In 1783, an alliance of Sunni Arab clans from the Arabian coast invaded and took control of Bahrain from the Persians, establishing an independent emirate. Oil was discovered in 1932 and modernisation began immediately. The discovery also prompted the United Kingdom to strengthen its ties with the emirate and it established a number of bases there. After World War II, increasing anti-British sentiment spread throughout the Arab World and led to riots in Bahrain. However, it was not until 1971 that they finally withdrew from Bahrain, making it once again an independent emirate. Bahrain's economic development since then has been nothing short of astounding, and the on-going diversification of its economy, particularly into the banking and tourism sector, has been used as a template in other oil producing countries.

Property Market Overview

Bahrain's property market had been enjoying a decade of exponential growth but many experts feared that its reliance on the banking sector, oil revenues and property would mean that the global financial downturn would completely reverse recent gains. However, Bahrain is so far proving resilient and what looked like being a perfect storm of low oil prices, a collapsing banking sector and lack luster property purchases is yet to have the sort of effect one would have thought.

In fact, a property price correction might be of benefit to Bahrain - developers in the capital Manama have reported property price growth of up to 600 per cent over the past three years with prices in smaller towns and resort areas rising by as much 400 per cent.

Rental rates have also risen. In 2008, the average rent for a three-bedroom apartment in Manama is BHD781 (US$2,072) per month - an increase of 11.3 per cent on 2007, according to UN International Civil Service Commission.

Bahrain's liberal real estate laws, the absence of income tax, and readily available home financing have also helped to keep the island to the fore of the regional pack and have buffered it from the worst of the global downturn. Foreigners can now freely buy property and rent it out in Manama city districts such as Ahmed Al-Fateh, Hoora, Bu Ghazal, Seef, and Northern Manama. Foreigners can also buy in Durrat Al-Bahrain, Amwaj Islands, and Dannat Hawar - reclaimed areas earmarked for tourist developments. Also, once an overseas investor purchases a property in Bahrain they are granted residency rights.

A number of international real estate and investment firms have been establishing branches in Bahrain with a view to capitalising on the regional demand for property assets that comply with Islamic Sharia Law. CapitaLand Amanah Pte. Ltd. Recently announced that it was to invest in and provide advisory services in the area. The firm estimated at the time that the global Islamic financial market is currently estimated to be worth up to US$300 billion. To meet sharia law requirements, the funds of the new unit cannot be invested in properties that are leased to organisations that engage in activities such as pork handling, pornography, arms and alcohol.

Essential information

Location
The Kingdom of Bahrain is a Middle Eastern archipelago in the Persian Gulf, tucked into a pocket of the sea flanked by Saudi Arabia and Qatar.

Area
Total: 665sq km
Land: 665sqn km
Water: 0sq km

Population
718,306, 235,108 of whom are non-nationals

Language
Arabic is the most commonly spoken language although English is also prevalent. Significant Farsi and Urdu-speaking minorities also live in Bahrain.

Religion
Bahrain is a predominantly Muslim country with 81.2 per cent either Shia and Sunni. However, due to it's large immigrant population some 9 per cent are Christian while a further 9.8 per cent designate themselves as 'other'.

Currency/Money
Bahraini dinar (BHD)

Climate
The dust bowls from Iraq and Saudi Arabia make fine dust particles easily transported by northwesterly winds which cause visibility reductions in the months of June and July. The summer is very hot since the Gulf waters provide low levels of moisture supply. Seas around Bahrain are very shallow, heat up quickly in the summer, and produce high humidity, especially in the summer nights. In those periods, summer temperatures may reach about 35 ?C (95 ?F). Rainfall in Bahrain is minimal and irregular.

International dialling code
+973

Capital
Manama

Electricity
220V/50Hz UK plug

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History

In 1783, 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.

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Government

Bahrain is a constitutional monarchy headed by the King, Shaikh Hamad bin Isa Al Khalifa; the head of government is the Prime Minister, Shaikh Khal?fa bin Salman al Khalifa, who presides over a cabinet of twenty-three members. Bahrain has a bicameral legislature with a lower house, the Chamber of Deputies, elected by universal suffrage and an upper house, the Shura Council, appointed by the king. Both houses have forty members. The inaugural elections were held in 2002, with parliamentarians serving four year terms. The opening up of politics has seen big gains for both Sh?a and Sunn? Islamists in elections, which have given them a parliamentary platform to pursue their policies. This has meant that what are termed "morality issues" have moved further up the political agenda. Bahraini liberals have responded to the growing power of religious parties by organizing themselves to campaign through civil society in order to defend basic personal freedoms from being legislated away.

Economy

In a region experiencing an oil boom, Bahrain has the fastest growing economy in the Arab world, the United Nations Economic and Social Commission for Western Asia found in January 2006. Bahrain also has the freest economy in the Middle East according to the 2006 Index of Economic Freedom published by the Heritage Foundation/Wall Street Journal, and is twenty-fifth freest overall in the world. In 2008, Bahrain was named the world's fastest growing financial center by the City of London's Global Financial Centers Index. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom. In Bahrain, petroleum production and processing account for about 60 per cent of export receipts, 60 per cent of government revenues, and 30 per cent of GDP. Economic conditions have fluctuated with the changing fortunes of oil since 1985, for example, during and following the Gulf crisis of 1990-91. With its highly developed communication and transport facilities, Bahrain is home to multinational firms.

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Visas

Citizens of following countries can obtain 14-day visa at all border stations and airports for a nominal fee of 5 dinar: Andorra, Armenia, Australia, Austria, Azerbaijan, Belarus, Belgium, Brunei, Canada, China, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Iceland, Ireland (3 months), Italy, Japan, Kazakhstan, Kyrgystan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Monaco, Netherlands, New Zealand, Norway, Portugal, Russia, San Marino, Singapore, Spain, Sweden, Switzerland, Tajikistan, Thailand, Turkey, Turkmenistan, Ukraine, United Kingdom (3 months), United States, Uzbekistan, Vatican City. Bahrain is among the few Gulf states that officially accepts Israeli Passports and passports with evidence of visits to Israel.

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Healthcare

The only major health concern for visitors to Bahrain stems from the heat - temperatures April through August can hit 55?C with high humidity. It is important to stay hydrated, especially if you are outdoors during the day. Bottled water is sold practically everywhere in the city from 'Cold Stores' and small restaurants at very reasonable prices.

Travel

Bahrain International Airport (IATA: BAH), in Muharraq just east of Manama, is the main base for Gulf Air [3] and has excellent connections throughout the region and London. The 26-km King Fahd Causeway connects Bahrain and Saudi Arabia. (Information from en.wikipedia.org and wikitravel.org).

Top tips for Bahrain property
Guide to buying condos in Bahrain
Guide to buying houses and land in Bahrain

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