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Along the north and northwest coast, there are some springs and aquifers that are used for irrigation. The climate is humid for much of the year, but the country suffers from a scarcity of rainfall which averages three inches a year, falling almost entirely in the winter.

The United States military buildup in the area also created a tense relationship between Bahrainis and American troops. They come mainly from other Arab nations but also from India, Pakistan, Southeast Asia, Europe, and America.

The 1970s and 1980s saw a dramatic rise in the price of oil, which benefitted the economy significantly.

In the late 1980s, when other countries in the area experienced economic difficulties, Bahrain maintained its prosperity thanks to earlier economic diversification.

Manama has modern buildings and wide, tree-lined roads as well as an older section with a traditional souk, or marketplace.

Muharraq is the oldest town, and used to be the capital.

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