FREE ESSAY ON BAHRAIN

BAHRAIN

Table of Contents
Section Page
History 3 
Cultural and Societal 5
Education 10
Business Climate 12
Government and Military 16
OVERVIEW OF BAHRAIN
History of Bahrain
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 much as 5000 years ago.
Since the late 18th century Bahrain has been governed by the Al-Khalifa family, which
created close ties to Britain by signing the General Treaty of Peace in 1820. A binding
treaty of protection, known as the Perpetual Truce of Peace and Friendship, was concluded
in 1861 and further revised in 1892 and 1951. This treaty was similar to those entered
into by the British Government with the other Persian Gulp principalities. It specified
that the ruler could not dispose of any of his territory except to the United Kingdom and
could not enter into relationships with any foreign government other than the United
Kingdom without British consent. The British promise to protect Bahrain from all
aggression by sea and to lend support in case of land attack.
After World War II, Bahrain became the center for British administration of treaty
obligations in the lower Persian Gulf. In 1968, when the British Government announced its
decision (reaffirmed in March 1971) to end the treaty relationships with the Persian Gulf
sheikdoms, Bahrain joined the other eight states (Qatar and the seven Trucial Sheikhdoms,
which are now called the United Arab Emirates) under British protection in an effort to
form a union of Arab emirates. By mid-1971, however, the nine sheikhdoms still had not
agreed on terms of union. Accordingly, Bahrain sought independence as a separate entity
and became fully independent on August 15, 1971, as the State of Bahrain.
Cultural and Societal
To truly understand the society and culture of Bahrain it is necessary to know what it is
based on. Society and culture in Bahrain is based on Islamic religious beliefs. These
beliefs are not only the moral standards for the country, but they are also the legal
standards for all commerce, criminal, civil, and political codes. From a western
standpoint this can be very confusing and different to comprehend. To alleviate some
confusion the following is a small summary of Islamic beliefs. The following is by no
means a complete summary and many beliefs, laws, and other religious criteria has been
left out for expediencies sake.
Islam
One of Islam's literal meanings is the "True Religion". An Islamic follower, or Muslim,
believes that all people practice Islam even though they do not acknowledge it. They
claim that their God, Allah, is the same as the Jewish and Christian God Ellohim. Their
religion was founded near the sixth century by a cleric named Muhammad (Please note that
his name is spelled many different ways and this is the one chosen for this report).
Muhammad claimed to have had revelations from Allah dictating how a follower of Islam
should act. Since those days sixth century Islamic morals have dominated the Middle
East.
This can be very confusing for a westerner at first. Instead of being just part of life,
as many people view religion in the west, Islamic followers believe it is everything to
them. Based on its linguistic origin, the Arabic word 'Islam' means to achieve
peace--peace with God, peace within oneself, and peace with the creations of God through
submission to God and commitment to His guidance. 
Islam is not a new religion but the final culmination and fulfillment of the same basic
truth that God revealed through all His prophets to every people. For a fifth of the
world's population, Islam is not just a personal religion but a complete way of living.
Over a billion people from all races, nationalities and cultures across the globe are
Muslim--from the rice farms of Indonesia to the deserts in the heart of Africa; from the
skyscrapers of New York to the Bedouin tents in Arabia. 
Only 18% of Muslims live in the Arab world; a fifth are found in Sub-Saharan Africa; and
the world's largest Muslim community is in Indonesia. Substantial parts of Asia are
Muslim, while significant minorities are to be found in the Central Asian Republics,
India, China, North and South America, Eastern and Western Europe.
Muslims believe in the One, Unique, Incomparable, Merciful God--the Sole Creator,
Sustainer and Cherisher of the Universe; in the Angels created by Him; in the Prophets
through whom His revelations were brought to humankind; in the Day of Judgment and in
individual accountability for actions; in God's complete authority over destiny, be it
good or bad; and in life after death. 
What do they believe in?
Muslims believe that God sent his messengers and prophets to all people beginning with
Adam (Adam) and including Noah (Nuh), Abraham (Ibrahim), Lot (Lut), Ishmael (Isma'il),
Isaac (Ishaq), Jacob (Ya'qub), Joseph (Yusuf), Job (Ayb), Moses (Musa), Aaron (Harun),
David (Dawud), Solomon (Sulayman), Elias (Ilyas), Jonah (Yunus), John the Baptist
(Yahya), and Jesus ('Isa); peace be upon them all. 
