Muharraq Island, formerly known as Moharek, is the second largest island in the archipelago of Bahrain after Bahrain Island. It lies 4 km east of the capital, Manama, on Bahrain Island. The island is named after Muharraq City, the former capital of Bahrain. The Al Khalifa dynasty settled there in the nineteenth century and resided there until 1923. The island domiā¦Muharraq Island, formerly known as Moharek, is the second largest island in the archipelago of Bahrain after Bahrain Island. It lies 4 km east of the capital, Manama, on Bahrain Island. The island is named after Muharraq City, the former capital of Bahrain. The Al Khalifa dynasty settled there in the nineteenth century and resided there until 1923. The island dominated the trade, fishing and especially pearls industries in Bahrain. The pearl center was made a UNESCO world heritage site in 2012. In recent years, major reclamation of artificial islands like Amwaj Islands has taken place north of Muharraq Island. In the south of the island, at Hidd district, the new Bahrain International Investment Park of the free zone was built. In the far south, new Khalifa bin Salman harbor opened in 2009.