Prices in the capital city of Manama have risen sharply, partly due to the state of the world economy, but also as a result of the current political instability in Bahrain.

Experts have said the world financial crisis in 2007 and 2008, the recent European monetary crisis, and the internal political troubles of 2011 have battered the Bahraini economy.

Banks are seeking mergers in order to survive, and the industrial sector has declined by 26.7 per cent, according to a March 2012 report..

Al Jazeera's Mohammad Vall reports from Manama.