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.
- Official name: Al Mamlakah al Bahrayn (Kingdom of Bahrain)
- Head of State: King Hamad bin Isa al Khalifa (ruler since Mar 1999; King since 14 Feb 2002)
- Head of government: Prime Minister Sheikh Khalifa bin Sulman al Khalifa
- Area: 676 square km (35 islands)
- Population: 754,000 (2005)*
- Capital: Manama
- Official language: Arabic, English widely spoken
- Time Zone: GMT +3
- Currency: Bahraini dinar (BD) = 1,000 fils
- Exchange rate: BD0.38 per US$ (fixed)
- GDP per capita: US$13,848 (2004) $18,020,000,000 (2006)
- GDP real growth: 5.50% (2004); 6.0% (2005)
- Labour force: 349,000 (2004)
- Inflation: 4.90% (2004)
- Balance of trade: US$1.49 billion (2004)
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 export of Aluminium, 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.
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Although oil was discovered in the area in 1902, large-scale drilling and processing didn't happen until the 1930s, right about the time the world pearl market was collapsing. Oil money brought improved education and health care to Bahrain. It also brought the British closer: the main British naval base in the region was moved to Bahrain in 1935, and the senior British official in the Middle East followed suit in 1946.
Another mark of British influence was the long tenure of Charles Belgrave, who arrived in Bahrain in 1926 as adviser to the emir and stayed for over 30 years. Belgrave helped create the country's educational system and oversaw much of Bahrain's infrastructural development. When Emir Isa bin Salman Al-Khalifa ascended the throne in 1942, he capitalised on Bahrain's superior level of development to take advantage of the oil boom happening in Saudi Arabia and other neighbouring countries, making Bahrain the Gulf's main entrepĂ´t. The waves of Arab nationalism that swept through the region in the 1950s led to increasing anti-British sentiment in Bahrain. Rioting flared during the Suez crisis of 1956, bringing British troops. Britain announced its intention to leave the Gulf 15 years later. Bahrain regained full independence in 1971.
As the price of oil went through the stratosphere during the 1970s and 1980s, the country grew by leaps and bounds. The Iranian revolution touched off a few violent pro-Iranian demonstrations in Bahrain in 1979 and 1980, but Islamic fundamentalism failed to capture widespread support. Despite the Gulf-wide economic downturn of the late 1980s, Bahrain remained calm and prosperous thanks to its earlier efforts at economic diversification. The country's main shipyard did a roaring trade in the late 1980s, patching up tankers that had been hit by one side or the other during the Iran-Iraq War. The opening of the King Fahd Causeway between Bahrain and Saudi Arabia in 1986 gave a boost to business and tourism.
The 1990s saw Bahrain wracked with external threats and internal strife. Though the Scud missile attack on Bahrain ordered by Saddam Hussein during the Gulf War landed harmlessly in the sea, relations between the two countries hit an all-time low. The emir's refusal to implement democratic reforms led to widespread rioting in the mid-1990s. Bahrain cooperated closely with the UN's monitoring mission to Iraq in the late 1990s, though the US military buildup in the Gulf in early 1998 strained relations between Bahrainis and US military personnel.
Recent History
In 2001 a national charter for constitutional reforms was endorsed by the country's first ever national referendum and a year later, on 14 February, Bahrain was declared a constitutional monarchy and Sheikh Hamad its king. Bahrain was pronounced a constitutional monarchy in 2002, Sheikh Hamad changing his status from amir to king. The same year saw Bahrainis elect members to the National Assembly.
Q. How much does the Bahraini solicitor charge and what service does he provide?
A. 350BD (looking after the agreement and land search)
Q. How much does the Land Registry cost?
A. Zero
Q. What is the Annual Rental income Tax?
A. Zero
Q. What are the Service Charge payments?
A. Service charge is determined by the owners of the apartments and is paid by the tenants. For the first 6 months after completion, the developers will manage the property and will charge 0.5BD per sqmt per month.
Q. Who pays the annual Property Tax (Council Tax)?
A. The tenant. As well as Electricity, Gas & Water.
Q. What is the CGT in Bahrain?
A. Zero
Q. Who will help arrange a mortgage?
A. KC Real Estate is able to assist you with obtaining a mortgage.
Q. Who will manage my property?
A. As the developer is guaranteeing the rent, he will be in charge of the letting. After this period is over, KC Real Estate will assist your property letting.