The Gulf Cooperation Council (GCC) is a regional political and economic organisation comprising six member states: Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman. Established in 1981, the GCC provides a framework for political coordination, economic integration, and collective security among the Gulf monarchies.
Formation
The GCC was established on 25 May 1981, with its charter signed in Abu Dhabi. The organisation was created in the context of regional security concerns following the Iranian Revolution of 1979 and the outbreak of the Iran-Iraq War in 1980. While initially motivated by security considerations, the GCC has increasingly focused on economic integration and coordination.
Economic Integration
The GCC has pursued a phased approach to economic integration. A customs union was established in 2003, implementing a common external tariff on goods imported from outside the bloc. A common market was launched in 2008, allowing free movement of goods, services, capital, and labour among member states. Progress toward a monetary union and single currency has stalled, with member states unable to agree on implementation terms.
Secretariat
The GCC Secretariat is headquartered in Riyadh, Saudi Arabia. The organisation is led by a Secretary-General and governed by a Supreme Council comprising the heads of state of the six member countries.
Economic Significance
The six GCC member states collectively represent a GDP of approximately $2 trillion, control a significant share of global proven oil and natural gas reserves, and manage sovereign wealth funds with combined assets exceeding $4 trillion. The bloc is a major global energy supplier and a significant source of international investment capital.
Internal Dynamics
The GCC has experienced internal tensions, most notably the 2017-2021 diplomatic crisis in which Saudi Arabia, the UAE, Bahrain, and Egypt severed diplomatic and economic relations with Qatar. The crisis was resolved with the Al Ula Declaration in January 2021 but highlighted the limits of regional solidarity.
Role in Vision 2030
The GCC framework directly affects both Abu Dhabi and Bahrain’s Vision 2030 strategies. The common market facilitates trade, investment, and labour mobility between the two economies. GCC coordination on tax policy (VAT implementation), regulatory harmonisation, and infrastructure connectivity (the proposed GCC railway) shapes the environment in which both visions operate. The relative competitiveness of each economy within the GCC bloc determines its ability to attract capital, talent, and business activity.