During theArab Spring in 2012, Saudi Arabia proposed to transform the GCC into a "Gulf Union" with tighter economic, political and military coordination, a move considered to be intended to counterbalanceIranian influence in the region;[13] however, objections were raised by other countries.[14][15] In 2014, Bahraini prime ministerKhalifa bin Salman Al Khalifa said that current events in the region highlighted the importance of the proposal.[16] ThePeninsula Shield Force is the military arm of the GCC, formed in 1984.[17]
History and founding
Sheikh Jaber Al-Ahmad Al-Sabah of Kuwait, alongside the support ofSheikh Zayed bin Sultan Al Nahyan of the UAE, played a crucial role in fostering the idea of closer cooperation among the Arab states of thePersian Gulf, laying the groundwork for the formation of the Gulf Cooperation Council. The members' shared vision for regional unity, security, and economic integration led to the official establishment of the GCC in 1981, strengthening the collective power and influence of the Gulf countries.[18]
The charter was signed in Arabic in Abu Dhabi, United Arab Emirates,[19] on 21 Rajab 1401 on theIslamic calendar (corresponding to 25 May 1981 on theGregorian calendar).
The signatory states on the founding document are the only current members of the GCC.
An economic agreement between the countries of the Gulf Cooperation Council was signed on 11 November 1981 in Abu Dhabi, UAE. These countries are often referred to as "the GCC states".[20]
Objectives
In 2001, the GCC Supreme Council set the following goals:
Oman announced in December 2006 that it would not be able to meet the 2010 target date for a common currency. Following the announcement that the central bank for the monetary union would be located in Riyadh, Saudi Arabia, rather than in theUAE, they announced their withdrawal from the monetary union project in May 2009. The nameKhaleeji has been proposed as a name for this currency. If realized, the GCC monetary union would be the second-largest supranational monetary union in the world, measured by the GDP of the common-currency area, following theEurozone.[22]
Other stated objectives include:
Formulating similar regulations in various fields such as religion, finance, trade, customs, tourism, legislation, and administration.
Fostering scientific and technical progress in industry, mining, agriculture, water, and animal resources.
The area has some of the fastest-growing economies in the world, mostly due to a boom inoil andnatural gas revenues coupled with a building and investment boom backed by decades of savedpetroleum revenues. In an effort to build a tax base and economic foundation before the reserves run out, the UAE's investment arms, including Abu Dhabi Investment Authority, retain over US$900 billion in assets. Other regional funds have several hundreds of billions of dollars of assets under management.[25]
Recovery plans have been criticized forcrowding out the private sector, failing to set clear priorities for growth, failing to restore weak consumer and investor confidence, and undermining long-term stability.[26]
Logo
The logo of the GCC consists of two concentric circles. On the upper part of the larger circle, the phraseBismillah - "in the name of God" - is written inArabic, and on the lower part of the circle is written the council's full name. The inner-circle contains an embossed hexagonal shape representing the six countries. The inside of the hexagon shows a map encompassing the Arabian Peninsula, on which the areas of the member countries are colored in brown, borderless.
Economy
Rail transport map of Saudi Arabia. TheGCC Railway, a proposed railway system to connect all six GCC member states, can be seen in yellow.
