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Bahrain is located near the western side of the Persian Gulf, and is comprised of 33 islands. It is a fast growing economy in the Middle East, relying heavily on oil and refinery products, with petroleum production and processing accounting for 11% of its GDP. Bahrain faces long-term challenges of depleting oil and underground water resources, as well as unemployment.

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Bahrain is a small island country located near the western shores of the Persian Gulf .Bahrain is an archipelago of 33 islands. Known for its oil and pearls, Bahrain is also home to many impressive and important structures, including the world trade center and the Bahrain financial harbor. The Bahrain formula one grand prix takes a place at the Bahrain international circuit.

Bahrain is the fastest growing economy in the Arab world. The Bahrain economy is highly dependent on oil and refinery products. Petroleum production and processing is Bahrain's most exported product accounting for 60% of its export receipts, 70% of government revenues, and 11% of its GDP. Aluminum production is the second biggest export. Bahrain also has highly developed communication and transport facilities.

Construction is ongoing for several major industrial projects. Unemployment, especially among the young, and the depletion of oil and underground water resources are major long-term economic challenges faced by Bahrain. In September 2004 Bahrain signed a Free Trade Agreement (FTA) with the United States - the first such agreement undertaken by a Gulf state. Both countries must ratify the FTA before it is enforced.