Bahrain is renowned for its verdant groves of date palms; since ancient times it has been an entrepôt for trade and a source of natural resources for the surrounding area. Bahrain Island is widely believed to be the site of the ancient kingdom of Dilmun, a commercial centre that traded with ancient Sumer. It has been settled and colonized by various groups, including the Khalīfah family (Āl Khalīfah), a native Arab dynasty that has ruled Bahrain since the late 18th century. Recognizing the islands' strategic importance, the Khalīfah have opened Bahrain's port facilities to the naval fleets of foreign countries, including the United States.

Bahrain's total land area is slightly greater than that of Singapore. Saudi Arabia lies to the west across the Gulf of Bahrain, while the Qatar peninsula lies to the east. The King Fahd Causeway, 15 miles (24 km) long, links Bahrain to Saudi Arabia.

While the small islands in both groups are rocky and low-lying, rising only a few feet above sea level, the main island is more varied in appearance. Geologically, the island consists of gently folded layers of sedimentary rocks: limestones, sandstones, and marls (loose clay, sand, or silt) formed during the Cretaceous (Cretaceous Period) and Tertiary (Tertiary Period) periods (i.e., up to about 145 million years old). The central region is rocky and barren, rising to 440 feet (134 metres) above sea level at Al-Dukhān Hill (Jabal Al-Dukhān), the country's highest point. The southern and western lowlands consist of a bleak sandy plain with some salt marshes, while the northern and northwestern coasts afford a striking contrast, forming a narrow belt of date palms and vegetable gardens irrigated from prolific springs and wells that tap artesian water. The source of this water is precipitation on the western mountains of Saudi Arabia. The abundance of fresh water has provided Bahrain with fertile land, from which it gained importance historically as a harbour and trading centre in the Persian Gulf. Economic developments and population growth have outstripped the available artesian water in the country, and some three-fifths of the water used now comes from seawater desalinization (desalination) plants powered by natural gas.

Summer in Bahrain is unpleasant, as high temperatures frequently coincide with high humidity. Midday temperatures from May to October exceed 90 °F (32 °C), often reaching 95 °F (35 °C) or higher; summer nights are sultry and humid. Winters are cooler and more pleasant, with mean temperatures from December to March dipping to 70 °F (21 °C). Rainfall is confined to the winter months and averages only 3 inches (75 mm) per year, but this may vary from almost nothing to double that amount. On average, rain falls only about 10 days a year. Sunshine is abundant year-round. The predominant wind is the damp, northwesterly shamāl (shamal); the qaws, a hot, dry south wind, is less frequent and brings sand, dust, and low humidity.

Some 200 different species of desert plants grow in the bare, arid portions of the archipelago, while the irrigated and cultivated areas of the islands support fruit trees, fodder crops, and vegetables. The variety of animals is limited by the desert conditions. Gazelle and hares are not yet extinct, and lizards and jerboas (desert rodents) are common; the mongoose—probably imported from India—is found in the irrigated areas. Birdlife is sparse except in spring and autumn, when many varieties of migratory birds rest temporarily in Bahrain while traveling to and from higher temperate latitudes.

Roughly two-thirds of the population is Arab, and most are native-born Bahrainis, but some are Palestinians, Omanis, or Saudis. Foreign-born inhabitants, comprising more than one-third of the population, are mostly from Iran, India, Pakistan, Britain, and the United States. About three-fifths of the labour force is foreign.

Arabic (Arabic language) is the official language of Bahrain. English is widely used, however, and is a compulsory second language at all schools. Persian is also common, although it is spoken mostly in the home. A number of other languages are spoken among expatriates in Bahrain, including Urdu, Hindi, and Tagalog.

The majority of the population now dwells in towns, but in the north and northwest of the main island, where irrigation has long been carried out using artesian water, there are numerous small villages and isolated dwellings where horticulture is the way of life. This area has an aspect of great fertility, which contrasts starkly with the bare desert appearance of much of the country. Villages consist, for the most part, of substantial flat-roofed houses built of stone or concrete. Some of the temporary settlements of fishermen and the poor are still constructed of barasti (branches of the date palm). There is little permanent settlement either in the southern half of Bahrain Island or on the smaller islands.