God's final message to humanity, a reconfirmation of the eternal message and a summing up
of all that has gone before, was revealed to the Last Prophet Muhammad (peace be upon
him) through the Archangel Gabriel. 
One becomes a Muslim by believing and proclaiming that There is none worthy of worship
except God, and that Muhammad is the Messenger of God. By this declaration the believer
announces his or her faith in all God's messengers, and the Scriptures (in their pristine
original form) that these messengers brought. 
What effect did Islam have on the world?
The Muslim community expanded rapidly after the Prophet's death. Within a few decades,
the territory under Muslim rule had extended onto three continents--Asia, Africa and
Europe. Over the next few centuries this Empire continued to expand and Islam gradually
became the chosen faith of the majority of its inhabitants. Among the reasons for the
rapid and peaceful spread of Islam was the simplicity of its doctrine--Islam calls for
faith in only One God worthy of worship. Islam also repeatedly instructs human beings to
use their powers of intelligence and observation. 
As Muslim civilization developed, it absorbed the heritage of ancient civilizations like
Egypt, Persia and Greece, whose learning was preserved in the libraries and with the
scholars of its cities. Some Muslim scholars turned their attention to these centers of
learning and sought to acquaint themselves with the knowledge taught and cultivated in
them. They, therefore, set about with a concerted effort to translate the philosophical
and scientific works available to them, not only from the Greek and Syriac languages (the
languages of eastern Christian scholars), but also from Pahlavi, the scholarly language
of pre-Islamic Persia, and even from Sanskrit, an ancient Indian language. 
Most of the important philosophical and scientific works of Aristotle; much of Plato and
the Pythagorean school; and the major works of Greek astronomy, mathematics and medicine
such as the Almagest of Ptolemy, the Elements of Euclid, and the works of Hippocrates and
Galen, were all rendered into Arabic. Furthermore, important works of astronomy,
mathematics, and medicine were translated from Pahlavi and Sanskrit. As a result, Arabic
became the most important scientific language of the world for many centuries and the
depository of much of the wisdom and the sciences of antiquity. 
The achievement of scholars working in the Islamic tradition went far beyond translation
and preservation of ancient learning. These scholars built upon and developed the ancient
heritage before passing it on to the West. 
Muslims excelled in art, architecture, astronomy, geography, history, language,
literature, medicine, mathematics, and physics. Many crucial systems such as algebra, the
Arabic numerals, and the very concept of the zero (vital to the advancement of
mathematics), were formulated by Muslim scholars and shared with medieval Europe.
Sophisticated instruments that would make possible the later European voyages of
discovery were invented or developed, including the astrolabe, the quadrant and
navigational charts and maps. 
What does this mean?
This means that when a westerner enters an Islamic nation they are going to face some new
ordeals. Here are a few of the differences from western culture:
? Hospitality- Hospitality is very different in Bahrain than a westerner might be used
to. You can walk down the street, and if you are hungry more often than not you can find
someone willing to take you to their house and fix a meal for you, and if you happen to
know the person at all it will be free. This also works for when you have no place to
stay. Sometimes they will let you stay at their house with their family.
? Music- The music that you will hear in this country will be different than what
westerners are used to. While there is freedom there, you cannot drive down the street
with your music loud in most areas, and the music that you do hear will rarely ever have
any profanity or graphic lyrics. 
? Dress- In Bahrain you might find western clothes readily available. However, most of
the older generation will be wearing the customary robes. They wear these not only at
home, but also out in public and business areas. The younger generation, however, is now
westernized and normally wears western style dress.
? Female- This might be the strangest custom that a westerner will encounter. In this
culture woman, for the most part, are unseen and unheard. Women do not hold jobs as in
western cultures, nor are they allowed to conduct business on a regular basis. In this
culture woman are said to be cherished and therefore are not allowed full rights under
the Bahrain system of government.
While these are not the only differences that a westerner need be aware of, they are some
of the most noticeable aspects of society. 
Education
The Ministry of Education in Bahrain is the official authority for running and
administering the governmental educational institutions and supervising private
education. 
