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A Special International Report Prepared by The Washington Times Advertising Department - Published on March 21, 2000

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Advertisers

 Bank of Bahrain and Kuwait B.S.C.

 Sheraton Bahrain Hotel

 John J. Nowell and Zodiac Publishing

 Arab Banking Corporation (B.S.C)

 ABC Islamic Bank (E.C.)

 First Islamic Investment Bank E.C.

 Al-Ahi Bank

 Arados Car Hiring

 The Bahrain Petroleum Company B.S.C. (Closed)

 Abdulla Ahmed Nass Group

 Gulf Petrochemical Industries Co. (B.S.C.)

 Khazana

 Bahrain Tourism Affairs

 Le Royal Meridien

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A Special International Report Prepared by The Washington Times
Advertising Department
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Written by:
Barbara G. B. Ferguson
Project Director:
Hala Nasreddine
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The Washington Times International Advertising Department
at (202) 636-3035
(202) 635-0103 fax
e-mail: natlad@wt.infi.net

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Copyright © 2000 News World Communications, Inc.

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The Al Khalifa Dynasty - Ruling Bahrain Since 1783

Shaikh Ahmed bin Mohammed Al Khalifa, who conquered Bahrain in 1783, founded the Al Khalifa dynasty. From the 18th century on, the history of Bahrain is closely linked to this dynasty. The Al Khalifas were related to the Utoob, a confederation of Arab tribes who migrated from their original homes in Nejd (central Saudi Arabia) to the shores of the Arabian Gulf at the end of the 17th century. A large group traveled to Qatar and to Bahrain in 1701, and another branch settled in Kuwait.

From the beginning, the Al Khalifa dynasty encouraged commercial success, seafaring and pearl fishing. They also went into shipbuilding to secure the major sea links with the Arabian Gulf, India and Africa.

In 1861, Bahrain signed the Treaty of Perpetual Peace and Friendship with Britain, guaranteeing British intervention in the case of external aggression. And in 1869, Shaikh Isa bin Ali Al Khalifa was named ruler, and his accession ushered in more than half a century of peace and stability.

He abdicated in 1923 in favor of his son, Shaikh Hamad. It was at this time the country entered the oil era, several decades before Saudi Arabia.

When he died in 1942, Hamad was succeeded by Shaikh Sulman, who negotiated the transfer of a number of responsibilities held by the British.

The present emir's late father, Shaikh Isa bin Sulman Al Khalifa, assumed power in 1961 on the death of his father. The country gained full independence in 1971, when Bahrain terminated its political and military treaties with Britain.

During his rule from1961 to March 1999, the late emir successfully steered the island nation through a period that was marked by both independence and rapid economic development.

Bahrain’s new leadership

The current ruler, Amir Hamad bin Isa Al Khalifa, took over the leadership of his country when his father unexpectedly died of a heart attack.

From the moment he took office, the new emir and his government have been eager to underscore the importance of continuity and economic growth, and the government has already received international praise for its adjustments and economic diversity.

Under the guidance of the long-serving prime minister, Sheikh Khalifa bin Salman Al Khalifa, the government has worked hard to maintain a healthy balance between change and conservation, tradition and modernity.

Bahrain: Building on its open society and economic foresight

Through much of its history, Bahrain has been known as a moderate and open society and is proud of its millennium heritage. Its small size belies its importance, and many see Bahrain as the key to security in the Gulf. John Dalton, former Secretary of the U.S. Navy, told the local Gulf Daily News, "As an insider in defense and security matters, I am well aware that the contribution of Bahrain's government to stability in the Arabian Gulf is second to none."

In Washington, and throughout the world, Bahrain has been praised for its liberal and tolerant religious attitude toward non-Muslims, its human rights record, its development at home, the successful liberalization of its economy, its support for the Middle East peace process and for the country's increasingly active role in maintaining regional stability. When the current emir took office, he pardoned more than 500 convicted prisoners and welcomed self-exiled nationals who wished to return.

This February, the U.S. State Department issued a report lauding Amir Hamad for allowing greater access to members of international human rights groups since coming to power. These included visits by Middle East Watch, Human Rights Watch and Amnesty International.

"One of the amir's first official acts was to pardon or release detainees, prisoners, and exiles," noted the State Department's annual report.

"At the government's invitation, the International Committee of the Red Cross continued the series of visits to prisons that it had started in late 1996," it said.

The report also noted a general freedom of the press. "There were no reports that the government revoked press credentials during the year. The government generally afforded foreign journalists access to the country and did not limit their contacts," the world survey of human rights said.

Bahrainis are also understandably proud of United Nations reports on their country; for the fourth consecutive year, Bahrain was awarded the highest Human Development Index in the Arab World. The United Nations Report also ranked Bahrain 43rd among the 174 countries surveyed, and expectations are the country will move into the top 30 when the 1999 report is published. Thus, Bahrain is viewed as the most open and liberal society in the Gulf region. The country is noted for its general openness, which observers say has increased since Amir Hamad came into power, toward internal political groups critical of the regime and religious groups.

