(CBS)
In 1782, 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 and 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.
Source: CIA World Fact Book 
(AP)
708,573 note: includes 235,108 non-nationals (July 2007 est.)
Age structure: 0-14 years: 26.9% (male 96,217/female 94,275) 15-64 years: 69.5% (male 284,662/female 207,555) 65 years and over: 3.7% (male 13,451/female 12,413) (2007 est.)
Median age: total: 29.7 years male: 32.7 years female: 26.1 years (2007 est.)
Population growth rate: 1.392% (2007 est.)
Birth rate: 17.53 births/1,000 population (2007 est.)
Death rate: 4.21 deaths/1,000 population (2007 est.)
Net migration rate: 0.6 migrant(s)/1,000 population (2007 est.)
Sex ratio: at birth: 1.03 male(s)/female under 15 years: 1.021 male(s)/female 15-64 years: 1.372 male(s)/female 65 years and over: 1.084 male(s)/female total population: 1.255 male(s)/female (2007 est.)
Infant mortality rate: total: 16.18 deaths/1,000 live births male: 18.89 deaths/1,000 live births female: 13.4 deaths/1,000 live births (2007 est.)
Life expectancy at birth: total population: 74.68 years male: 72.18 years female: 77.25 years (2007 est.)
Total fertility rate: 2.57 children born/woman (2007 est.)
HIV/AIDS - adult prevalence rate: 0.2% (2001 est.)
HIV/AIDS - people living with HIV/AIDS: less than 600 (2003 est.)
HIV/AIDS - deaths: less than 200 (2003 est.)
Nationality: noun: Bahraini(s) adjective: Bahraini
Ethnic groups: Bahraini 62.4%, non-Bahraini 37.6% (2001 census)
Religions: Muslim (Shi'a and Sunni) 81.2%, Christian 9%, other 9.8% (2001 census)
Languages: Arabic, English, Farsi, Urdu
Literacy: definition: age 15 and over can read and write total population: 86.5% male: 88.6% female: 83.6% (2001 census)
(AP)
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. Other major segments of Bahrain's economy are the financial and construction sectors. 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. Unemployment, especially among the young, and the depletion of oil and underground water resources are major long-term economic problems.
GDP (purchasing power parity): $18.02 billion (2006 est.)
GDP (official exchange rate): $12.14 billion (2006 est.)
GDP - real growth rate: 7.8% (2006 est.)
GDP - per capita (PPP): $25,800 (2006 est.)
GDP - composition by sector: agriculture: 0.5% industry: 38.7% services: 60.8% (2005 est.)
Labor force: 352,000 note: 44% of the population in the 15-64 age group is non-national (2006 est.)
Labor force - by occupation: agriculture: 1% industry: 79% services: 20% (1997 est.)
Unemployment rate: 15% (2005 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): 3.5% (2006 est.)
Investment (gross fixed): 21.1% of GDP (2006 est.)
Budget: revenues: $5.582 billion expenditures: $4.197 billion; including capital expenditures of $700 million (2006 est.)
Public debt: 34.2% of GDP (2006 est.)
Agriculture - products: fruit, vegetables; poultry, dairy products; shrimp, fish
Industries: petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, offshore banking, insurance, ship repairing, tourism
Industrial production growth rate: 2% (2000 est.)
Electricity - production: 7.794 billion kWh (2004)
Electricity - consumption: 7.248 billion kWh (2004)
Electricity - exports: 0 kWh (2004)
Electricity - imports: 0 kWh (2004)
Oil - production: 188,300 bbl/day (2005 est.)
Oil - consumption: 27,000 bbl/day (2004 est.)
Oil - exports: NA bbl/day
Oil - imports: NA bbl/day
Oil - proved reserves: 121 million bbl (2006 est.)
Natural gas - production: 9.75 billion cu m (2004 est.)
Natural gas - consumption: 9.75 billion cu m (2004 est.)
Natural gas - exports: 0 cu m (2004 est.)
Natural gas - imports: 0 cu m (2004 est.)
Natural gas - proved reserves: 92.03 billion cu m (1 January 2005 est.)
Current account balance: $1.999 billion (2006 est.)
Exports: $12.62 billion (2006 est.)
Exports - commodities: petroleum and petroleum products, aluminum, textiles
Exports - partners: NA
Imports: $9.036 billion (2006 est.)
Imports - commodities: crude oil, machinery, chemicals
Imports - partners: Saudi Arabia 37.3%, Japan 6.8%, US 6.2%, UK 6.2%, Germany 5%, UAE 4.2% (2006)
Reserves of foreign exchange and gold: $2.918 billion (2006 est.)
Debt - external: $7.267 billion (2006 est.)
Economic aid - recipient: $150 million; note - $50 million annually since 1992 from the UAE and Kuwait (2002)
Currency (code): Bahraini dinar (BHD)
Exchange rates: Bahraini dinars per US dollar - 0.376 (2006), 0.376 (2005), 0.376 (2004), 0.376 (2003), 0.376 (2002)
Fiscal year: calendar year
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