Region: Middle East

Capital: Manama

Population: 718,306 (July 2008 est.)

Surface area: 665 sq km

Currency: Bahraini dinar (BHD)

GDP per capita: Purchasing power parity US $32,100 (2007 est.)

Background:
In 1783, 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's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. King Hamad bin Isa al-Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shi'a community. Shi'a political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shi'a political society, won the largest number of seats in the elected chamber of the legislature. However, Shi'a discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.

Economy – Overview:
With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems.

Major Export Commodities: petroleum and petroleum products, aluminum, textiles  

Remittances: Not available

Human Development Index 2007/2008 ranking:  41 out of 177

Official Development Assistance and Major Development Partners: Net ODA in 2004 was US $1.41 million.

Total External Debt: US $7.895 billion (31 December 2007 est.)

United Nations membership date: 21 September 1971

New York Mission:
Permanent Mission of the Kingdom of Bahrain to the United Nations
866 Second Avenue, 14^th and 15^th Floors
New York, N.Y. 10017 USA
Telephone: 212-223-6200
Fax: 212-319-0687, 212-223-6206

Website: bahrain.un.int