More than one-third of the population lives in the two principal cities, Manama and Al-Muḥarraq (Muḥarraq, Al-). Manama, with its port of Mīnāʾ Salmān, is the largest city and contains the main government offices, the business and financial district, many large hotels, Western-style shops, and a traditional Arab souk (market). It has a distinctly modern appearance as compared with Al-Muḥarraq, which is densely settled and has many narrow, winding streets. Other major settlements are Awālīʿ, near the centre of Bahrain Island, built largely for expatriate employees of the Bahrain Petroleum Company B.S.C. (Bapco); Madīnat ʿĪsā (Madīnah ʿĪsā) (Isa Town), a community established by the government in 1968; the sizable settlements of Al-Rifāʿ al-Shamālī (North Rifāʿ), Al-Rifāʿ al-Sharqī (East Rifāʿ), and Al-Rifāʿ al-Gharbī (West Rifāʿ); and Madīnat Ḥamad, completed in 1984.

The population of Bahrain has been steadily growing, increasing almost 2 percent a year. Life expectancy is high, with males living on average to about 71 and females to 76. The death rate is well below the world average, and the major causes of death are diseases of the circulatory or respiratory system and cancer. More than one-fourth of the population is under the age of 15.

Less than 3 percent of Bahrain is arable, and agriculture contributes only a marginal proportion of the gross national product. The majority of Bahrain's food is imported, but agricultural production meets some local needs, including a large portion of vegetables and dairy products. Tomatoes, dates, bananas, citrus fruits, mangoes, pomegranates, and alfalfa (lucerne) are among the main crops. Cattle breeding and poultry farming are also encouraged by the government, while camels and horses are bred for racing. The increasingly polluted waters of the gulf, mainly caused by spillages from Kuwaiti oil installations during the Persian Gulf War, have killed off economically valuable marine life (notably shrimp) that were important to the fishing industry. Fisheries have remained largely unexploited despite some government attempts to privatize and modernize the industry.

Bahrain's oil production has always been small by Middle Eastern standards, and refining crude oil imported from Saudi Arabia has been of much greater importance since vast oil fields were discovered on the mainland; in 1998 Bapco began a major modernization project for its refinery. Bahrain's only oil field, Al-Baḥrayn (also known as Awali), is rapidly depleting. Several oil companies, however, have been granted exploration rights by the government. The country's offshore natural gas supplies are somewhat more substantial. Petroleum and natural gas resources and production are nationalized, but in the 1990s the government began encouraging foreign investment in the sector.

The traditional industries of Bahrain were building dhows (lateen-rigged sailing vessels), fishing, pearling, and the manufacture of reed mats. These activities are now carried out on only a small scale.

Ship repair is handled at Mīnāʾ Salmān, near Manama, and at a large yard operated on Al-ʿAzl Island. Light industries include the production of building materials, furniture, soft drinks, plastics, and a wide range of consumer goods. The government has a significant financial stake in all these modern industries. In addition to the aluminum smelter operated by Alba, an aluminum rolling mill was opened in 1986 that manufactures such products as door and window frames.

The government has encouraged the growth of banking, insurance, and other financial services, and consequently Bahrain has become an important financial centre, notably of offshore banking. These activities have increasingly contributed to the country's balance of payments. Bahrain has also been able to benefit from its long tradition as a commercial centre. The country's central bank is the Bahrain Monetary Agency, which also issues the Bahraini dinar, the national currency. In addition to offshore banking units, there are local and foreign commercial banks, as well as investment banks. The Bahrain Stock Exchange opened in 1989.

Bahrain's main import is the crude petroleum brought in by underwater pipeline from Saudi Arabia to be refined. Other major imports are machinery, food, and chemicals. The primary exports are refined petroleum products and aluminum goods. Saudi Arabia is the principal trading partner, and the United States and Japan are also important.

