Background Notes: Bahrain
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Nov 28, 199111/28/91
Category: Country Data
Region: MidEast/North Africa
Country: Bahrain
Subject: Military Affairs, Cultural Exchange, Travel,
History, International Organizations,
Trade/Economics
[TEXT]
Official Name: State of Bahrain
PROFILE
Geography
Area: 693 sq. km. (268 sq. mi.); about four times the size of
Washington, DC. Bahrain is an archipelago consisting of 33 islands,
only 5 of them inhabited. Cities: Capital--Manama (pop. 122,000--
1985 est.). Other city--Al Muharraq. Terrain: Low interior plateau
and hill on main island. Climate: Hot and humid from April-October,
temperate from November-March.
People
Nationality: Noun and adjective--Bahraini(s). Population (1989
est.): 500,000 (66% indigenous). Ethnic groups: Arab 73%, Iranian
9%, Pakistani, Indian. Religions: Shi'a and Sunni Muslim. Languages:
Arabic (official), English, Farsi, Urdu. Education: Attendance--73%.
Literacy--about 74%. Work force (1987 est.): 197,000 (about 44%
indigenous, 56% expatriate). Agriculture--4%. Industry and
commerce--74%. Services--19%. Government--3%.
Government
Type: Traditional emirate (cabinet-executive system).
Independence: August 15, 1971. Constitution: May 26, 1973.
Branches: Executive--amir (chief of state), prime minister (head of
government), Council of Ministers (cabinet). Judicial--independent
judiciary with right of judicial review.
Subdivisions: 6 towns and cities.
Political parties: None. Suffrage: None.
Central government budget (1986-87): $2.6 billion.
Defense (1986): $134 million, or 9% of the published budget.
Flag: Three-fourths red field with serrated line separating white
field on staff side.
Economy
GDP (1989 est.): $3.4 billion. Real growth rate (est.): 3%. Per
capita income (1989 est.): $7,300. Avg. inflation rate (1988 est.):
2%.
Natural resources: Oil, associated and non-associated natural gas,
fish.
Agriculture (1% of GDP): Products--eggs, vegetables, dates, fish.
Industry (36% of GDP): Types--manufacturing (19% of GDP), oil
(16%), aluminum, ship repair, natural gas, fish.
Services (62% of GDP): Banking, real estate, insurance.
Trade (1989 est.): Exports--$2.7 billion: oil, aluminum, fish. Major
markets--Saudi Arabia, US, Japan. Imports--$3 billion: machinery,
industrial equipment, motor vehicles, foodstuffs, clothing. Major
suppliers--US, UK, Japan.
Official exchange rate: 0.38 Bahraini dinar=US $1 (fixed rate set in
1971).
Economic aid received: Significant budgetary support and project
grants from Saudi Arabia, Kuwait, and the United Arab Emirates.
International Affiliations
UN and most of its specialized agencies, Arab League, Organization
of Arab Petroleum Exporting Countries (OAPEC), Gulf Cooperation
Council (GCC).
PEOPLE
Most of the population of Bahrain is concentrated in the two
principal cities, Manama and Al Muharraq. The indigenous people--
66% of the population--are from the Arabian Peninsula and Persia.
The most numerous minorities are South and East Asians, and
Europeans.
Islam is the dominant religion. Though Shia Muslims make up
more than two-thirds of the population, Sunni Islam is the
prevailing belief held by those in the government, military, and
corporate sectors. Roman Catholic and Protestant churches, as well
as a tiny indigenous Jewish community, also exist in Bahrain.
Bahrain has traditionally boasted an advanced educational system.
Schooling and related costs are entirely paid for by the government
and primary and secondary attendance rates are high. Bahrain also
encourages institutions of higher learning, drawing on expatriate
talent and the increasing pool of Bahrainis returning from abroad
with advanced degrees. As a result, Bahrain University has been
created for standard undergraduate and graduate study and the
College of Health Sciences, operating under the direction of the
Ministry of Health, trains physicians, nurses, pharmacists, and
paramedics.
HISTORY
Bahrain was once part of the ancient civilization of Dilmun
and served as an important link in trade routes between Sumeria
and the Indus Valley as much as 5000 years ago. Since the late 18th
century, Bahrain has been governed by the Al-Khalifa family, which
created close ties to Britain by signing the General Treaty of Peace
in 1820. A binding treaty of protection, known as the Perpetual
Truce of Peace and Friendship, was concluded in 1861 and further
revised in 1892 and 1951. This treaty was similar to those entered
into by the British Government with the other Persian Gulf
principalities. It specified that the ruler could not dispose of any
of his territory except to the United Kingdom and could not enter
into relationships with any foreign government other than the
United Kingdom without British consent. The British promised to
protect Bahrain from all aggression by sea and to lend support in
case of land attack.
