Cost of living in Bahrain

It has also endeavored to become a leading regional banking center, especially with respect to Islamic finance. Bahrain's small size, central location among Gulf countries, economic dependence on Saudi Arabia, and proximity to Iran require it to play a delicate balancing act in foreign affairs among its larger neighbors. Its foreign policy activities usually fall in line with Saudi Arabia and the UAE. In 2022, the United States designated Bahrain as a major non-NATO ally. The Sunni royal family has long struggled to manage relations with its Shia-majority population. In 2011, amid Arab uprisings elsewhere in the region, the Bahraini Government responded to similar pro-democracy and reform protests at home with police and military action, including deploying Gulf Cooperation Council security forces. Ongoing dissatisfaction with the political status quo continues to factor into sporadic clashes between demonstrators and security forces. In 2020, Bahrain and the United Arab Emirates signed the US-brokered Abraham Accords with Israel. In 2023, Bahrain and the United States signed the Comprehensive Security Integration and Prosperity Agreement to enhance cooperation across a wide range of areas, from defense and security to emerging technology, trade, and investment.