Background: 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. Possessing minimal oil reserves Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. The new amir is pushing economic and political reforms and has worked to improve relations with the Shi'a community.
Geography Note: close to primary Middle Eastern petroleum sources; strategic location in Persian Gulf which much of Western world's petroleum must transit to reach open ocean
Environment Current issues: desertification resulting from the degradation of limited arable land: periods of drought and dust storms; coastal degradation (damage to coastlines coral reefs and sea vegetation) resulting from oil spills and other discharges from large tankers oil refineries and distribution stations; no natural fresh water resources so that groundwater and sea water are the only sources for all water needs
Administrative divisions: 12 municipalities (manatiq singular - mintaqah); Al Hadd Al Manamah Al Mintaqah al Gharbiyah Al Mintaqah al Wusta Al Mintaqah ash Shamaliyah Al Muharraq Ar Rifa' wa al Mintaqah al Janubiyah Jidd Hafs Madinat Hamad Madinat 'Isa Juzur Hawar Sitrah
Legislative branch: unicameral National Assembly was dissolved 26 August 1975 and legislative powers were assumed by the Cabinet; appointed Advisory Council established 16 December 1992
International organization participation: ABEDA AFESD AL AMF ESCWA FAO G-77 GCC IBRD ICAO ICRM IDB IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC ISO (correspondent) ITU NAM OAPEC OIC OPCW UN UNCTAD UNESCO UNIDO UPU WFTU WHO WIPO WMO WTrO
Economy overview: In Bahrain petroleum production and processing account for about 60% of export receipts 60% of government revenues and 30% of GDP. Economic conditions have fluctuated with the changing fortunes of oil since 1985 for example during and following the Gulf crisis of 1990-91. 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 imported crude. Construction proceeds on several major industrial projects. Unemployment especially among the young and the depletion of both oil and underground water resources are major long-term economic problems.
Exports: $3.3 billion (f.o.b. 1998) Commodities: petroleum and petroleum products 61% aluminum 7% Partners: India 18% Japan 11% Saudi Arabia 8% South Korea 7% UAE 5% (1997)
Imports: $3.5 billion (f.o.b. 1998) Commodities: nonoil 59% crude oil 41% Partners: Saudi Arabia 45% US 10% UK 6% Japan 5% Germany 4% (1997)
Disputes international: the territorial dispute with Qatar over the Hawar Islands and the maritime boundary dispute with Qatar are currently before the International Court of Justice (ICJ)