The Ministry mission is represented in ensuring education for all, and improving its
quality and standard to meet the learners, the national development requirements and the
labor market needs. It will ultimately develop the integrated-balanced personality of the
Bahrain good citizen who is able to think and has belief in the Islamic faith and
belonging to the Arab nation and international family. 
As directed by the political leadership, the Ministry of Education is concerned with the
modernization of educational institutions in the country, providing all the material and
moral requirements. It believes that human resources represent the main and absolute
element in achieving the overall development in all fields. 
Therefore, the Ministry of Education has been interested in the continuous educational
development, activating the school role, strengthening society's confidence in it,
linking it with labor and production sector, and making education more relevant to the
Bahrain society and more effective to participate in achieving the national objectives. 
The Ministry also has made its efforts in guiding education to be in conformity with the
world rapid development, getting ready for the 21st century and facing the
technological-scientific development through the preparation of Bahrain citizens to live
their coming era with its technological and knowledgeable challenges, confidently and
enthusiastically. Therefore, all the necessary powers and abilities were directed, modern
technology was initially introduced to the Ministry's schools represented in using
computers as a teaching-learning tool. Plans were set to eradicate students,
administrators, teachers' computer illiteracy, and have been implemented since 1998/99. 
Recently, an ambitious project to introduce Internet in schools was launched to utilize
the Internet in activating the connection and gaining knowledge and information
efficiently. It helps to push teaching and learning ahead. 
The Objectives of the Education Programs
? To secure educational opportunities for children in poor communities, in order that
they can improve their future prospects. 
? Providing university education for students within target groups throughout the world.

? Confronting illiteracy in the developing communities. 
Educational Projects 
? Building and financially supporting educational institutions from kindergartens,
primary and secondary schools, up to colleges and universities. 
? Sponsoring teachers and paying their salaries and other related benefits. 
? Sponsoring students at various levels, including post-graduate studies. 
? The program provides training for teachers at various grades, and boarding facilities
for students. 
Bahrain Business Climate
Bahrain began to diversify its industry from simple oil production into petroleum
refining, petrochemicals, downstream industries, manufacturing, ship repair, and services
in the late 1960's. Their aim was to accelerate economic growth and to provide more
employment for Bahrainis. In 1995 the workforce was 272,100, of which only 40% were
Bahraini. There was also a 12% unemployment rate (5,100 persons) in 1995.
The government is responsible for and unprecedented series of industrial development and
employment initiatives. These initiatives have been further strengthened and enhanced by
legislation allowing 100% foreign ownership to onshore companies and a more equitable
agency law. The government has also encouraged private sector investment by maintaining
its commitment to zero taxes on corporate and personal income.
There would be no world-class multinational company to consider a major investment
anywhere unless the infrastructure was in place. Bahrain has easy access to an enormous
regional market through an excellent road system and a causeway linking Bahrain with
eastern Saudi Arabia. The island state has become the international financial services
capital of the Middle East. Most major Arab financial institutions have offices in
Bahrain, as do many international banks, branches of foreign insurance companies and
exempt companies trading offshore. The country is also an international and regional
wholesale inter-bank money market centered on its offshore banking sector, which was
first established in 1975 with assets equaling $70 million US dollars.
Bahrain has a firm but flexible regulatory environment, directed by the Bahrain Monetary
Agency. The Bahraini dinar is freely convertible and stable currency, firmly linked to
the US dollar. Bahrain has also had mostly a consistent stock exchange in recent years.
The gross volume of shares increased from 62 million in 1989 to nearly 400 million in
1993. Servicing the financial and business sectors is a digital telecommunication system
as advanced as any in the world. Services include exclusive private channels, access to
international databases and the Internet plus specially developed communication systems
for bank treasury options.
Recently there has been a major push to attract information technology companies. World
class computer and software companies such as Silicon Graphics and Digital Equipment have
chosen Bahrain as their regional base for sales and support operations. By attracting
such businesses and investment to Bahrain, the government can point to ten purpose-built
industrial areas accommodating over 500 different manufacturing and service companies. 
Bahrain is a key player in world financial and banking services. Its strategic location
between east and west time zones and its advanced digital telecommunications systems
enable it to communicate with all financial and business centers during the day. The
country is an international and regional wholesale interbank money market centered on its
offshore banking sector. The offshore financial sector today has assets of some US $70
billion and the daily foreign exchange turnover of all Bahrain's financial institutions
totals some US $4 billion.
