Bahrain Independence Day occurred on 15 August 1971, when the country declared independence from the British following a United Nations survey of the Bahraini population. The British announced the withdrawal of their troops east of Suez in the early 1960s. Bahrain declared its independence on 15 August 1971, marked by the signing of a friendship treaty with the British that terminated previous agreements between the two sides. Although 15 August is the actual date on which Bahrain gained its independence from the British, the state does not celebrate or mark that date. Instead, the state annually celebrates 16 December as "National Day" to coincide with the day that former ruler Isa bin Salman Al Khalifa ascended to the throne. As such, 16 December is a national holiday and is usually celebrated with firework displays
Bahrain is the site of the ancient Dilmun civilisation.[11] It has been famed since antiquity for its pearl fisheries, which were considered the best in the world into the 19th century.[12] Bahrain was one of the earliest areas to convert to Islam (AD 628). Following a period of Arab rule, Bahrain was occupied by the Portuguese in 1521, who in turn were expelled in 1602 by Shah Abbas I of the Safavid dynasty under the Persian Empire. In 1783, the Bani Utbah clan captured Bahrain from Nasr Al-Madhkur and it has since been ruled by the Al Khalifa royal family, with Ahmed al Fateh as Bahrain's first hakim.
In the late 1800s, following successive treaties with the British, Bahrain became a protectorate of the United Kingdom. In 1971, Bahrain declared independence. Formerly a state, Bahrain was declared a Kingdom in 2002. In 2011, the country experienced protests inspired by the regional Arab Spring. Bahrain had the first post-oil economy in the Persian Gulf. Since the late 20th century, Bahrain has invested in the banking and tourism sectors. Many large financial institutions have a presence in Manama, the country's capital. Bahrain has a high Human Development Index and was recognised by the World Bank as a high income economy.