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Background In 1783, the al-Khalifa family captured Bahrain from the Persians. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. King HAMAD bin Isa al-Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shia community. Shia political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shia political society, won the largest number of seats in the elected chamber of the legislature. However, Shia discontent has resurfaced in recent years with street demonstrations and occasional low-level violence. Population 738,004 Government type 5 governorates; Asamah, Janubiyah, Muharraq, Shamaliyah, Wasat Administrative divisions constitutional monarchy Independence National Day, 16 December (1971); note - 15 August 1971 was the date of independence from the UK, 16 December 1971 was the date of independence from British protection International organization participation red, the traditional color for flags of Persian Gulf states, with a white serrated band (five white points) on the hoist side; the five points represent the five pillars of Islam Economy - overview Market value of publicly traded shares petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism Agriculture - products -1.2% (2009 est.) Industries 10.25 billion kWh (2007 est.) Industrial production growth rate 10.1 billion kWh (2007 est.) Electricity - production 0 kWh (2008 est.) Oil - production 238,300 bbl/day (2007 est.) Internet country code 402,900 (2008)