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

Capital: Manama

Climate: arid; mild, pleasant winters; very hot, humid summers

Terrain: mostly low desert plain rising gently to low central escarpment

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

Population: 708,573 (July 2007 est.)

Languages: Arabic, English, Farsi, Urdu

Industries: petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, offshore banking, insurance, ship repairing, tourism

Government type: constitutional monarchy

A Brief History

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 being of small size and of central location among Persian Gulf countries is required to play a delicate balancing act in foreign affairs among its larger neighbours. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking centre. King HAMAD bin Isa Al Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shia community and 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.