After World War II, Bahrain became the center for British
administration of treaty obligations in the lower Persian Gulf. In
1968, when the British Government announced its decision
(reaffirmed in March 1971) to end the treaty relationships with the
Persian Gulf sheikdoms, Bahrain joined the other eight states (Qatar
and the seven Trucial Sheikhdoms, which are now called the United
Arab Emirates) under British protection in an effort to form a union
of Arab emirates. By mid-1971, however, the nine sheikhdoms still
had not agreed on terms of union. Accordingly, Bahrain sought
independence as a separate entity and became fully independent on
August 15, 1971, as the State of Bahrain.
GOVERNMENT AND POLITICAL CONDITIONS
In 1973, the Amir enacted a new constitution, setting up an
experimental parliamentary system and protecting individual
liberties. In August 1975, however, the Amir disbanded the
National Assembly. No date has been announced for the
reintroduction of representative institutions.
Bahrain is a constitutional emirate under the rule of the Al-
Khalifa family. The Amir, Sheikh Isa bin Sulman Al-Khalifa, and his
brother, Prime minister Khalifa bin Sulman Al-Khalifa, govern
Bahrain in consultation with a council of ministers.
Bahrain's six towns and cities are administered by one central
municipal council, the members of which are appointed by the Amir.
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 regulation, was created with the help of
British advisers in the early 20th century. This judiciary
administers the legal code and reviews laws to ensure their
constitutionality.
Principal Government Officials
Amir--Sheikh Isa bin Sulman Al-Khalifa
Crown Prince and Commander in Chief of Bahrain Defense Force--
Sheikh Hamad bin Isa Al-Khalifa
Minister of Foreign Affairs--Sheikh Mohammad bin Mubarak Al-
Khalifa
Ambassador to the United Nations--Hussein Al-Sabbagh
Ambassador to the United States--Sheikh Mohammad bin Faris Al-
Khalifa
Bahrain maintains an Embassy in the United States at 3502
International Drive NW, Washington, DC 20008 (tel. 202-342-0741).
The Bahraini UN Mission is located at 747 3rd Avenue, New York, NY
10017, (tel. 212-751-8805).
DEFENSE
Under the Ministry of Defense, the Bahrain Defense Force (BDF)
numbers about 9,000 personnel, and consists of army, navy, air
force, and amiri guard units. Separate from the BDF, the public
security forces and the coast guard report to the Ministry of the
Interior. Bahrain, in conjunction with its GCC partners (Kuwait,
Oman, Qatar, Saudi Arabia, and the United Arab Emirates), has
moved to upgrade its defenses over the last 10 years in response to
the threat posed by the Iran-Iraq and Gulf wars. Defense spending
has increased by as much as 30% each year since 1980. In 1982, the
GCC gave Bahrain $1.7 billion to help improve its defenses. In the
wake of the Gulf war, Bahrain has received additional military
support from the United States, including the sale of eight Apache
helicopters in the summer of 1991. Joint air and ground exercises
have also been planned to increase readiness throughout the Gulf.
Bahrain and the United States signed an agreement in October 1991
granting US forces access to Bahraini facilities and ensuring the
right to pre-position material for future crises.
ECONOMY
Bahrain benefited from the region's economic boom in the late
1970s and 1980s. During that time, the government emphasized
infrastructural development and other projects to improve the
standard of living; health, education, housing, electricity, water,
and roads all received attention.
Petroleum and natural gas, the only significant natural
resources in Bahrain, dominate the economy and provide about 60%
of budget revenues. Bahrain was one of the first Persian Gulf
states to discover oil and was the first with a refinery. Because of
limited reserves, 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. The Bahrain Oil Company refinery was built in 1935, has a
capacity of about 250,000 b/d, and was the first in the Gulf. After
selling 60% of the refinery to the state-owned Bahrain National Oil
Company in 1980, Caltex, a US company, now owns 40%. Saudi
Arabia provides most of the crude for refinery operation via
pipeline. Bahrain also receives one-half of the net output and
revenues from Saudi Arabia's Abu Saafa offshore oilfield.
The Bahrain National Gas Company operates a gas liquefication
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.
Bahrain's other industries include Aluminum Bahrain, which
operates an aluminum smelter with an annual production of about
176,000 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. In
1973, the Bahraini Monetary Agency was formed to provide
oversight for the banking and financial sector. Since 1983, the
regional economic climate in which these institutions operate has
become less favorable because of the region's economic downturn.
Banks, including some from the United States, have reacted by
scaling back their operations or leaving the area. This decrease in
business confidence was exacerbated by the Gulf war.
Nevertheless, more than 100 offshore banking units and
representative offices are located in Bahrain.