Services, including public administration, defense, and retail sales, employ some three-fifths of Bahrain's workforce and also account for about three-fifths of the gross domestic product (GDP). The service sector, particularly tourism, is the fastest growing area of the economy.

Tourism is actively promoted by the government, and, with its balmy climate and scenic location, the country is a growing tourist destination. Travelers from other, more conservative Persian Gulf countries—who comprise the largest number of visitors—are attracted to Bahrain's more liberal society. Visitors from outside the region come for the country's climate and to experience its unique cultural wealth.

The majority of the workforce is men, with women constituting about one-fifth of the total. Women, however, are encouraged to work by the government, especially as a means of increasing indigenous employment. Beginning in the 1970s, non-Bahrainis have comprised a large portion of the country's workforce; by the end of the 20th century, two-thirds of those working were foreigners. There are no unions in Bahrain, which, although legal, are discouraged by the government. The standard work week is Saturday through Wednesday.

Bahrain has no individual income tax, and its only corporate tax is levied on oil, petroleum, and gas companies. Taxes account for less than one-third of the country's revenue.

Bahrain Island has an excellent system of paved roads, and its causeway connections to Al-Muḥarraq and Sitrah islands and to Saudi Arabia facilitate travel. There are no railroads, but the principal towns and villages are well served by bus and taxi services; a large proportion of residents also own motor vehicles. Bahrain International Airport on Al-Muḥarraq Island is one of the busiest airports in the Middle East and is served by most major international airlines. Manama is the headquarters of Gulf Air, owned by the governments of Bahrain, Oman, Qatar, and the United Arab Emirates. Steamers run scheduled service from Bahrain to other gulf ports and to Pakistan and India.

Bahrain Telecommunications Company (Batelco), established in 1981, serves the country's telephone, wireless telephone, data communications, and Internet needs, either directly or through its subsidiaries. Through Batelco, Bahrain has promoted itself as a regional telecommunications centre, connecting the countries of the gulf region with the broader world. In 1998 Batelco opened an underwater fibre-optic cable network linking Bahrain, Kuwait, Qatar, and the United Arab Emirates.

Since the 18th century, the head of the Āl Khalīfah, the country's ruling family, has taken the title emir. A constitution promulgated in 2002 established Bahrain as a constitutional hereditary monarchy whose head of state is now titled king. Under the new constitution the executive is composed of a prime minister, who is head of government, and a Council of Ministers, all of whom are appointed by the king. The legislative branch consists of two houses: a 40-member Consultative Council that is also appointed by the king and a 40-member Chamber of Deputies that is elected by universal adult suffrage. The voting age is 20 years. Members of both deliberative bodies serve terms of four years. Women, in addition to voting, may stand for local and national elections. An earlier constitution (1973) created a National Assembly composed of appointed members and others elected by popular vote, but after a period of labour unrest and political agitation the assembly was dissolved by the emir in 1975. Public representation thereupon reverted to the traditional Arab and Islamic system of a majlis (council), through which citizens and other residents presented petitions directly to the emir. In 1993 the emir created the Consultative Council, to which the first women were appointed in 2000.

Bahrain's legal system is based on Islamic law (Sharīʿah) and English common law. The highest court in the country is the High Civil Appeals Court, and there are separate courts for members of Sunni and Shīʿite sects. When the royal family faced growing unrest in the 1990s from protesters, predominantly Shīʿite Muslims calling for a restoration of the constitution, a special court was established to prosecute dissenters.

In light of the political unrest of the 1990s, Ḥamad ibn ʿĪsā Āl Khalīfah, after succeeding his father to the throne in 1999, promised political reforms. In 2001 a national referendum approved a new document, the National Action Charter (NAC), and the new constitution appeared the following year.

Participation in the military is voluntary, and males can enter service at age 15. The country maintains a large military and police force relative to its population, but it is one of the smallest in the region. In 1991, following the Persian Gulf War, Bahrain signed a defense cooperation agreement with the United States. Bahrain is the headquarters for the U.S. Navy's Fifth Fleet. The United Kingdom maintains a small military presence.

