulf War, and the
island was used as a base for military operations in the Gulf. Bahrain
also provided logistical and basing support to international Maritime
Interdiction efforts to enforce UN sanctions and prevent illegal
smuggling of oil from Iraq in the 1990s. Bahrain also provided
extensive basing and over flight clearances for a multitude of U.S.
aircraft operating in support of Operations Enduring Freedom and Iraqi
Freedom. Bahrain is currently offering humanitarian support and
technical training to support the reconstruction of the Iraqi banking
sector. Bahrain has also cooperated effectively on criminal
investigation issues in support of the campaign on terrorism; the
Bahrain Monetary Agency moved quickly to restrict terrorists' ability
to transfer funds through Bahrain's financial system.

U.S.-BAHRAINI RELATIONS
The
American Mission Hospital, affiliated with the National Evangelical
Church, has operated continuously in Bahrain for more than a century.
Bahrain has also been a base for U.S. naval activity in the Gulf since
1947. When Bahrain became independent, the U.S.-Bahrain relationship
was formalized with the establishment of diplomatic relations. The U.S.
embassy at Manama was opened September 21, 1971, and a resident
ambassador was sent in 1974. The Bahraini embassy in Washington, DC,
opened in 1977. In October 1991, Amir Isa bin Salman Al Khalifa made a
state visit to Washington. In 2001, Amir Hamad bin Isa Al-Khalifa made
his first visit to the U.S. after succeeding his father in 1999. He
returned to Washington on an official visit in January 2003.

Bahrain
and the United States signed a Defense Cooperation Agreement in October
1991 granting U.S. forces access to Bahraini facilities and ensuring
the right to pre-position material for future crises. Currently the
headquarters of the U.S. Navy's Fifth Fleet, the U.S. designated
Bahrain a Major Non-NATO Ally in October 2001.

U.S.-Bahraini
economic ties have grown steadily since 1932, when Americans
participated in the development of Bahrain's oil industry. Bahrain is a
regional base for numerous American banks and firms. The U.S. and
Bahrain signed a free trade agreement (FTA) in September 2004. 

Principal U.S. Embassy Officials
Ambassador—William T. Monroe
Deputy Chief of Mission—Susan Ziadeh
Political/Economic Officer--Steven Bondy
Economic/Commercial Officer--Aimee Cutrona
Consular Officer--Larilyn Reffett
Public Affairs Officer--Aleta Wenger
Management Officer--Helen Hahn

The U.S. Embassy
in Bahrain is located off Sheikh Isa Highway, at Building 979, Road
3119, Block 321, Zinj, Manama, Bahrain. The mailing address is P.O. Box
26431, Manama, Bahrain; tel: [973] 242-700; fax: [973] 272-594. The
embassy's hours of operation outside of Ramadan are 8:00 a.m. - 4:00
p.m., Saturdays-Wednesdays.

TRAVEL AND BUSINESS INFORMATION
The
U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers. Free
copies of this information are available by calling the Bureau of
Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings also are
available on the Consular Affairs Internet home page: http://travel.state.gov.
Consular Affairs Tips for Travelers publication series, which contain
information on obtaining passports and planning a safe trip abroad, are
on the Internet and hard copies can be purchased from the
Superintendent of Documents, U.S. Government Printing Office,
telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning
Americans traveling abroad may be obtained from the Office of Overseas
Citizens Services at (202) 647-5225. For after-hours emergencies,
Sundays and holidays, call 202-647-4000.

The National Passport Information Center
(NPIC) is the U.S. Department of State's single, centralized public
contact center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators for
TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern
Time, excluding federal holidays.

Travelers can check the latest health
information with the U.S. Centers for Disease Control and Prevention in
Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web
site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations or
requirements, and advice on food and drinking water safety for regions
and countries. A booklet entitled Health Information for International
Travel (HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa
requirements, currency and customs regulations, legal holidays, and
other items of interest to travelers also may be obtained before your
departure from a country's embassy and/or consulates in the U.S. (for
this country, see "Principal Government Officials" listing in this
publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register their travel via the State Department’s travel registration web site at https://travelregistration.state.gov

or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.


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