GCC Economy: Pillar of sustainable development and global competitiveness
Manama, Dec. 1 (BNA): Since the Gulf Cooperation Council was established in 1981, its member states have given top priority to economic cooperation, recognising the importance of unifying efforts and combining strengths to achieve sustainable development and shared prosperity. GCC leaders have worked to enhance this economic path and advance integration to meet the aspirations of their peoples and support security, stability and welfare.
From the early years of the GCC, member states understood the need to use all available resources and overcome obstacles to develop Gulf economies so they can contribute effectively to the global economy, face market challenges, and keep pace with rapid developments in this sector. They also recognised that a strong economy is as important as sound politics and diplomacy, and that cooperation is essential given the region’s natural resources, economic potential and strategic position.
Joint Gulf Projects Supporting Development
Joint Gulf economic projects began soon after the GCC was founded, moving into phased implementation through summit decisions and specialised ministerial committees. Member states have achieved clear progress in diversifying their economies, reducing reliance on oil, and investing in renewable energy, technology, tourism and logistics. They have also strengthened economic integration through the GCC common market, easing the movement of goods, capital and people.
To support financial integration, the GCC enabled citizens and companies from all member states to invest and trade freely in all GCC financial markets without discrimination, and worked to unify financial regulations, banking rules, ownership systems and investment laws.
Member states also facilitated the movement of capital and improved trade and investment flows by developing GCC Network (GCCNET), which links ATM and point-of-sale networks across the region.
As part of further integration, the Supreme Council approved the establishment of the GCC Customs Union in January 2003, applying a unified customs law and a single external tariff to ease trade in goods and encourage intra-GCC and global trade.
In the petroleum, mining and natural resources sectors, the 2001 Economic Agreement committed member states to adopt integrated policies across the oil, gas and minerals industries, ensuring optimal use of resources while protecting the environment and considering future generations, in line with the GCC’s long-term petroleum strategy.
For major infrastructure projects, including electricity interconnection to support shared economic growth, the GCC Interconnection Authority was established in 2001, followed by the 2009 general agreement on electricity linking. Several operational phases have since been completed, helping to support energy security, reduce costs and gradually increase the use of clean, non-oil renewable energy.
The GCC Unified Water Strategy was also completed to develop joint water laws, protect surface and groundwater resources, regulate desalination, promote the reuse of treated wastewater, and prepare a common emergency water plan.
Foreign Trade and Wider Global Prospects
The GCC adopted a careful and effective external economic policy based on member states’ development plans and global market conditions. This approach advanced the GCC’s international role, enabling it to compete with major global economic blocs and lead its region with stable and sustainable development strategies that became models referenced in global economic forums.
The adoption of a unified customs tariff allowed the GCC to join the Greater Arab Free Trade Area in 2005 and expand its partnerships with international organisations and major global actors such as the European Union, the United States, the Association of Southeast Asian Nations, the People’s Republic of China, the Russian Federation, the Islamic world and other economic blocs.
The future economic strategies of the GCC for the next decade aim to launch a new phase focused on integration and global competitiveness, guided by a shared vision and determined political will from the GCC leaders. Member states aim to implement further development projects that enhance the resilience of the Gulf economy and prepare it for future external challenges, while advancing security, prosperity and wellbeing for Gulf citizens.