Internal market
Acommon market was launched on 1 January 2008, easing movement of goods and services, with plans to create a fully integratedsingle market.[27] Implementation later lagged behind, after the2008 financial crisis. The creation of a customs union began in 2003, and was completed and fully operational by 1 January 2015.[28] In January 2015, the common market was also further integrated, covering full equality among GCC citizens to work in government and private sectors, the ability to access social insurance and retirement coverage, real estate ownership rights, capital movement, and access to education, health and other social services, in all member states. However, some barriers remained in the free movement of goods and services.[29] The coordination of taxation systems, accounting standards and civil legislation is currently[when?] in progress. The interoperability of professional qualifications, insurance certificates and identity documents is also underway.[30]
Monetary union
In 2014, Bahrain, Kuwait, Qatar, and Saudi Arabia took major steps to ensure the creation of a single currency. Kuwait's finance minister said the four members are pushing ahead with the monetary union but said some "technical points" need to be cleared. He added, "A common market and common central bank would also position the GCC as one entity that would have great influence on the international financial system". The implementation of a single currency and the creation of a central bank is overseen by the Monetary Council.[31]
There is currently a degree to which a nominal GCC single currency already exists. Businesses trade using a basket of GCC currencies, just as before the Euro was introduced, theEuropean Currency Unit (ECU) had been used as a nominal medium of exchange.[30] Plans to introduce a single currency had been drawn up as far back as 2009, however due to the2008 financial crisis and political differences, the UAE and Oman withdrew their membership.[32]
Mergers and acquisitions
Companies and investors from GCC countries are active inmergers and acquisitions. Since 1999, more than 5,200 transactions with a known value of US$573 billion had been announced.[33] Investors include a number ofsovereign wealth funds.[34]
Infrastructure
The GCC launched common economic projects to promote and facilitate integration and to increase resilency. The GCC Interconnection Grid connects the power grids of member states. In 2009, it initiated operations and by 2013, all six members were connected.[35] A water interconnection project has been discussed but, as of January 2023, there have been no notable developments.[36] Unlike other leading aviation regions like theEuropean Union, members have not agreed to an open skies policy. As such, GCC airlines do not have unlimited market access rights to member states and compete to capture international air traffic flows.[37]
The GCC has also launched major rail projects to connect the peninsula. The railways are expected to fuel intra-regional trade while helping reduce fuel consumption. Over US$200 billion will be invested to develop about 40,000 kilometres (25,000 mi) of rail network across the GCC, according to Oman's Minister of Transport and Communications.[38] According to Ramiz Al Assar, Resident World Bank advisor for the GCC, it will link the six member states as a regional transport corridor, further integrating with the national railway projects, deepening economic social and political integration, and it is developed from a sustainable perspective.[38]
The project, estimated to be worth $15.5 billion, was scheduled to be completed by 2021. As of May 2022, railway construction UAE and Saudi Arabia have progressed significantly, but other members' efforts have lagged.[39]Saudi Arabian Railways,Etihad Rail, and their respective national governments have invested 15 billion dollars as of early 2015 into railway infrastructure to create rail networks for transporting freight, connecting cities, and reducing transport times.[38]
In the banking industry of the Gulf Cooperation Council (GCC), diversity is increasingly recognized as a strategic asset that goes beyond mere corporate social responsibility. This shift towards embracing a diverse workforce is driven by the recognition that varied perspectives and experiences spur innovation, improve decision-making, and expand market reach in the fast-paced world of finance, increasing market share and profitability.[40]
The GCC Supreme Council is composed of theheads of state of the member states.[50] It is the highest decision-making entity of the GCC, setting its vision and goals. Decisions on important issues require unanimous approval, while issues on procedural matters require a majority. Each member state has one vote.[51] The presidency rotates based on the Arabic alphabetical order of the names of the member states.[52]
Ministerial Council
The Ministerial Council is composed of the Foreign Ministers of all the member states. It convenes every three months. It formulates policies, and makes recommendations to promote cooperation and achieve coordination among the member states, when implementing ongoing projects. Decisions are submitted in the form of recommendations, which the Supreme Council can approve. The Ministerial Council is also responsible for preparations of meetings of the Supreme Council and its agenda. The voting procedure in the Ministerial Council is the same as in the Supreme Council.[51]
Secretariat General
The Secretariat is the executive arm of the Gulf Cooperation Council. It takes decisions within its authority, and implements decisions approved by the Supreme or Ministerial Council. The Secretariat also compiles studies relating to cooperation, coordination, and planning for common actions, and occasionally releases reports regarding the work done by the GCC as a whole, and the implementation of its own decisions. The current Secretary-General is Nayef Falah Mubarak Al Hajraf, and his deputies include Abdulaziz Al Auwaishig and Khalifa Alfadhel.[51]
Monetary Council
On 15 December 2009, Bahrain, Kuwait, Qatar, and Saudi Arabia announced the creation of a Monetary Council, to introduce asingle currency for the union. The board of the council, which set a timetable and action plan for establishing a central bank and chose acurrency regime, met for the first time on 30 March 2010. Kuwaitiforeign ministerMohammad Sabah Al-Sabah said on 8 December 2009 that a single currency may take up to ten years to establish. Oman and the UAE later announced their withdrawal from the proposed currency.[53]
In 2014, major moves were taken to ensure the launch of a single currency. Kuwait's finance minister stated that a currency should be implemented without delay. Negotiations with the UAE and Oman to expand the monetary union were renewed.[31]
The GCC Patent Office was approved in 1992, and established soon after in Riyadh, Saudi Arabia.[54] Applications are filed and prosecuted in theArabic language before it and grants patents valid in all GCC member states, but is a separate office from the Saudi Arabian Patent Office. The first GCC patent was granted in 2002. As of 2013, it employed about 30patent examiners.[citation needed]
Amidst theBahraini uprising, Saudi Arabia and the UAE sent ground troops to Bahrain in order to protect vital infrastructure such as the airport and highway system.[55][56][57][58] Kuwait and Oman refrained from sending troops.[55][59] Instead, Kuwait sent anavy unit.[60]
The secretary-general of the GCC strongly endorsed theuse of international force in Libya. GCC member states joined coalition efforts to enforce the no-fly zone.[61]
In September 2014, GCC members Saudi Arabia, Bahrain, UAE and Qatar, and pending member Jordan commenced air operations against theIslamic State of Iraq and the Levant (ISIL) in Syria.[62] Saudi Arabia and the UAE, however, are among the states that oppose theMuslim Brotherhood in Syria, whereas Qatar has historically supported it. They also pledged other support including operating training facilities for Syrian rebels, in Saudi Arabia,[63] and allowing the use of their airbases by other countries fighting ISIL. Some GCC countries also send some troops to fight the opposition government in Yemen.
