In a televised speech on Tuesday, King Hamad bin Isa Al Khalifa told Bahrainis that he remained committed to a reform process launched 10 years ago, adding that it "marked the launch of a development and modernisation process, which is still moving forward to meet the aspirations of our loyal people in all areas".
He also said he had pardoned 291 prisoners.
The opposition dismisses the reform process as cosmetic and says that the released prisoners do not include those detained during last year's revolt, which was eventually suppressed with the help of Saudi forces.
Al-Wefaq and other opposition parties, including the secular Waad, led by a Sunni politician, want the elected Parliament to be able to form governments. Instead, they have been afforded greater scrutiny.
Shias, who account for about 70 per cent of Bahrain's population of 525,000, remain angry about what they see as their treatment as second-class citizens, denied many state jobs and given less access to good housing than the kingdom's Sunni minority.
The United States has suspended a US$53 million ($63.6 million) arms deal until it sees "more progress" on political reform. But Bahrain's authorities largely escaped the kind of international censure levelled at other regimes undermined by the Arab Spring. Geographically close to Iran, the island kingdom is home to the US Navy's Fifth Fleet.
The authorities have hired US and British police chiefs - including the former Metropolitan Police Assistant Commissioner John Yates - to assist in reform in the wake of last November's commission report, which heavily criticised the handling of the 2011 protests, including the use of torture against detainees. Forty people died during the protests or are in detention.
Reuters reported that on the eve of yesterday's anniversary, hundreds of protesters broke away from an authorised opposition rally to head for the Pearl Roundabout before police stopped them with tear gas and rubber bullets.
- Independent