FOREIGN RELATIONS
Bahrain plays a modest, moderating role in regional politics
and adheres to the views of the Arab League on Middle East peace
and Palestinian rights. Bahrain is a member of the GCC, established
in May 1981 with five other Gulf states. The country has fully
complied with steps taken by the GCC to coordinate economic
development and defense and security planning.
Because of its small size and limited wealth, Bahrain has not
taken a leading role in regional or international affairs. Rather, it
generally pursues a policy of close consultation with neighboring
states and works to narrow areas of disagreement. During the Gulf
war, Bahraini pilots flew strikes in Iraq, and the island was used as
a base for military operations in the Gulf.
Since achieving independence in 1971, Bahrain has maintained
friendly relations with its neighbors and the world community. One
notable exception is Bahrain's relations with Iran, which have been
strained since the Iranian revolution and the 1981 discovery of a
planned Iran-sponsored coup in Bahrain. However, with the removal
of Iraq as a regional power broker, Bahrain has taken steps, such as
encouraging Bahrain-Iran trade, to improve relations and increase
regional harmony.
US-BAHRAINI RELATIONS
When Bahrain became independent, the traditionally excellent
US-Bahrain relationship was formalized with the establishment of
diplomatic relations. The US 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 Sulman made a state visit to Washington, after
which he visited other parts of the US as well.
In 1977, the agreement establishing Bahrain as the home port
for the US Navy's Middle East Force (MIDEASTFOR) was terminated.
Arrangements have been made that allow the MIDEASTFOR ships to
call at Bahrain. The US Department of Defense-sponsored Bahrain
School remains, along with a small, administrative support unit.
After the Gulf war, close cooperation between the two nations
helped to stabilize the region. Bahrain expressed a willingness for
cooperation with proposed plans for joint exercises, increased US
naval presence in the Gulf and future cooperation on security
matters.
US-Bahraini economic ties have grown steadily since 1932,
when Americans began to help develop Bahrain's oil industry.
Currently, many American banks and firms use Bahrain as a base for
regional operations. In 1986, the United States displaced Japan to
become the top exporter to Bahrain.
Principal US Officials
Ambassador--Charles W. Hostler
Deputy Chief of Mission--David S. Robins
Economic/Commercial Officer--Steven M. Brattain
Political Officer--Thomas E. Williams, Jr.
Consular Officer--Stephanie Kronenburg
Public Affairs Officer--Rick Roberts
Agricultural Trade Officer--Philip A. Letarte
Administrative Officer--Lyle A. Dittmer
The US Embassy in Bahrain is located off Sheikh Isa Highway,
Building 979, Road 3119, Block 331, Zinj, Manama, Bahrain. The
mailing address is PO Box 26431, Manama, Bahrain, or FPO New York
09526-6210, tel. (973) 273300, after hours 715126; telex 9398
USNATO BN; fax (973) 272594. The Embassy's hours are 8:00 a.m.-
4:00 p.m., Saturdays-Wednesdays.
Travel Notes
Climate and clothing: Wear summer clothes from May to mid-
October and spring and fall attire from mid-October through April.
Always dress conservatively in public.
Customs: A visa is required for entry. US citizens may
purchase transit visas with 72-hour validity at Bahrain's
international airport. A 7-day visa is also available. Single women
traveling to Bahrain sometimes encounter difficulty obtaining
airport visas; they are strongly advised to secure their visas before
traveling. Travelers with Israeli visas and/or entry/exit stamps in
their passports will be barred from entry.
Health: No immunizations are required for entry, but malaria
suppressants are recommended. Health requirements change; check
latest information. Tapwater is potable but highly saline in most
areas; persons with sodium restrictions should drink bottled water.
No unusual precautions regarding food and drink are necessary.
Modern health services are provided in several hospitals and health
centers.
Telecommunications: Telephone connections are excellent
because international calls enter the satellite communications
system from Bahrain. Bahrain is 8 hours ahead of eastern standard
time. Cable and telex connections to leading hotels and businesses
are good. Bahraini television features Arabic-and-English-language
programs.
Transportation: Many major airlines serve Bahrain's modern
international airport. Taxis and rental cars are available in
Manama.
National Holidays: Businesses and shops may be closed on the
following holidays. Actual dates depend on lunar calendar: Prophet's
Birthday, November 3; Eid al-Fitr, May 29-30; Eid al-Adha, August
5-7; Islamic New Year, August 25; Ashura, September 3-6; National
Day, December 16 (fixed date).
Further information available from the Superintendent of
Documents, United States Government Printing Office, Washington,
DC 20402.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Washington,
DC --Series Editor: Peter Knecht--Department of State Publication
Background Notes Series. This material is in the public domain and
may be reprinted without permission; citation of this source is
appreciated. For sale by the Superintendent of Documents, US
Government Printing Office, Washington, DC 20402.(###)