Regional Arrangements in the Arabian Gulf

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  "authors": [
    "Uri Dadush",
    "Lauren Falcão"
  ],
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    "Carnegie Endowment for International Peace"
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  "primaryCenter": "Carnegie Endowment for International Peace",
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  "regions": [
    "Bahrain",
    "Kuwait",
    "Qatar",
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    "North America"
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  "topics": [
    "Political Reform",
    "Economy",
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Other

Regional Arrangements in the Arabian Gulf

The economic success of Gulf regional integration depends on increased cooperation within the service sector and improved administrative capacity in GCC countries.

By Uri Dadush and Lauren Falcão

Published on Aug 10, 2009

The Gulf Cooperation Council (GCC) represents one of the oldest and most ambitious regional trading agreements. Its member states—Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates—account for some 40 percent of world oil reserves.

The Gulf Cooperation Council's (GCC) ability to fulfill its role as driver of economic growth in the region would be enhanced by the following action points:

To facilitate greater trade in goods, the GCC must work to improve logistics and reduce non-tariff barriers to trade.
The remaining big gains to be had from Gulf regional integration are likely to stem not from trade in goods, but from increased integration of the service sector.
Measures for better integration of services are largely embedded in the 2001 Economic Agreement, but they must be better executed.
The weak administrative capacities of the GCC countries—as well as the political obstacles facing the GCC as an institution—add further complexity to an already extensive and ambitious agenda of economic reform. Improving administrative capacity is key.

About the Authors

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Lauren Falcão

Former Junior Fellow, Trade, Equity, and Development Program

Political Reform Economy Trade Bahrain Kuwait Qatar Saudi Arabia United Arab Emirates North America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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