Stryker,
Bahrain isn't so bad...I lived there in the late 80s when it was still nothing and growing fast. Today, they have diving, an F1 Grand Prix, and just about anything to keep you busy on such a small island. Also, remember you are that much closer to other larger countries and places in the far east like Phuket.
Anyway, I have not done any diving in Bahrain itself, but I have dived the Persian Gulf and the indian ocean side of the UAE...Dubai. What I have found is that the operations are run by Brits for the most part and they tend to be very professionally managed. The dive sites are still being discovered, but they're great. I dove oil tanker wrecks, and several reefs. Visibilty was 100+ and animal life was decent. I think the industry can still grow a lot over there because most are not aware of this sport. Most divers I found were tourists or expats...I ended up with 4 Navy divers myself which was cool.
Goodluck to you and I am sure you'll find it to be a great experience. Remember, once you hook up with some divers, you can pretty much go where you want.