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.

Geographic coordinates: 26 00 N, 50 33 E

Map reference: Middle East

Fiscal year: calendar year

Exchange rates: Bahraini dinars (BD) per US$1_0.3760 (fixed rate)

Telephones: 73,552 (1987 est.)

Telephone system: modern system; good domestic services and excellent international connections
Domestic: NA
International: tropospheric scatter to Qatar and UAE; microwave radio relay to Saudi Arabia; submarine cable to Qatar, UAE, and Saudi Arabia; satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean) and 1 Arabsat

Military expenditures
Dollar figure: $256 million (1994)
Percent of gdp: 5.4% (1995)

Airports: 3 (1997 est.)
With paved runways total: 2
With paved runways over 3047 m: 2 (1997 est.)
With unpaved runways total: 1
With unpaved runways 15-24 to 2437 m: 1 (1997 est.)

Heliports: 1 (1997 est.)

Pipelines: crude oil 56 km; petroleum products 16 km; natural gas 32 km

Railways: 0 km

Merchant marine
Total: 6 ships (1,000 GRT or over) totaling 131,919 GRT/212,510 DWT
Ships by type: bulk 2, cargo 3, oil tanker 1 (1997 est.)

Disputes international: territorial dispute with Qatar over the Hawar Islands and maritime boundary dispute with Qatar currently before the International Court of Justice (ICJ)