International law firms, insurance companies, certified public accountants, management
and public relations consultants, financial analysts, and advisers are all represented in
the well-integrated services sector. This has of course stimulated the evolution of other
related financial establishments including the Bahrain Stock Market, the money exchange
sector, the real estate and construction business, and other commercial enterprises. 
Bahrain is home to some 90 commercial banks, investment houses and offshore banking units
(OBUs). There are also over 50 representative offices, money and foreign exchange
brokers, and about 60 local, foreign, and exempt insurance companies. Bahrain's economy
is estimated to be growing at a rate close to 5% with financial services now accounting
for some 18 % of all economic activity. Banks are investing in major projects and lending
at an ever-increasing pace to investors. The Bahrain Monetary Agency (BMA) is the force
behind the moves to improve the already high reputation of Bahrain in banking circles.
The BMA maintains sound reporting and accounting arrangements, which strictly adhere to
the best international practice. It conforms to international standards in the area of
supervision and focuses increasingly on the quality rather than the quantity of bank
assets. Bahrain has never had to revoke a banking license and has avoided the severe
losses, which have occurred in some other financial centers. Because no financial sector
can ever be immune to external happenings, the BMA announced a Deposit Protection Scheme.
Under this scheme, the commercial bank deposits of both residents and non-residents, in
local or foreign currency, will be protected up to a prescribed level in the event of the
liquidation of a bank operating in Bahrain. The concept of protection was further
enhanced by issuing a regulation relating to the licensing, regulation and supervision of
advisers providing investment and other financial advice in or from Bahrain. This
protects investors from the possibility of negligence or fraud.
Economic prosperity both in Bahrain and the Gulf is now firmly established as a fact.
Private sector growth and its future potential have been augmented as the government's
dominant role declines. Internationally, the investment community has become increasingly
aware of the advantages of globalization and a sustained low inflationary growth. These
factors will surely give a major impetus to the financial services sector and help
Bahrain to sustain its place as the financial capital of the Middle East for many years
to come. 
With a safe and cosmopolitan lifestyle and mature industrial infrastructure, with
industrial incentives unique to the region, with its reputation as a banking center, with
a legal system geared to protection of capital and with its strategic location, Bahrain
offers itself as a premier Middle East investment location.
Government in Bahrain
Bahrain is a traditional monarchy. Members of the al-Khalifa family hold the majority of
key government positions. The emir is a respected leader, and the royal family is
generally well liked in spite of growing distrust in the Shiite community. The country
employs the traditional Islamic administrative system of the majlis , which allows people
to petition the emir directly. Bahrain has no legislature, political parties and
elections are prohibited.
Military in Bahrain
Bahrain has several military branches: Ground Force, Navy, Air Force, Coast Guard, and
Police Force. A male is eligible for the military at the age of 15-49. The availability
of military manpower is 220,670. Bahrain spends $276.9 million on military forces
annually, which is 4.5% of the GDP.
Works Cited
ArabNet, 1-3. Retrieved February 10, 2000 from the World Wide Web:
http://www.arab.net/bahrain/bn_financial.html
Bahrain, 1. Retrieved February 10, 2000 from the World Wide Web:
http://www.countries.com/countries/bahrain
Bahrain: The Pearl of the Arabian Gulf. (Dilmun), 1-3. Retrieved February 10, 2000 from
the World Wide Web: http://members.tripod.com/~thottungal/Bahrain.html
CIA -- The World Factbook 1999:Bahrain, 1-8. Retrieved February 10, 2000 from the World
Wide Web: http://www.odci.gov/cia/publications/factbook/ba.html
Country Reports on Economic Policy & Trade Practices, 1-7. Retrieved February 10, 2000
from the World Wide Web: gopher://gopher.umsl.edu/oo/library/govdocs/crpt/crpt0008
Lands and People, 1. Retrieved February 10, 2000 from the World Wide Web:
http://infoplease/lycos.com/ce5/CE004132.html
Solman Al-khalifa, 1997, State of Bahrain: Central Statistical Organisation Directorate
of Statistics, State of Bahrain (publisher).