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#CARD:BAHRAIN:BACKGROUND NOTES
BAHRAIN BACKGROUND NOTES, NOVEMBER 1991
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE


NOVEMBER 1991

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. [phone]).  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. [phone], 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 --
November 1991 -- Editor:  Andrew Knighton

Department of State Publication 8013
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.