Diplomats here also give credit to Bahraini officials, whom they say are genuinely working to improve the circumstances of the Bahraini population.

At the same time, Bahrain is keeping its changes incremental. Observers say internal and external challenges are leading the advisers, politicians and the civil society to move cautiously toward full democracy. And, although Bahrain is still viewed as a leader when compared with many Gulf and Islamic countries, the country still has a way to go to establish a full multi-party Western-style democracy.

Western diplomats in Manama say internal political issues, as well as regional politics (it is one of the world's roughest neighborhoods) have been Bahrain's main preoccupation in the past few years. "With very poor PR," said an American diplomat, "the image of this very friendly and relatively liberal country has, unjustifiably, been splashed with many negative stains."

Many Western diplomats believe the internal unrest a few years ago was directly linked to regional influences. The small island country of Bahrain has often been on the receiving end of threats from its two giant, often unfriendly and always unpredictable neighbors: Iran and Iraq. Both countries are known to be unhappy with Bahrain because of its friendship and close ties with the United States, the stationing of American naval headquarters here and the use of Bahrain facilities during the 1980-1988 Iran-Iraq war. The Iranians even accused Bahrain and other Gulf Cooperation Council members of being part of an American plot to aid Saddam Hussein against them.

This friendship with the United States has not gone unnoticed by the U.S. government, which understands, and appreciates, the value of its regional friend. Adm. William Crowe, former chairman of the Joint Chiefs of Staff said that, "pound for pound, Bahrain is the best ally the U.S. has had in recent times."

And, when Crown Prince Shaikh Salman bin Hamad Al Khalifa visited Washington earlier this year, President Clinton told journalists: "Bahrain is a close friend of the United States and a key partner in the Gulf."

Such praise is not always advantageous when you want to be in good terms with some of your neighbors. In addition, Bahrain's joint GCC policy of supporting the United Arab Emirates in its dispute with Iran over three strategic islands, Greater and Lesser Tumb and Abu Mussa, did not help relations with the hard-line Islamic clergy in Iran.

After the 1991 Gulf war -- when Bahrain joined other GCC members of the U.S.-led coalition to liberate Kuwait -- pro-Iranian Islamists joined forces with pro-Iraq activists and just about anyone else who was against the American presence in the Gulf, and accused the Gulf Arab nations of being American pawns.

Some observers link these factors to a wave of unrest that turned violent in 1994, when local ultra-conservative Muslim youths stoned female athletes who were running through their villages in jogging shorts during an international marathon.

This was followed by sporadic riots and arson attacks - again by local teenagers - against foreign, Arab, Sunni and Shi'a businesses. Then, in 1996, a plot against the country was discovered that involved Iranian intelligence, and members of a hard-line, dissident group called Hezbollah-Bahrain were arrested. The Iranian ambassador was asked to leave and relations between the two nations reached an all-time low, adding to Bahrain's regional problems.

But that was then, and now relations with Iran are definitely on the mend.

Last August, Tehran issued an invitation for Amir Hamad to visit Iran. And in November, Manama issued a similar invitation to Iran's President, Mohammed Khatami. Foreign Minister Sheikh Mohammed bin Mubarak Al Khalifa said he expects the visits to take place this year.

Diplomats here point out that there have not been any acts of violence or unrest since 1994. They also say the real picture is much more complicated than the West's perception of the issue as a Sunni minority ruling over a Shi'a majority, who are in the forefront of demanding political reforms and the reinstatement of parliament.

Amir Hamad's perceived openness since coming into power has won universal praise both at home and abroad. Diplomats and businessmen here are pleased by the opportunities and developments they say are happening in the country, and note that Bahrain's continuing progress, both economically and on human development level, shows no signs of waning.

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Table of Contents

The Al Khalifa Dynasty - Ruling Bahrain Since 1783

H. H. Shaikh Khalifa Bin Salman Al Khalifa, Prime Minister

Johnny Young, U.S. Ambassador to Bahrain

The most liberal economy in Arab world

Bahrain: The financial hub of the Middle East

About Bahrain

Arab Banking Corporation and Arab Banking Corporation Islamic Bank

A Regional Leader with an International Network

The Growing Years

ABC Islamic Bank E.C.

Islamic banks in Bahrain

First Islamic Bank expects continued growth

The Bankers’ Society of Bahrain

Bank of Bahrain and Kuwait

Al-Ahli Commercial Bank embraces the New Millennium

Bapco - Bahrain's oil industry keeping ahead of the times

Gulf Petrochemical Industries Company

ALBA - Bahrain's Aluminum Industry: Keeping Ahead of the Pack

The Abdulla Ahmed NASS Group

The Dilmun Civilization (3200 - 1600 B.C.)

Dilmun cats - a rare Bahraini breed

Pearls

The Jews of Bahrain

“Management, without creativity, is very sterile”

Le Royal Meridien Bahrain

Bab el Bahrain and the souk

Promoting the land of a thousand smiles

Dhows - Bahrain’s Heritage

Transforming Bahrain’s Sheraton Hotel