The GCC Standardization Organization is the standardization organization of the GCC. Yemen is also a member of the GCC Standardization Organization.[64]
Gulf Organization for Industrial Consulting
TheGulf Organization for Industrial Consulting (GOIC) was founded in 1976 by the six GCC member states; Yemen joined the organization in 2009. It is headquartered at Doha, Qatar. The organization chart of GOIC includes the board members and the General Secretariat. The Board is formed by member state representatives appointed by their governments.[65]
The associate membership ofIraq in certain GCC-related institutions was cancelled after theinvasion of Kuwait.[73]
Yemen was in negotiations for GCC membership in 2007, and hoped to join by 2016.[74] Yemen is already a member of the GCC Standardization Authority, the Gulf Organization for Industrial Consulting (GOIC),[75] the GCC Auditing and Accounting Authority, the Gulf Radio and TV Authority, the GCC Council of Health Ministers, the GCC Education and Training Bureau, the GCC Council of Labour & and Social Affairs Ministers, and TheGulf Cup Football Tournament. The Council issued directives that all the necessary legal measures be taken, so that Yemen would have the same rights and obligations of GCC member states in those institutions.[76]
The union has served as a grouping for sports co-operation and competition. The GCC states have an annual meeting of the Youth and Sports Ministers of each state to boost youth and sports initiatives in the region.[77] The promotion of the hosting of international sports events has also served an economic purpose for the union's countries, leading to investment and development in the region.[78]
Qatar's support for the Muslim Brotherhood across the Middle East-North Africa (MENA) region,Hamas and radical Islamists in Libya, has led to increasing tensions with otherArab states of the Persian Gulf.[91][92][93] These tensions came to a head during a March 2014 meeting of the GCC, after which the UAE, Saudi Arabia and Bahrain recalled their ambassadors to Qatar.[94][95][96][97]
Somefinancial economists have interpreted the 2014 Saudi–Qatari rift as a tangible political sign of a growing economic rivalry between oil and natural gas producers, which could "have deep and long-lasting consequences" beyond MENA.[98]
2017 Qatar diplomatic crisis
On 5 June 2017, Bahrain, Saudi Arabia, the UAE, and Egypt had officially cut diplomatic ties with Qatar.[99] Saudi Arabia said it took the decision to cut diplomatic ties due to Qatar's "embrace of various terrorist and sectarian groups aimed at destabilising the region", including the Muslim Brotherhood,al-Qaeda, ISIL and Iran-supported groups in Saudi Arabia's eastern province ofQatif.[100] Political researcher Islam Hassan viewed this rift as a continuation of Qatar's foreign policy rivalry with Saudi Arabia and the UAE.[101][102][103]
In June 2017, Saudi Arabia, the United Arab Emirates, and Bahrain put a ban on Qataris and their businesses. Qataris were not allowed to enter or live in Saudi Arabia, the United Arab Emirates, or Bahrain, unless they had a spouse living there, in which case they were required to carry a visa in order to enter these countries.Qatar Airways aircraft were not allowed to fly over these countries. Saudi Arabia stated that they would turn its land border with Qatar into a canal, known as theSalwa Canal, in 2018. The plan was abandoned in 2019.[citation needed]
On 4 January 2021, Kuwait National TV announced that Saudi Arabia would restore all diplomatic ties with Qatar, reopen air space to Qatari aircraft and reopen the Qatar–Saudi land border.[citation needed]
Later that evening, it was announced that Bahrain, the United Arab Emirates and Egypt agreed to restore ties with Qatar. On 4 January 2021, it was made official at theAl-Ula summit, where the blockading countries, along with Qatar, signed an official agreement and ended the rift after three years and seven months.[citation needed]
GCC and US-GCC Summit meetings
