Economical cooperation of GCC Member States

In their intentions to implement stated objectives, GCC have created broad infrastructure for economical co-operation. This approach was declared in Unified Economic Agreement ratified in 1981 and just from 1983 the goods manufactured by GCC Member States within Free Trade Zone are exempted from customs fees and various barriers. These conditions facilitated free motion of goods, people and capital.

To date there were ratified a lot of foundational documents such as Joint Agricultural Policy, Unified Industrial Development Strategy, the General Framework of the GCC Population Strategy, and the Long-Term Comprehensive Development Strategy 2000-2025 and many other. With respect to linking GCC infrastructures, the GCC Member States seek to accomplish the first phase of linking high voltage electricity grids. They also endeavour to complete the direct land route, the network of communications, and the Gulf network of Air Traffic Management.

GCC Member States coordinate their industrial activities by laying down proper policies and suggesting means that would lead to effect industrialization of the Member States on an integral basis. This is achieved by unifying their industrial regulations and legislations, and distributing industries all over the Member States by encouraging the establishment of basic projects according to the comparative economic advantages. In working out to fulfill this objective, the GCC Member States ratified the Unified Industrial Development Strategy aiming at the realization of an industrial development based on complementary bases, as well as increasing the contribution of the industrial sector in the gross national product. In an effort to support these objectives, the Unified Economic Agreement exempted all industrial products of GCC national origin from customs duties and other similar charges. The objectives are to coordinate policies at all stages of oil industry and to adopt a unified oil policy and position in the international markets. Moreover, measures are taken to avoid harmful competition, achieve maximum return, and secure the stability of these markets.

Cooperation in this field includes marine, land and air transportation and communication. GCC Member States also coordinate in setting up infrastructure projects, such as seaports, airports, and highways along with fostering those establishments that already exist in the GCC Member States. Joint work in this area also covers coordination of air navigation policies and air transport at various levels.

The GCC Member States also agreed to allow steamers, ships and boats and their cargos belonging to any Member State to freely use the various port facilities and grant them the same treatment and privileges granted to their own similar means. National carriers (national airlines) are also permitted to sell directly in the GCC Member States without the need for general agents or local sponsors.

Cooperation in education aims at achieving coordination and integration, as well as making the best use of available capacities and resources through laying down plans, designing policies, and adopting joint programmes and projects. To realise these ends, GCC Member States have worked to unify the objectives of education. The GCC Member States stress the importance of cooperation in the field of science and high technologies.

Economical stability inter alia is assured by unique law supported mutual assistance of GCC Member States. In 1987, the Supreme Council approved the Regulation of Oil Lending between the Member States. It aims at consolidating with any GCC Member State that may suffer from a break down of oil producing or transporting installations that prevent it from meeting its obligations towards other parties for a period exceeding one month, with the rate of damage reaching 30% of the quantity of oil planned to be exported by the concerned GCC Member State. In 1988, the Supreme Council also approved the Regional Emergency Plan of Petroleum Products, which aims at assisting any GCC Member State encountering shortage in petrochemicals.

For the aims of better industrial management GCC have established the Gulf Investment Corporation based in Kuwait, Standardization and Metrology Organization for GCC in Riyadh, Technical Telecommunication Bureau in Bahrain, Commercial Arbitration Centre for GCC in Bahrain, Regional Committee for Electrical Energy Systems registered in Qatar, and Electricity Grids Linking Commission based in Dammam, Saudi Arabia.