Bahrain’s history dates back to the Middle Palaeolithic age and thousands of stone artefacts that have been discovered are proof. This country was the seat of the Dilmun Trading Empire in the 3rd millennium BC in the Bronze Age. Known in the Babylonian creation myth as the "paradise to which heroes and wise men are transported to enjoy eternal life", Dilmun controlled a large section of the Gulf till 1600 BC, but by 600 BC it was absorbed by Babylon. In the 4th century AD, the Sassanians, who were Zoroastrians from Persia, annexed the islands. The Nestorian sect of Christianity was established in Bahrain by 5th century AD.
Bahrain was the first of the states outside the Arabian mainland to convert to Islam (after they received a letter from Prophet Mohammed). This conversion changed the whole culture of Bahrain. Christians and Muslims lived together harmoniously for two centuries.From 9th to the 11th centuries, Bahrain was first a part of the Umayyad and then Abbasid empires. Under the Abbasids it became a stronghold of Shi’ite Islam. It was also one of the leading pearling ports of the Gulf. Bahrain remained part of the Persian Empire till the 17th century.
In the mid 18th century, the Al-Khalifa family (currently the ruling family) arrived in Bahrain, involving the nation in the pearl trade. They drove the Persians out of Bahrain, were expelled by the Omanis within three years, and returned victorious in 1820. They signed an Exclusive Agreement treaty with the British agreeing to abstain from piracy. Updated in 1835 and in 1861 it gave the Bahrainis military protection from attack in exchange for control of their foreign affairs, virtually their independence. Britain thus protected its routes to India. It kept out of local politics and did indeed protect Bahrain from Turkey and Iran. Just when the world pearl market was collapsing, Bahrain became the first country where oil was discovered (1925). British interest naturally intensified. The main British naval base in the region was shifted to Bahrain in 1935 and the Political Residency shifted there in 1937.
Shaikh Hamad bin Ali, and his son Shaikh Salman who succeeded him in 1942, actually began the modernization process. With the tremendous increase in oil production, Bahrain became the Gulf’s main entrepot. Bahrain became independent on 14th Aug 1971. The Emir issued the constitution, drafted by a Constituent Assembly, in May 1973. An elected national assembly was convened in Dec 1973, to be dissolved twenty months later because the Emir found the radical assembly impossible to work with. Bahrain became a member of the United Nations and the Arab League in 1971.
The economy boomed with the high prices of oil. In recent years with the decline in the production of oil, the economy has become more diversified and less oil dependent. In 1981 Bahrain joined Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates to form a Gulf Cooperation Council (GCC). In 1990 while Bahrain’s relationships with Iran improved, they soured with Iraq during the Gulf War. Strained relationships exist between Qatar and Bahrain over the ownership of the Hawar Islands. Sporadic unrest has disturbed Bahrain since 1994 because the Emir refused to accept a petition, signed by 25,000 citizens, demanding greater democracy, restoration of an elected National Assembly and a more equal distribution of wealth. This unrest has been accompanied by riots, arson and bomb blasts in 1997, and the Bahrain Freedom Movement has accused the Bahraini government of torturing and detaining the people.