Changes

The indigenous population is 98% Muslim. Although some two-thirds of the indigenous population is Shi'a Muslim, the ruling family and the majority of government, military, and corporate leaders are Sunni Muslims. The small indigenous Christian and Jewish communities make up the remaining 2% of the population. Roughly half of foreign resident community are non-Muslim, and include Christians, Hindus, Baha'is, Buddhists and Sikhs.  

The indigenous population is 98% Muslim. Although some two-thirds of the indigenous population is Shi'a Muslim, the ruling family and the majority of government, military, and corporate leaders are Sunni Muslims. The small indigenous Christian and Jewish communities make up the remaining 2% of the population. Roughly half of foreign resident community are non-Muslim, and include Christians, Hindus, Baha'is, Buddhists and Sikhs.  

Bahrain has invested its oil revenues in developing an advanced educational system. The first public schools for girls and boys were opened in the 1920s. The government continues to pay for all schooling costs. Although school attendance is not compulsory, primary and secondary attendance rates are high, and literacy rates are currently among the highest in the region. Higher education is available for secondary school graduates at the Bahrain University, Arabian Gulf University and specialized institutes including the College of Health Sciences--operating under the direction of the Ministry of Health--which trains physicians, nurses, pharmacists, and paramedics. The government has identified providing educational services to the Gulf Cooperation Council as a potential economic growth area, and is actively working to establish Bahrain as a regional center for higher education.  

Bahrain has invested its oil revenues in developing an advanced educational system. The first public schools for girls and boys were opened in the 1920s. The government continues to pay for all schooling costs. Although school attendance is not compulsory, primary and secondary attendance rates are high, and literacy rates are currently among the highest in the region. Higher education is available for secondary school graduates at the Bahrain University, Arabian Gulf University and specialized institutes including the College of Health Sciences—operating under the direction of the Ministry of Health—which trains physicians, nurses, pharmacists, and paramedics. The government has identified providing educational services to the Gulf Cooperation Council as a potential economic growth area, and is actively working to establish Bahrain as a regional center for higher education.  

*Population (July 2007 est.): 708,535, including about 235,108 non-nationals.

*Population (July 2007 est.): 708,535, including about 235,108 non-nationals.

*Annual growth rate (2007 est.): 1.39%.  

*Annual growth rate (2007 est.): 1.39%.  

*Languages: Arabic (official), English, Farsi, and Urdu are also widely spoken.

*Languages: Arabic (official), English, Farsi, and Urdu are also widely spoken.

*Education: Education is not compulsory, but is provided free to Bahrainis and non-nationals at all levels, including higher education. Estimated net primary school attendance (1991-2001)--84%. Adult literacy, age 15 and over (2003 est.)--89.1% for the overall population (male 91.9%, female 85%).

*Education: Education is not compulsory, but is provided free to Bahrainis and non-nationals at all levels, including higher education. Estimated net primary school attendance (1991-2001)--84%. Adult literacy, age 15 and over (2003 est.)--89.1% for the overall population (male 91.9%, female 85%).

*Health: Infant mortality rate (2007 est.)--16.18 deaths/1,000 live births. Life expectancy--72 yrs. males, 77 yrs. females.  

*Health: Infant mortality rate (2007 est.)--16.18 deaths/1,000 live births. Life expectancy—72 yrs. males, 77 yrs. females.  

*Work force (2006 est.): 352,000 of which 44% are foreigners.  

*Work force (2006 est.): 352,000 of which 44% are foreigners.  

On February 14, 2002, one year after the referendum endorsing his National Action Charter, Shaikh Hamad pronounced Bahrain a constitutional monarchy and changed his status from Amir to King. He simultaneously announced that the first municipal elections since 1957 would be held in May 2002, and that a bicameral parliament, with a representative lower house, would be reconstituted with parliamentary elections in October 2002. As part of these constitutional reforms, the government also created an independent financial watchdog empowered to investigate cases of embezzlement and violations of state expenditure in July 2002.  

