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Bahrain


Area:
665 sq km
Population: 698,585 (including over 230,000 expatriates)
Capital City: Manama (Al Manamah)
People: Arab, Muslim majority, of whom some 33% are Sunni and 66% are Shia
Languages: Arabic is the official language; English is widely spoken and is the main commercial language
Religion(s): Islam is the state religion; places of worship for other faiths exist
Currency: Bahraini Dinar (BD); 1 Bahraini Dinar = 1,000 fils (tied to the US dollar)
Major political parties: Political Parties are officially banned but Political Associations have been allowed to expand. These include Islamic groupings (Sunni and Shi’a), as well as secular and liberal associations.
Government: Monarchy with appointed upper and elected lower chambers of Parliament
Head of State: His Majesty Shaikh Hamad bin Isa Al-Khalifa
Crown Prince: His Highness Shaikh Salman bin Hamad Al Khalifa
Prime Minister: His Highness Shaikh Khalifa bin Salman Al-Khalifa
Deputy Prime Ministers: His Excellency Shaikh Mohammed bin Mubarak Al-Khalifa, His Excellency Jawad Al-Arrayed, His Excellency Shaikh Ali bin Khalifa Al Khalifa
Foreign Minister: His Excellency Shaikh Khalid bin Ahmed bin Mohammed Al-Khalifa
Membership of international groups/organisations: Arab League, Gulf Co-operation Council, Organisation of the Islamic Conference, United Nations

GEOGRAPHY

Bahrain is a group of 33 Gulf islands off the east coast of Saudi Arabia, the largest of which is Bahrain Island. Causeways connect the four main islands. Bahrain Island is also connected to Saudi Arabia by the 16 mile long King Fahd Causeway. The population is concentrated in the north around the capital, Manama. The climate is hot and humid, with minimal rain. Maximum temperatures average 30-40°C between May and October and 20-30°C for the remainder of the year.

HISTORY

Bahrain is an Arabic word meaning "Two Seas". Archaeological evidence indicates that Bahrain was inhabited at least 50,000 years ago. Originally seat of the Dilmun civilisation, Bahrain had connections with Mesopotamia and the Indus Valley, then in around 600BC became part of the Babylonian Empire.

By 650AD, the Arabian Peninsula, including Bahrain, came under the rule of the followers of the prophet Mohammed. The Al-Khalifa family took Bahrain from Persia in 1783 and by the ned of the century had moved their capital to Bahrain from Qatar. In 1820, Bahrain became a British protectorate, along with several other Gulf States.

Bahrain was the first Gulf country to discover petroleum in 1932. Oil provided the Ruling Family with an independent source of income, with which they developed a modern state administration, and Bahrain became strategically and commercially more important. The UK’s naval forces in the Persian Gulf established their base port at Al Jufayr in Bahrain.

On 14 August 1971, following Britain's decision to withdraw its armed forces from East of Suez, Bahrain announced its Independence from the UK. In 1973, a National Constitution was introduced, together with a democratic National Assembly; the Amir dissolved the Assembly in 1975 after it refused to pass a proposed State Security Law.

In the mid-1990s, Bahrain suffered a spate of anti-government disturbances stemming principally from the disaffection of the Shia majority. The situation calmed during the summer of 1995, but in early 1996 a number of hotels and restaurants were bombed (7 people died in one of the restaurants). As a result of the disturbances, over 1,000 people were held in detention without trial (since released - see below). There have been few major disturbances since then, and recent political reforms have widened the opportunity for all sectors to participate in political life (see below). Nevertheless, demonstrations which turn into low-intensity riots are still common.


POLITICS

Shaikh Hamad bin Isa Al-Khalifa succeeded his father (Shaikh Isa bin Sulman Al-Khalifa) as Ruler in 1999 on the latter’s death, and began to transform Bahrain into a constitutional monarchy. Shaikh Hamad pardoned political prisoners and detainees in 2001, including those previously exiled from Bahrain. He also abolished the State Security Law and State Security Court, which were much criticised by opposition groups for suppressing freedom.

After referendums and consultation, Shaikh Hamad presented Bahrain’s new Constitution on 14 February 2002, which set out plans for a bi-cameral Parliament (the National Assembly) and transformed Bahrain into a Kingdom. The Parliament comprises two Houses - the Shura (Consultative, Lower House) and the Nuwab (Upper Council of Representatives). Both Councils consist of 40 members, the Shura appointed by the King, and the Nuwab elected by the public. Members of both Councils serve four-year terms. Sessions of the Shura and Nuwab are open to the public, unless the government requests a closed session. The King retains the power to amend the Constitution.

The country’s first municipal elections since 1957 took place on 9 May 2002.. Women had the right to both vote and to stand as candidates. The turnout was 51%, with women making up 52% of voters. Candidates with links to Islamist groups won the majority of seats. Although women comprised 10% of candidates, none were elected.

Parliamentary elections took place on 24 October 2002. Due to a Shia boycott, over half of the 40 Members of Parliament elected were Sunni Islamists, with just 12 Shia Despite strong participation by female voters, no women were elected to the new parliament. The Government put considerable resources into encouraging as many people as possible to vote. The elections themselves were noted for the use of state-of-the-art technology, and for their transparency. The elections were successful in terms of the government's neutrality, and high-standard logistical organisation.

