Paper
The U.S.-Iran war has crossed a dangerous threshold: water infrastructure in the Gulf is now a target. Ecological statecraft is no longer peripheral to security, it's part of its foundations.
Olivia Lazard, Ali Bin Shahid
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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.
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
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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