On February 14, 2002, one year after the referendum endorsing his National Action Charter, Shaikh Hamad pronounced Bahrain a constitutional monarchy and changed his status from Amir to King. He simultaneously announced that the first municipal elections since 1957 would be held in May 2002, and that a bicameral parliament, with a representative lower house, would be reconstituted with parliamentary elections in October 2002. As part of these constitutional reforms, the government also created an independent financial watchdog empowered to investigate cases of embezzlement and violations of state expenditure in July 2002.  

Turnout for the May 2002 municipal elections was 51%, with female voters making up 52% percent of voters. Turnout for the 2002 parliamentary elections--the first in almost three decades--was 53% in the first round and 43% in the second round, despite the fact that four political societies, including the largest Shi'a society, organized a boycott to protest constitutional provisions enacted by the King that gave the appointed upper chamber of parliament voting rights equal to the elected lower chamber. The new parliament held its first joint sitting in December 2002. Bahrain held its second set of parliamentary and municipal elections in November and December 2006. All registered political societies participated in the elections and a Shia society, Al Wifaq, now represents the largest single bloc inside the Council of Representatives. Thirty-two of the Council's 40 members represent Sunni and Shia Islamist societies. One woman, Lateefah Al-Qauod, ran uncontested and became the first woman elected to parliament in Bahrain.  

Turnout for the May 2002 municipal elections was 51%, with female voters making up 52% percent of voters. Turnout for the 2002 parliamentary elections—the first in almost three decades—was 53% in the first round and 43% in the second round, despite the fact that four political societies, including the largest Shi'a society, organized a boycott to protest constitutional provisions enacted by the King that gave the appointed upper chamber of parliament voting rights equal to the elected lower chamber. The new parliament held its first joint sitting in December 2002. Bahrain held its second set of parliamentary and municipal elections in November and December 2006. All registered political societies participated in the elections and a Shia society, Al Wifaq, now represents the largest single bloc inside the Council of Representatives. Thirty-two of the Council's 40 members represent Sunni and Shia Islamist societies. One woman, Lateefah Al-Qauod, ran uncontested and became the first woman elected to parliament in Bahrain.  

Bahrain has 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 regulations created with the help of British advisers in the early 20th century. In 2001, Shaikh Hamad created the Supreme Judicial Council to regulate these courts and separate the administrative and judicial branches of government.  

Bahrain has 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 regulations created with the help of British advisers in the early 20th century. In 2001, Shaikh Hamad created the Supreme Judicial Council to regulate these courts and separate the administrative and judicial branches of government.  

===Principal Government Officials===

===Principal Government Officials===

*King--Shaikh Hamad bin Isa Al Khalifa

*King—Shaikh Hamad bin Isa Al Khalifa

*Crown Prince and Commander in Chief of the Bahrain Defense Force--Shaikh Salman bin Hamad bin Isa Al Khalifa

*Crown Prince and Commander in Chief of the Bahrain Defense Force—Shaikh Salman bin Hamad bin Isa Al Khalifa

