Bahrain (Al-Bahrayn)

If the Gulf crisis severely affected Bahrain’s reputation as a safe haven for foreign investors, it was not only the economic impact which disturbed the Bahrainis. Iraq’s invasion of Kuwait dominated Bahrain’s political scene from the start of August. The Kuwait crisis caused Bahrain considerable disorientation and loss of confidence. An additional development resulting from the Kuwait crisis was a significant improvement in Bahraini-Iranian relations. The Kuwait crisis influenced Bahrain’s behavior in the Arab arena significantly. Bahrain appreciated the US response to the Iraqi challenge and undoubtedly took pride in its long-standing relationship with the superpower. Excluding Kuwait, Bahrain was the GCC state most severely affected by the economic trauma of the Iraqi invasion. The reverberations of the Kuwait crisis affected the monarchic system of government in Bahrain, eroding its credibility to some extent. ‘Isa’s involvement in Bahraini politics gradually declined during the year.