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Many large financial institutions have a presence in Manama, the country's capital.

It has a high Human Development Index and is recognised by the World Bank as a high-income economy.

Nearchus is believed to have been the first of Alexander's commanders to visit the island, and he found a verdant land that was part of a wide trading network; he recorded: "That on the island of Tylos, situated in the Persian Gulf, are large plantations of cotton trees, from which are manufactured clothes called sindones, of strongly differing degrees of value, some being costly, others less expensive.

According to historian Al-Juwayni, the stone was returned 22 years later in 951 under mysterious circumstances.The region stretched from Basra in Iraq to the Strait of Hormuz in Oman. The exact date at which the term "Bahrain" began to refer solely to the Awal archipelago is unknown.From the sixth to third century BCE, Bahrain was part of the Achaemenid Empire.In 1783, the Bani Utbah clan captured Bahrain from Nasr Al-Madhkur and it has since been ruled by the Al Khalifa royal family, with Ahmed al Fateh as Bahrain's first hakim.In the late 1800s, following successive treaties with the British, Bahrain became a protectorate of the United Kingdom. Formerly an emirate, the Arab constitutional monarchy of Bahrain was declared a kingdom in 2002.

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