Gulf, amidst all the turmoil, Bahrain has remained an oasis in the Gulf. Bahrain has a long history of being ruled by the Al-Khalifa regime. Possessing minimal oil reserves, Bahrain has turned to petroleum processing and refining, and has transformed itself into an international banking center.

After more than 150 years of British presence and protection, Bahrain gained full independence on August 15, 1971. The agreement granting independence contained no provisions for the British defense in an emergency, but it did not provide for consultation. British authorities hoped that Bahrain, the most economically and socially advanced of the small gulf states, might take the lead in federation similar to that of the UAE, but Bahrain opted for complete independence. Shaykh Isa ibn Salmon Al-Khalifa, leader of the Al-Khalifa since the death of his father in 1961, became the newly independent country’s first amir and continued as the hereditary ruler in 1993.

The constitution designates the amir supreme commander of the armed forces. In 1977, Isa ibn Salomon chose his eldest so

The regime was able to attract enough regional petro-dollars to transform Bahrain into a regional banking and financial center. Expanding economy and diversifying has also reduced unemployment rates in the country, which has led to improving levels of wages for the labor force of Bahrain. The financial sector is the largest single employer in Bahrain; 90% of its employees are Bahraini. There are three categories of banking in Bahrain. First, there are the private banking institutions. Second, there are offshore banking units. Third, there are investment banks.

Britain has recognized the Al-Khalifa tribal order.

In order to challenge ethnic politics in Bahrain the NUC, National Union Committee was formed in 1954. Bahraini nationalists considered national unity of all Bahrainians as their first requirement for their liberation and as a step toward liberation of the Arab nation.

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