*Prime Minister--Shaikh Khalifa bin Salman Al Khalifa

*Prime Minister—Shaikh Khalifa bin Salman Al Khalifa

*Deputy Premier--Jawed bin Salem Al Arrayed

*Deputy Premier—Jawed bin Salem Al Arrayed

*Deputy Premier--Shaikh Mohammad bin Mubarak Al Khalifa  

*Deputy Premier—Shaikh Mohammad bin Mubarak Al Khalifa  

*Deputy Premier--Shaikh Ali bin Khalifa Al Khalifa  

*Deputy Premier—Shaikh Ali bin Khalifa Al Khalifa  

*Foreign Minister--Shaikh Khalid bin Ahmed Al Khalifa

*Foreign Minister—Shaikh Khalid bin Ahmed Al Khalifa

*Ambassador to the United States--Dr. Naser M.Y. Al-Belooshi

*Ambassador to the United States—Dr. Naser M.Y. Al-Belooshi

*Ambassador to the United Nations--Tawfeeq Al-Ahmed Al-Mansoor  

*Ambassador to the United Nations—Tawfeeq Al-Ahmed Al-Mansoor  

===Foreign Relations===

===Foreign Relations===

Since achieving independence in 1971, Bahrain has pursued a policy of close consultation with neighboring states. Bahrain became a member of the United Nations and the Arab League in 1971. In 1981 it joined its five neighbors--Saudi Arabia, Oman, Kuwait, the U.A.E. and Qatar--to form the strategic Gulf Cooperation Council (GCC). Bahrain has complied with GCC efforts steps to coordinate economic development and defense and security planning. In December 1994, for example, Bahrain concurred with the GCC decision to drop secondary and tertiary boycotts against Israel. Bahrain also responded positively to Kuwait's request to deploy the GCC collective defense force, "Peninsula Shield," during the build up and execution of Operation Iraqi Freedom (OIF) in 2003.  

Since achieving independence in 1971, Bahrain has pursued a policy of close consultation with neighboring states. Bahrain became a member of the United Nations and the Arab League in 1971. In 1981 it joined its five neighbors—Saudi Arabia, Oman, Kuwait, the U.A.E. and Qatar—to form the strategic Gulf Cooperation Council (GCC). Bahrain has complied with GCC efforts steps to coordinate economic development and defense and security planning. In December 1994, for example, Bahrain concurred with the GCC decision to drop secondary and tertiary boycotts against Israel. Bahrain also responded positively to Kuwait's request to deploy the GCC collective defense force, "Peninsula Shield," during the build up and execution of Operation Iraqi Freedom (OIF) in 2003.  

In addition to maintaining strong relations with its largest financial backers, Saudi Arabia, Kuwait and the U.A.E., Bahrain has worked to improve its relations with Qatar and has proper, but not warm, relations with Iran. Bahrain-Iran relations have been strained since the discovery in 1981 of an Iran-sponsored coup plot in Bahrain. Bahraini suspicions of the Iranian role in local unrest in the mid-1990s remain. On March 16, 2001, the International Court of Justice (ICJ) announced its judgment on the long-standing maritime delimitation and territorial dispute between Bahrain and Qatar. The binding judgment awarded sovereignty over the Hawar Islands and Qit'at Jaradah to Bahrain and sovereignty over Zubarah (part of the Qatar Peninsula), Janan Island and Fasht ad Dibal to Qatar. The peaceful settlement of this dispute has allowed for renewed co-operation, including plans to construct a causeway between the two countries.  

In addition to maintaining strong relations with its largest financial backers, Saudi Arabia, Kuwait and the U.A.E., Bahrain has worked to improve its relations with Qatar and has proper, but not warm, relations with Iran. Bahrain-Iran relations have been strained since the discovery in 1981 of an Iran-sponsored coup plot in Bahrain. Bahraini suspicions of the Iranian role in local unrest in the mid-1990s remain. On March 16, 2001, the International Court of Justice (ICJ) announced its judgment on the long-standing maritime delimitation and territorial dispute between Bahrain and Qatar. The binding judgment awarded sovereignty over the Hawar Islands and Qit'at Jaradah to Bahrain and sovereignty over Zubarah (part of the Qatar Peninsula), Janan Island and Fasht ad Dibal to Qatar. The peaceful settlement of this dispute has allowed for renewed co-operation, including plans to construct a causeway between the two countries.  

==Economy==

==Economy==

The first Gulf state to discover oil, Bahrain's reserves are expected to run out in 10-15 years. Accordingly, Bahrain has worked to diversify its economy over the past decade and has stabilized its oil production at about 40,000 barrels per day (b/d). Revenues from oil and natural gas currently account for 11.1% of GDP yet currently provide about 76% of government income. The state-owned Bahrain Petroleum Company refinery built in 1935, the first in the Gulf, has a capacity of about 260,000 b/d. Saudi Arabia provides most of the crude for refinery operation via pipeline. Through an agreement with Saudi Arabia, Bahrain also receives half of the net output and revenues from Saudi Arabia's Abu Saafa offshore oilfield.  

