In a region currently experiencing an unprecedented 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 Bahrain, petroleum production and processing account for about 60% of export receipts, 60% of government revenues, and 30% of GDP. Economic conditions have fluctuated with the changing fortunes of oil since 1985, for example, during and following the Persian Gulf crisis of 1990-91. With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Persian Gulf. A large share of exports consists of petroleum products made from imported crude. Construction proceeds on several major industrial projects. Unemployment, especially among the young, and the depletion of both oil and underground water resources are major long-term economic problems.
Bahrain is sometimes described as the "Middle East lite" a country that mixes thoroughly modern infrastructure with a definite Persian Gulf identity, but unlike other countries in the region its prosperity is not solely a reflection of the size of its oil wealth, but also related to the creation of an indigenous middle class. This unique socioeconomic development in the Persian Gulf has meant that Bahrain is generally more liberal than its neighbours. While Islam is the main religion, Bahrainis have been known for their tolerance, and alongside mosques can be found churches, a Hindu temple, a Sikh Gurudwara and a Jewish synagogue. The country is home to several communities that have faced persecution elsewhere.
Arabic is the official language of Bahrain. The two main dialects are Baharna Arabic, spoken by the indigenous Baharna Shia, and Bahraini Arabic spoken by the indigenous Sunnis. Persian, Urdu/Hindi, English and Malayalam are also spoken by sections of the population.