The most recent parliamentary and municipal elections were held in November 2006. Voter turnout was 72% and saw major gains for both Shia and Sunni Islamist parties. The Shia Al Wefaq took 17 of the 40 seats and became the largest single group in the Chamber. The election was preceded by a political realignment in which opposition parties that had boycotted 2002's poll agreed to take part. There were widespread allegations of malpractice by both the Government and candidates.

The Cabinet currently contains two female members: Dr Fatima Ahmed Al Beloushi (Minister of Social Affairs), and Dr Nada Haffadh (Minister for Health). On 18 April 2005, a Shura council session was chaired by Alees Samaan - the first time in Bahrain’s history a parliamentary session had been chaired by a female.

When Bahrain was elected to head the United Nations General Assembly in 2006 it appointed lawyer and women's rights activist Haya bint Rashid Al Khalifa as the President of the United Nations General Assembly, only the third woman in history to head the world body.

The King recently created the Supreme Judicial Council to regulate the country's courts and institutionalise the separation of the administrative and judicial branches of government.

ECONOMY

Basic Economic Facts

GDP per head: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$25,300
Inflation: 3.5%
Major Industries: Aluminium, oil and gas, metal and ship building and repair, financial services and tourism.
Major trading partners: Saudi Arabia, US, India, Japan, UK, France, South Korea.
Exchange rate: UK£1 = BD 0.744 (BD is tied to the US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$)

Bahrain has a small, reasonably prosperous economy with less dependence on oil than most other Gulf states. Having been the first to discover oil in 1932, the economy is now well diversified and one of the acknowledged banking, financial services, and human resources development and training centres of the Gulf. The economic environment is liberal, but well regulated; the authorities have managed recent oil price fluctuations sensibly and successfully trained Bahraini nationals for private sector employment. “Bahrainisation”, a policy employed by industry and government in the last twenty years, is in effect in abeyance and may be replaced shortly by a new, less stringent system of incentives to employ Bahrainis, created by the Economic Development Board.

In Bahrain, petroleum production and processing account for about 60% of export receipts, 60% of government revenues, and 30% of GDP. With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf region. Financial and insurance services contributed 30% of GDP in 2006.

Long-term prospects for the small Bahraini market are linked to wider Gulf markets, particularly Saudi Arabia. Bahrain already has a large offshore financial sector serving Saudi and Gulf needs, although Saudi restrictions prevent Bahrain from becoming a more successful base for Saudi investments. Recent Saudi moves towards economic liberalisation and WTO accession could make it easier for Bahrain-based firms to do business in Saudi Arabia. Linked to this, Central Bank of Bahrain is leading the way to establish Bahrain as the premier Islamic banking centre in the Middle East, with 16 Islamic banks and financial institutions already based in the kingdom. The continuing development of the Bahrain Financial Harbour is a key element of the government’s strategy.

In 2004 Bahrain signed a Free Trade Agreement with the US.

INTERNATIONAL RELATIONS

Bahrain is a member of the Gulf Co-operation Council alongside its neighbours Qatar, Kuwait, Oman, Saudi Arabia, and the UAE.

Bahrain is a partner in the regional airline Gulf Air, currently with the Sultanate of Oman (Qatar withdrew from the partnership in 2002, as did Abu Dhabi in 2005).

On 16 March 2001, the International Court of Justice (ICJ) announced its judgement on the long-standing maritime delimitation and territorial dispute between Bahrain and Qatar. The judgement awarded sovereignty over the Hawar Islands and Qit'at Jaradah to Bahrain and sovereignty over Zubarah, which forms part of the Qatar peninsula, Janan Island and Fasht ad Dibal to Qatar, and redrew the international maritime border. This peaceful settlement has provided the impetus for renewed co-operation between the two countries.

Bahrain hosted the second Forum for the Future meeting in November 2005 to further advance the partnership between the G8 and the broader Middle East and North Africa, and hosts the annual IISS Gulf Dialogue (“the Manama Dialogue”). This is organised by the London-based International Institute for Strategic Studies (IISS), one of the world’s leading international affairs research institutes.

HUMAN RIGHTS

Bahrain is a relatively liberal Gulf State. Many communities are allowed their own places of worship and the Shura Council includes a Christian and a Jewish member. Bahrain has introduced significant political reforms since King Hamad bin Isa Al Khalifa succeeded his father in 1999.

Bahrain has two independent non-governmental human rights organisations: The Bahrain Human Rights Society (which has recently received authorisation to monitor prison conditions). The Bahrain Human Rights Watch Society was banned.

The press is also relatively free although editors exercise self-censorship.

INTERNATIONAL TREATIES

Bahrain is a party to the following UN conventions, which were ratified on the dates shown:

  • International Convention on the elimination of all forms of racial discrimination: 27/03/90;
  • International convention on the suppression and punishment of the crime of apartheid: 27/03/90;
  • Convention on the prevention and punishment of the crime of genocide: 27/03/90;
  • Supplementary convention on the abolition of slavery, the slave trade, and institutions and practices similar to slavery: 27/03/90;
  • UN Convention on the rights of the child: 13/02/92;
  • Convention against torture or other cruel, inhuman or degrading treatment or punishment: 6/03/98;
  • UN Convention on the Elimination of All Forms of Discrimination Against Women: 18/07/02;
  • Bahrain signed the Rome Statute of the International Criminal Court in 1999, but have yet to ratify;
  • International Covenant on Civil and Political Rights (ICCPR): 20/09/06 (accession);
  • International Covenant on Economic, Social and Cultural Rights (ICESCR): pending.
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