The first Gulf state to discover oil, Bahrain's reserves are expected to run out in 10–15 years. Accordingly, Bahrain has worked to diversify its economy over the past decade and has stabilized its oil production at about 40,000 barrels per day (b/d). Revenues from oil and natural gas currently account for 11.1% of GDP yet currently provide about 76% of government income. The state-owned Bahrain Petroleum Company refinery built in 1935, the first in the Gulf, has a capacity of about 260,000 b/d. Saudi Arabia provides most of the crude for refinery operation via pipeline. Through an agreement with Saudi Arabia, Bahrain also receives half of the net output and revenues from Saudi Arabia's Abu Saafa offshore oilfield.  

The Bahrain National Gas Company operates a gas liquefaction plant that utilizes gas piped directly from Bahrain's oilfields. Gas reserves should last about 50 years at present rates of consumption. However, rising domestic demand spurred by a recent development boom has highlighted the need to increase gas supplies. 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. Growth in the hydrocarbons sector will be contingent upon new discoveries--Bahrain awarded exploration rights to Malaysia's Petronas and the U.S.'s Chevron Texaco after the resolution of Bahrain's long-standing territorial dispute with Qatar, but no meaningful finds have been announced to date. Bahrain's other industries include the majority state-owned Aluminum Bahrain (Alba)--which operates the largest aluminum smelter in the world outside Eastern Europe with an annual production of about 843,000 metric tons (mt) in 2005 after the completion of an expansion program--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.  

The Bahrain National Gas Company operates a gas liquefaction plant that utilizes gas piped directly from Bahrain's oilfields. Gas reserves should last about 50 years at present rates of consumption. However, rising domestic demand spurred by a recent development boom has highlighted the need to increase gas supplies. 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. Growth in the hydrocarbons sector will be contingent upon new discoveries—Bahrain awarded exploration rights to Malaysia's Petronas and the U.S.'s Chevron Texaco after the resolution of Bahrain's long-standing territorial dispute with Qatar, but no meaningful finds have been announced to date. Bahrain's other industries include the majority state-owned Aluminum Bahrain (Alba)--which operates the largest aluminum smelter in the world outside Eastern Europe with an annual production of about 843,000 metric tons (mt) in 2005 after the completion of an expansion program—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. Bahrain is a regional financial and business center; international financial institutions operate in Bahrain, both offshore and onshore, without impediments, and the financial sector is currently the largest contributor to GDP at 27.6%. Some 370 offshore banking units and representative offices are located in Bahrain, as well as 65 American firms. Bahrain has also made a concerted effort to become the leading Islamic finance center in the Arab world, standardizing regulations of the Islamic banking industry. It currently has 32 Islamic commercial, investment and leasing banks as well as Islamic insurance (takaful) companies--the largest concentration of Islamic financial institutions in the Middle East. <ref>https://www.cia.gov/library/publications/the-world-factbook/geos/ba.html</ref>

Bahrain's development as a major financial center has been the most widely heralded aspect of its diversification effort. Bahrain is a regional financial and business center; international financial institutions operate in Bahrain, both offshore and onshore, without impediments, and the financial sector is currently the largest contributor to GDP at 27.6%. Some 370 offshore banking units and representative offices are located in Bahrain, as well as 65 American firms. Bahrain has also made a concerted effort to become the leading Islamic finance center in the Arab world, standardizing regulations of the Islamic banking industry. It currently has 32 Islamic commercial, investment and leasing banks as well as Islamic insurance (takaful) companies—the largest concentration of Islamic financial institutions in the Middle East.<ref>https://www.cia.gov/library/publications/the-world-factbook/geos/ba.html</ref>

Bahrain is working to develop other service industries such as information technology, healthcare and education. The government has used its oil revenues to build an advanced infrastructure in transportation and telecommunications. The state monopoly--Batelco--was broken in April 2003 following the establishment of the Telecommunications Regulatory Authority (TRA). Since that time, the TRA has granted some 63 licenses in the interest of promoting healthy industry competition.  

