Brief History:
Bahrain entered recorded history 5,000 years ago when it was known as Dilmun to the Sumerians, the first great civilization of the Middle East. During the 3d millennium B.C., Bahrain was already an important trade center, functioning as a transshipment point between Arabia and India. In 1783 two centuries of Persian domination were expelled by an Arabian family that established the present ruling dynasty, the Al-Khalifas. In 1816, Bahrain became a British Protected State with governmental authority shared by the ruling sheikh and a British adviser. In 1971, after Britain withdrew from the Persian Gulf area, Bahrain became independent. Bahrain was a founding member of the Gulf Cooperation Council (GCC) in 1981, along with neighboring Persian Gulf countries, and it is also a member of the United Nations and the Arab League.
Although oil was discovered in Bahrain in the 1930s, it was relatively little compared to other Gulf states, and the wells are expected to be the first in the region to dry up. Sheikh Isa bin Salman al-Khalifa, who became Emir in 1961, was determined to diversify his country's economy, and set about establishing Bahrain as a major financial center. Sheikh Isa bin Salman al-Khalifa died in 1999 and was succeeded by his son, Sheikh Hamad bin Isa al-Khalifa. who immediately began a sweeping democratization of the country: censorship has been relaxed and draconian laws repealed, exiles have been repatriated, and the stateless Bidoons have been granted citizenship. In a Feb. 2001 referendum, which permitted women to vote for the first time, Bahrainis overwhelmingly supported the transformation of the traditional monarchy into a constitutional one. In 2002 Bahrain was proclaimed a kingdom and had its first parliamentary election.
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Geography:
Location:Middle East, archipelago in the Persian Gulf, east of Saudi Arabia
Area: Total: 665 sq km Land: 665 sq km Water: 0 sq km
Land Boundaries: Total: 0 km
Natural Resources: Oil, associated and nonassociated natural gas, fish, pearls
Environment - Current Issues: 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
Demographics:
| Population | 677,886 (July 2004 est.) |
| Age Structure | 0-14 years: 28.4%
15-64 years: 68.4%
65 years and over: 3.3% |
| Population Growth Rate | 1.56% (2004 est.) |
| Birth Rate | 18.54 births/1,000 population (2004 est.) |
| Death Rate | 4.03 deaths/1,000 population (2004 est.) |
| Net Migration Rate | 1.05 migrant(s)/1,000 population (2004 est.) |
| Sex Ratio | at birth: 1.03 male(s)/female
under 15 years: 1.02 male(s)/female 15-64 years: 1.41 male(s)/female
65 years and over: 1.05 male(s)/female
total population: 1.27 male(s)/female (2004 est.) |
| Infant Mortality Rate | 17.91 deaths/1,000 live births |
| Life Expectancy at Birth | total population: 73.98 years
male: 71.52 years
female: 76.51 years (2004 est.) |
| Total Fertility Rate | 2.67 children born/woman (2004 est.) |
| Literacy | definition: age 15 and over can read and write
total population: 89.1%
male: 91.9% female: 85% (2003 est.) |
% of population with access to
safe water |
% of population with access to
adequate sanitation |
| Water - Total | - | Sanitation - Total | - |
| Water - Urban | - | Sanitation - Urban | - |
| Water - Rural | - | Sanitation - Rural | - |
Economy - Overview:
Limited oil resources forced Bahrain to reduce its dependency on hydrocarbons some 20 years ago, resulting in one of the most diversified economies in the Gulf region. During the 1970s and 1980s, the government focused on the creation of industrial infrastructure and heavy industries, including shipbuilding and aluminum smelting. The oil and gas sector remains a cornerstone of the economy, accounting for half of government revenues, two-thirds of exports, but less than one-fifth of GDP. To diversify the economy, the government has liberalized foreign investment regulations and new opportunities for the private sector are emerging. One focus is on developing Bahrain's stock market to accelerate privatization in the business sector. Bahrain has a mixed economy, with government control of many basic industries, including the important oil and aluminum industries. Between 1981 and 1993, Bahrain Government expenditures increased by 64%. During that same time, government revenues continued to be largely dependent on the oil industry and increased by only 4%. Bahrain has received significant budgetary support and project grants from Saudi Arabia, Kuwait, and the United Arab Emirates.
| GDP | purchasing power parity - $11.38 billion (2003 est.) |
| GDP - Real Growth Rate | 3.6% (2003 est.) |
| GDP - Per Capita | purchasing power parity - $17,100 (2003 est.) |
| GDP - Composition by Sector | agriculture: 1%
industry: 35%
services: 64% (2002 est.) |
| Inflation Rate (consumer prices) | 0.4% (2003) |
| Labor force | 295,000 (1998) |
| Labor force - by occupation | services, industry & commerce 79%, agriculture 1%, government 20%(1997 est.) |
| Budget | revenues: $1.8 billion
expenditures: $2.2 billion, including capital expenditures of $700 million (2002 est.) |
| Industries | petroleum processing and refining, aluminum smelting, offshore banking, ship repairing; tourism |
| Exports | $6.492 billion (2003 est.) |
| Exports commodities | petroleum and petroleum products, aluminum, textiles |
| Exports partners | US 4.5%, India 3.2%, Saudi Arabia 2.1% (2002) |
| Imports | $5.126 billion (2003 est.) |
| Imports commodities | crude oil, machinery, chemicals |
| Imports partners | Saudi Arabia 29.5%, US 11.4%, Japan 7%, Germany 6.4%, UK 5.5% (2002) |
| Currency | Bahraini dinar (BHD) |
| Exchange Rates | Bahraini dinars per US dollar - 0.38 (2003), 0.38 (2002), 0.38 (2001), 0.38 (2000), 0.38 (1999) |
| Telephones - main lines in use | 175,400 (2002) |
| Telephones - mobile cellular | 389,000 (2002) |
| Telephone system | general assessment: modern system
domestic: modern fiber-optic integrated services; digital network with rapidly growing use of mobile cellular telephones
international: country code - 973; tropospheric scatter to Qatar and UAE; microwave radio relay to Saudi Arabia; submarine cable to Qatar, UAE, and Saudi Arabia; satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean) and 1 Arabsat (1997) |
| Radio broadcast stations | AM 2, FM 3, shortwave 0 (1998) |
| Television broadcast stations | 4 (1997) |
| Internet country code | .bh |
| Internet hosts | 1,339 (2002) |
| Internet users | 165,000 (2002) |
| Highways | total: 3,261 km paved: 2,531 km unpaved: 730 km (2000) |
| Waterways | none |
| Pipelines | gas 20 km; oil 53 km (2003) |
| Ports and harbors | Manama, Mina' Salman, Sitrah |
| Merchant marine | total: 6 ships (1,000 GRT or over) 219,083 GRT/312,638 DWT ships by type: bulk 3, container 2, petroleum tanker 1
registered in other countries: 2 (2003 est.) foreign-owned: Hong Kong 1, Kuwait 1 |
| Airports | 4 (2003 est.) |
| Airports - with paved runways | total: 3 |
| Airports - with unpaved runways | total: 1 |
| Heliports | 1 (2003 est.) |