Medical care is extensive and free, and there is provision for most forms of social security: pensions, sick pay, compensation for industrial injury, unemployment benefits, and maternity and family allowance payments. The government also sponsors public housing projects that are partially funded by its gulf neighbours.

Bahrain's constitution requires the government to help provide housing for any citizens unable to obtain adequate shelter through their own resources. Nearly three-fifths of all Bahrainis have benefited from government housing assistance in some way, and the government has likewise expended significant resources in recent decades to develop associated infrastructure. In 2001 the government inaugurated a new program to extend housing assistance to rural towns and villages.

Bahrain's public education system, founded in 1932, is the oldest in the Arabian Peninsula. Public education is free for both boys and girls at the primary, intermediate, and secondary levels and is mandatory for all children aged 6 to 14. Private and religious schools are available as well. The University of Bahrain, Arabian Gulf University, and the College of Health Sciences are institutions of higher learning. The vast majority of the population is literate, and Bahrain has the highest female literacy rate in the Persian Gulf.

Bahrain's island location has made it unique among Persian Gulf states. With greater access to ocean travel and broader exposure to outside influences, Bahrain traditionally has been home to a more ethnically and religiously diverse and cosmopolitan population than have other, more insular gulf states. This openness is reflected in Bahrain's social customs, which—although still conservative—are much more moderate and relaxed than those of its neighbours, particularly conservative Saudi Arabia. Thus, although Bahrain is still at heart an Arab-Islamic country, it has been more accepting of modernization and Westernization than many of its neighbours.

The official holidays in Bahrain are generally the same as those observed in most Muslim countries. These include the two ʿīds (festivals), Īd al-Fiṭrʿ and Īd al-Aḍḥāʿ, the Prophet Muhammad's birthday, and, more recently, the celebration of ʿĀshūrā (Āshūrāʾʿ) among the country's Shīʿites.

Western-style clothing is common in Bahrain, though some men still wear the traditional thawb (full-length tunic) and the kaffiyeh (white head cloth), bound in place by a black, camel-hair cord known as an ʿiqāl—the latter often more ornate, particularly among the political elite. The dress rules for women are relaxed compared to the more conservative, regional standards, although women in rural areas, and those in conservative communities in cities, still wear the veil (ḥijāb) and a traditional long cloak known as an ʿabāyah.

Coffee is an important part of social life. Coffee shops are popular meeting places, and coffee is offered as a sign of hospitality. It is often flavoured with cardamom and saffron. Bahraini cuisine typically features fish, shrimp, meat, rice, and dates. Machbous is a popular traditional dish of fish or meat served with rice. Other typical food includes muḥammar, sweet brown rice with sugar or dates, and shāwarmah, spit-roasted lamb, beef, or chicken.

Music is an important part of Bahraini life. There is a rich folk music culture, and fidjeri, songs once sung by pearl divers, are still heard. Since 1991 the country has held an annual music festival. Although the country does not have a film industry, moviegoing is a popular activity, and some of Bahrain's cinema theatres screen English-language films. In the early 21st century the government undertook a program to encourage the development of theatre.

Bahrain has several museums, including the Bahrain National Museum and Beit al-Qurʾān, which houses a large collection of Qurʾāns, some dating to the 7th century. There are also museums devoted to the history of petroleum production and to pearl diving as well as several art galleries. The Bahraini Ministry of Education maintains a network of public libraries, the oldest of which, in Manama, opened in 1946. The emirate also maintains one of the principal wildlife conservation areas in the Persian Gulf region, Al-Areen Park, which harbours such indigenous mammals as the oryx and gazelle and is visited by many waterfowl species.

Football (soccer) is the most popular modern sport, while horse racing remains a national pastime. More than 20 types of Arabian horses are bred on the islands, and races are held weekly on Bahrain island's large racecourse, which seats some 10,000 spectators. Traditional sports such as falconry and gazelle and hare hunting are still practiced by wealthier Bahrainis, and camel racing is a popular public entertainment. The country first competed in the Summer Olympic Games in 1984; it has not participated in the Winter Games.

