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Pearl Roundabout has been transformed into a makeshift camp where protesters have kept daily vigil in hundreds of tents.
Thousands massed there last Saturday and then marched along the highway eventually making their way back to the roundabout.
A shrine has also been erected in memory of the seven people who died in clashes with security forces.
In order to maintain stability and unity, His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Deputy Supreme Commander, ordered the military off the streets and instructed the police to withdraw from the area. "People are now able to demonstrate freely on the Pearl Roundabout and can continue to do so," a government spokesman said.
HRH The Crown Prince is also continuing to meet political societies and leaders with a view to reaching consensus on a formalised process of national dialogue. His priority is to ensure the participation of all political groups so that everyone can get round the table.
Opposition campaigner Hassan Mashaima has also returned to Bahrain after receiving medical treatment in the UK and having charges against him dropped.
In a further move on the political front, His Majesty King Hamad this week formally swore in new ministers covering five cabinet portfolios.
Former Labour Minister, Dr Majeed bin Mohsen Al Alawi will be the new Minister of Housing replacing Shaikh Ebrahim bin Khalifa Al Khalifa.
Current Oil and Gas Minister, Abdul Hussain bin Ali Mirza will take portfolio responsibilities for Electricity and Water within a new, expanded Energy Ministry. Fahmi Bin Ali Al Jowdar was the previous Electricity and Water Minister.
Dr Nezar Al Baharnah leaves the Ministry of Foreign Affairs to become Minister of Health replacing Faisal Bin Yaqoub Al Hammar.
Jameel Humaidan becomes Minister of Labour following several years as Under-Secretary in the Ministry of Labour.
Kamal bin Ahmed Mohammed, former COO of the Bahrain Economic Development Board, becomes the new Minister of Cabinet Affairs replacing Shaikh Ahmed bin Atiyatallah Al Khalifa.
In the royal decree, King Hamad also announced that all Government housing loans will be reduced by 25 per cent, benefiting more than 35,000 families at a cost of BD127 million.
