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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 long as 5,000 years ago. Since the late 18th century, Bahrain has been governed by the Al Khalifa family. In 1971 the State of Bahrain became fully independent when the attempt to form a union of Arab emirates was unsuccessful. Since Shaykh Hamad bin Isa Al Khalifa became Amir in 1998 after the death of his father, he has worked to make Bahraini society more democratic and open. Such changes have included the return to the Constitution in 2001 as the supreme source for the country's laws and the legalization of nongovernmental organizations, paving the way for Bahrain to become a constitutional monarchy.

Most of the population of Bahrain is concentrated in the two principal cities, Manama and Al Muharraq, and 66% are indigenous. Islam is the official religion and Arabic the official language. Though Shi'a 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. Bahrain has traditionally boasted an advanced educational system, exhibiting a literacy rate of 82%. Schooling and related costs are entirely paid for by the government, and, although not compulsory, primary and secondary attendance rates are high.

Bahrain has a mixed economy, with government control of many basic industries, including the important oil and aluminum industries. Petroleum and natural gas, the only significant natural resources in Bahrain, dominate the economy and provide about 60% of budget revenues. The government has used its modest oil revenues to build an advanced infrastructure in transportation and telecommunications. Bahrain is a regional financial and business center. International financial institutions operate here as well, both offshore and onshore, without impediments.

For more information, please see the U.S. State Department site:http://www.state.gov/r/pa/bgn/index.cfm?docid=5301.