A spec on the map in a region dominated by its much larger neighbors Saudi Arabia and Iran, Bahrain nevertheless was used to playing important roles in regional and world affairs. In 1932 oil was discovered in the country, and the first oil wells anywhere in the Middle East were drilled in Bahrain. As the other minor Arab nations, they enjoyed a degree of autonomy from Britain in governing their own affairs, and in WW II they chose to side with the Allies. After WW II and the British pullout from the region, they sought to join the United Arab Emirates, but negotiations led nowhere. So Bahrain declared independence as a separate state.

On this day, August 14, in 1971 Bahrain withdrew its proposal for an alliance with the UAE and declared independence.

Cementing their legitimacy against their larger neighbors would not be easy, but Bahrain benefited from the skyrocketing oil price after the 1973 Arab-Israeli war. For its newly wealthy neighbors Bahrain offered the perfect financial center for the region. Bahrain boasted a large educated workforce and some of the world’s soundest fiscal regulations. It also dominated the region’s transportation hub, with their flagship airline Gulf Air dominating routes to the Gulf, and the Concorde itself flying regular routes from London to Manama.