It was one of the first states in the Gulf to discover oil and to build a refinery; as such, it benefited from oil wealth before most of its neighbours.

Bahrain never reached the levels of production enjoyed by Kuwait or Saudi Arabia and has been forced to diversify its economy.

The country has been headed since 1783 by the Khalifah family, members of the Bani Utbah tribe, who expelled the Persians. From 1861, when a treaty was signed with Britain, until independence in 1971, Bahrain was virtually a British protectorate.

 

The king is the supreme authority and members of the Sunni Muslim ruling family hold the main political and military posts. There are long-running tensions between Bahrain's Sunnis and the Shi'ite Muslim majority. On occasion, these have spilled over into civil unrest.

 

In 2001 Bahrainis strongly backed proposals put by the emir - now the king - to turn the country into a constitutional monarchy with an elected parliament and an independent judiciary.

Elections were duly held in 2002 for a 40-member parliament, the Council of Deputies. It was the first such poll in nearly 30 years. The new body included a dozen Shi'ite MPs.

The country has enjoyed increasing freedom of expression, and monitors say the human rights situation has improved. However, opposition groups and campaigners continue to press for political reforms, including greater powers for the elected assembly.

 

However, in early 2011 the government called in the Saudi military to crush protests by demonstrators demanding a greater say in government and an end to what Shias said was systematic discrimination against them in jobs and services.

Thousands of demonstrators had gathered for several days in the centre of Manama, inspired by the popular uprisings which toppled the leaders of Tunisia and Egypt. Several people were killed in clashes with security forces.

 

Bahrain - a chain of around 30 islands - is a haven for tourists from the region, who take advantage of its relaxed social environment. A close ally of the US, it is home to the American navy's Fifth Fleet.

Sheikh Hamad's title changed to king when Bahrain switched from being an emirate to a monarchy in February 2002.

 

He had been crown prince since 1964, when, on the death of his father Sheikh Isa in March 1999, he became emir.

 

Born in 1950, he was educated at a public school in Cambridge, England, and went on to study at Mons Officer Cadet School in Aldershot, England, and at the US Army Command and Staff College, Fort Leavenworth, Kansas.

 

In 1968, he founded and became commander-in-chief of the Bahrain Defence Force (BDF). He served as minister of defence from 1971 to 1988.

The government has over the years faced protests from the Shia majority, with demonstrators saying the ruling Sunni minority shuts them out of housing, healthcare and government jobs.

The country saw a wave of anti-government unrest in 2011 - inspired by the uprisings in Tunisia and Egypt. The government used violence to try end the protests, in which some several people were killed. It also called in Saudi Arabian troops.