About

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. The amir, installed in 1999, has pushed economic and political reforms and has worked to improve relations with the
Shi'a community. In February 2001, Bahraini voters approved a referendum on the National Action Charter - the centerpiece of
the amir's political liberalization program. In February 2002, Amir HAMAD bin Isa Al Khalifa proclaimed himself king. In
October 2002, Bahrainis elected members of the lower house of Bahrain's reconstituted bicameral legislature, the National
Assembly.
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Source: The World Factbook
Population: 688,345
includes 235,108 non-nationals (July 2005 est.)
Capital: Manama
Languages: Arabic, English, Farsi, Urdu
Religions: Muslim (Shi'a and Sunni) 81.2%, Christian 9%, other 9.8% (2001 census)
Government: constitutional hereditary monarchy
Climate: arid; mild,
pleasant winters; very hot, humid summers
Terrain: mostly low desert plain rising
gently to low central escarpment
Geography: close to primary Middle Eastern petroleum sources; strategic location in Persian Gulf, through which much of the
Western world's petroleum must transit to reach open ocean
Ethnic groups: Bahraini 62.4%, non-Bahraini 37.6% (2001 census)
Economy: Petroleum production and refining account for about 60% of Bahrain's 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. A large share of exports consists of petroleum
products made from refining imported crude. Construction proceeds on several major industrial projects. Unemployment,
especially among the young, and the depletion of oil and underground water resources are major long-term economic problems. In
September 2004 Bahrain signed a Free Trade Agreement (FTA) with the United States - the first such agreement undertaken by a
Gulf state. Both countries must ratify the FTA before it is enforced.
GDP per capita: purchasing power parity - $20,500 (2005 est.)
GDP real growth: 5.9% (2005 est.)
Unemployment rate: 15% (1998 est.)
Internet country code: .bh
Dial code: +973
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Local currency is the Bahraini Dinar
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