US Secretary of StateAntony Blinken and foreign ministers of the GCC member states in Riyadh, Saudi Arabia, 19 April 2024
In January 2022, the GCC and Pakistan finalised the Joint Action Plan for Strategic Dialogue (2022–26).[105] In September 2023, the GCC and Pakistan signed a preliminary deal on a free trade agreement.[106][107][108]
GCC and EU Summit meetings
On 16 October 2024, the first GCC and the European Union summit was held in Brussels, Belgium. It was co-chaired byCharles Michel and the rotating GCC PresidentSheikh Tamim bin Hamad Al Thani, under the theme "Strategic Partnership for Peace and Prosperity".[109] TheHuman Rights Watch requested the EU to take advantage of the first summit with Gulf leaders, and challenge the involvement of the UAE and other neighbouring states in theSudan civil war. The EU director for HRW, Phillippe Dam said the union leaders should "publicly press" the UAE to stop arms supply to the RSF and push the militia to end the war.[110]
Related states
Euler diagram for the Arab League, which contains members of the Gulf Cooperation CouncilSaudi Crown PrinceMohammed bin Salman with the leaders ofEgypt,Iraq,Jordan, the GGC and the United States, at the GCC+3 summit inJeddah, Saudi Arabia, 16 July 2022
Since the creation of the council in 1981 its membership has not expanded, with all members being Arab monarchies.[111]
Some GCC countries have land borders with Iraq, Jordan or Yemen, and sea borders withIran,Pakistan,Egypt,Sudan, andEritrea.
Egypt
Only theSinai Peninsula of Egypt lies in theArabian Peninsula. In 2011, Bahrain's Foreign Minister called for Egypt to be admitted as a member of the GCC.[112]
Iraq
Iraq, despite having territory in the Arabian Peninsula and bordering the Persian Gulf, is the only Arab country bordering the gulf that is not a member of the GCC. Despite the societal, political differences between Iraq and its neighboring Gulf states, in 2012, former Iraqi Defence MinisterSaadoun al-Dulaimi stated that Iraq wanted to join the GCC.[11] Kuwait supported Iraq joining the GCC, however no progress has been made.[12]
Iran
At the December 2012 Manama summit, the GCC states called for an end to Iranian interference in their internal affairs.[113]
Jordan and Morocco
In May 2011, Jordan's request to join the GCC, which had been first submitted 15 years earlier, was accepted and Morocco was invited to join the union.[114][115] In September 2011, a five-year economic plan for both countries was put forward after a meeting between the foreign ministers of both countries and those of the GCC states. Although a plan for accession was being looked into, it was noted that there was no timetable for either's accession, and that discussions would continue.[111]
As Jordan and Morocco are the only two Arabic-speaking monarchies not currently in the council, the current members see them as strong potential allies. Jordan borders Saudi Arabia and is economically connected to the Arab Gulf States. Although Morocco is not near the Persian Gulf, the Moroccan foreign ministerTaieb Fassi Fihri notes that "geographical distance is no obstacle to a strong relationship".[111]
Yemen
Yemen was in negotiations for GCC membership, and hoped to join by 2016.[116] Although it has no coastline on thePersian Gulf, Yemen lies in the Arabian Peninsula.[10]
Related organizations
The GCC members and Yemen are also members of theGreater Arab Free Trade Area (GAFTA). However, this is unlikely to affect the agenda of the GCC significantly as it has a more aggressive timetable than GAFTA and is seeking greater integration.
^"U.A.E. Quits Gulf Monetary Union".Wall Street Journal. 21 May 2009. Retrieved8 July 2013.The move represents a rare public rift between members of the GCC, an economic and political union aimed at fostering better ties between the oil-rich Arab states straddling the Persian Gulf.
^"Population structure". Ministry of Development Planning and Statistics. 31 January 2020. Archived fromthe original on 26 June 2018. Retrieved24 April 2021.
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