Bahrain is working to develop other service industries such as information technology, healthcare and education. The government has used its oil revenues to build an advanced infrastructure in transportation and telecommunications. The state monopoly—Batelco—was broken in April 2003 following the establishment of the Telecommunications Regulatory Authority (TRA). Since that time, the TRA has granted some 63 licenses in the interest of promoting healthy industry competition.  

Bahrain plans to expand its airport, one of the busiest in the Gulf. More than 4.8 million passengers transited Bahrain International Airport in 2005. A modern, busy port offers direct and frequent cargo shipping connections to the U.S., Europe, and the Far East. To boost its competitiveness as a regional center, Bahrain is building a new port and has privatized port operations.  

Bahrain plans to expand its airport, one of the busiest in the Gulf. More than 4.8 million passengers transited Bahrain International Airport in 2005. A modern, busy port offers direct and frequent cargo shipping connections to the U.S., Europe, and the Far East. To boost its competitiveness as a regional center, Bahrain is building a new port and has privatized port operations.  

*Per capita GDP (2006 est.): $20,600.

*Per capita GDP (2006 est.): $20,600.

*Natural resources: Oil, aluminum, textiles, natural gas, fish, pearls.

*Natural resources: Oil, aluminum, textiles, natural gas, fish, pearls.

*Agriculture (less than 1% of GDP): Products--fruit, vegetables, poultry, dairy products, shrimp, fish.

*Agriculture (less than 1% of GDP): Products—fruit, vegetables, poultry, dairy products, shrimp, fish.

*Industry: Types--oil and gas (13.1% of GDP), manufacturing (12.4% of GDP), aluminum.

*Industry: Types—oil and gas (13.1% of GDP), manufacturing (12.4% of GDP), aluminum.

*Services: Finance (24.2% of GDP), transport and communications (8.9% of GDP), real estate (9.2% of GDP); government services (14.8% of GDP).

*Services: Finance (24.2% of GDP), transport and communications (8.9% of GDP), real estate (9.2% of GDP); government services (14.8% of GDP).

*Trade (2006 est.): Exports--$12.62 billion: oil and other mineral products, aluminum, textiles. Major markets-- Saudi Arabia (3.2%), U.S. (3%), Japan (2.3%). Imports--$9.04 billion: crude oil, machinery and appliances, transport equipment, foodstuffs. *Major suppliers--Saudi Arabia (37.3%), Japan (6.8%), U.S. (6.2%), U.K. (6.2%), Germany (5%), U.A.E. (4.2%).  

*Trade (2006 est.): Exports--$12.62 billion: oil and other mineral products, aluminum, textiles. Major markets—Saudi Arabia (3.2%), U.S. (3%), Japan (2.3%). Imports--$9.04 billion: crude oil, machinery and appliances, transport equipment, foodstuffs. *Major suppliers—Saudi Arabia (37.3%), Japan (6.8%), U.S. (6.2%), U.K. (6.2%), Germany (5%), U.A.E. (4.2%).  

==History==

==History==

<blockquote>

<blockquote>

The country has a poor human rights record and very uneven distribution of wealth. Adding to the trouble is strong sectarian tension between Shiites (majority) and Sunnis (minority, power-holders). Although Bahrain is small, it is strategically important to the United States as the home to the U.S. Navy’s Fifth Fleet. <ref>[http://globalvoicesonline.org/specialcoverage/bahrain-protests-2011/ Bahrain Protests 2011.]</ref>

The country has a poor human rights record and very uneven distribution of wealth. Adding to the trouble is strong sectarian tension between Shiites (majority) and Sunnis (minority, power-holders). Although Bahrain is small, it is strategically important to the United States as the home to the U.S. Navy’s Fifth Fleet.<ref>[http://globalvoicesonline.org/specialcoverage/bahrain-protests-2011/ Bahrain Protests 2011.]</ref>

</blockquote>

</blockquote>