Bahrain

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 Shia community. Shia political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shia political society, won the largest number of seats in the elected chamber of the legislature. However, Shia discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.

Economical characteristics

 * Currency: Bahraini dinar (ISO code: BHD)
 * Central bank discount rate:
 * Commercial banks lending rate: NA% (31 December 2008)
 * Stock of money (M1): $4.997 billion (31 December 2008)
 * Quasi money (with M1 makes M2): $12.71 billion (31 December 2008)

Links

 * Bahrain on Wikipedia
 * Central bank of Bahrain
 * Studies from the Library of Congress (1986-1998)
 * BBC country profile
 * Bahrain: why it matters to Saudi Arabia by Barney Jopson, February 2011
 * Bahrain's No Egypt by Robert Maginnis, February 2011
 * Bahrain and the Battle Between Iran and Saudi Arabia by George Friedman, March 2011