Al Budaiya is a coastal town located in the northwestern region of Bahrain Island, in the Northern Governorate of the Kingdom of Bahrain. It neighbors the villages of Diraz and Bani Jamra.
Budaiya is the most fertile area in the country, irrigated from a large concentration of freshwater springs and aquifers. It is the location of most farms, stables, and traditional gulf family farms/retreats nakhal. The town serves as one end-point of the Budaiya Road, which runs to Manama. The regions on either side of road are colloquially referred to as Budaiya.
The biggest problem the Budaiya Road region is facing is deforestation due to a waves of construction, and the seeping of sea water into natural underground aquifers as a result of the pre-construction building process of the Mina Salman seaport in the 1950s. Budaiya Road is still remembered as one of the only "naturally shaded" parts of Bahrain where thousands of wild palm trees acted as filters from the hot, glaring desert sun. Most of the trees were cut down to expand the route and 'modernize' the area.
The town was founded by the Dawasir tribe, but most of the tribe left en masse to mainland Saudi Arabia in 1923, after a conflict with the British colonial authorities. Many Dawasir tribe members later returned to Budaiya, with some still living in the village today. Prior to the discovery of oil in Bahrain, most Budaiya residents were involved in the pearl diving and fishing industry.