Manama, also Al Manamah, city in northeastern Bahrain, capital of the country, on the northeastern shore of Bahrain Island, in the Persian Gulf, near Dhahran, Saudi Arabia. The port developed and the city began to be modernized in the 1950s and 1960s, as a result of proceeds from the sale of petroleum. Industries include oil refining, dhow (an Arab boat with triangular sail) building, fishing, and pearling; pearling was once the city's chief economic activity. The town is connected by a causeway with adjoining Al Muḩarraq, site of an international airport. In 1958 Manama was declared a free-transit port. The Arabian Gulf University (1980) and the University of Bahrain (1986) are here. Population (2003 estimate) 138,643.