Several weekly and daily papers are published in Arabic, and a small number appear in English. Most of the press is privately owned and is not subject to censorship as long as it refrains from criticizing the ruling family. The state television and radio stations broadcast most programs in Arabic, although there are channels in English.

This discussion focuses on Bahrain since the 19th century. For a treatment of earlier periods and of the country in its regional context, see Arabia, history of.

Bahrain has been inhabited since prehistoric times, and several thousand burial mounds (burial mound) in the northern part of the main island probably date from the Sumerian period of the 3rd millennium BC. It was the seat of ancient Dilmun (Telmun), a prosperous trading centre linking Sumeria with the Indus Valley about 2000 BC. The archipelago was mentioned by Persian, Greek, and Roman geographers and historians. It has been Arab and Muslim since the Muslim conquest of the 7th century AD, though it was ruled by the Portuguese from 1521 to 1602 and by the Persians from 1602 to 1783. Since 1783 it has been ruled by sheikhs of the Khalīfah family (Āl Khalīfah), which originated in the Al-Ḥasā province of Arabia.

Several times during the 19th century, the British intervened to suppress war and piracy and to prevent the establishment of Egyptian, Persian, German, or Russian spheres of influence. The first Bahraini-British treaty was signed in 1820, although the country's British-protected status dates from 1861, with the completion of a treaty by which the sheikh agreed to refrain from “the prosecution of war, piracy, or slavery.” Thus, Britain assumed responsibility for the defense of Bahrain and for the conduct of its relations with other major powers. In 1947 this protection briefly became the responsibility of the government of British India, which had both commercial and strategic interests in the Persian Gulf, but it reverted to Britain following India's independence. Until 1970 the government of Iran periodically advanced claims to sovereignty over Bahrain, but these were repudiated.

Britain's decision to withdraw all of its forces from the gulf in 1968 led Sheikh ʿIsā ibn Sulmān Āl Khalīfah to proclaim Bahrain's independence in August 1971. A treaty of friendship was signed with the United Kingdom, terminating Bahrain's status as a British protectorate, and Sheikh ʿĪsā was designated the emir. Bahrain then became a member of the United Nations and the Arab League.

After independence, tensions mounted between the predominantly Shīʿite population and Sunni leadership—especially following the 1979 revolution in Iran. The political unrest was fueled by economic and social grievances related to the fall in oil prices and production, cutbacks in public spending, and continued discrimination against the majority Shīʿite population.

In 1981 Bahrain joined with five other Arab gulf states in forming the Gulf Cooperation Council (GCC), which has led to freer trading and closer economic and defense ties. During the Persian Gulf War (1990–91), Bahrain made its port and airfields available to the coalition forces that drove Iraqi forces out of Kuwait. Although more moderate than Saudi Arabia, Bahrain has generally followed that country's lead in most foreign policy decisions. The construction of the causeway linking Bahrain with Saudi Arabia has strengthened bilateral relations and regional defense and has helped both countries economically and politically. Bahrain has maintained relatively good relations with the United States and has continued to house the U.S. Navy's Fifth Fleet. Iran's ties to the country's Shīʿite community, its territorial claims to the island, and its displeasure with the American presence in Bahrain have helped to strain relations between it and Bahrain. Resolution in 2001 of the dispute between Bahrain and Qatar over the Ḥawār Islands improved their already warming relations.

Sheikh Ḥamad ibn ʿIsā Āl Khalīfah, who assumed power on the death of his father in March 1999, released a number of imprisoned Shīʿite dissidents and other individuals later that year in a bid to ease tensions. These changes led in 2001 to a referendum—overwhelmingly supported by Bahrainis—that ratified the National Action Charter. The charter was followed in 2002 with the promulgation of a new constitution that established a constitutional monarchy in Bahrain, called for equality between Sunnis and Shīʿites, and guaranteed civil and property rights to all citizens.