Special Report: GCC - Power grid raises hopes of regional co-operation
The rulers of the six GCC member states will find little to cheer about when they meet for the council’s annual meeting in December, which this year is being hosted by Kuwait
Most of the GCC countries’ economies have struggled as the downturn has hit growth across the Gulf, and some major decisions have divided the member states rather than brought them closer together. In May, the UAE withdrew from the single currency project in protest at the decision to base the GCC Monetary Council in Riyadh.
Meanwhile, discussions over a free trade agree-ment with the GCC’s most important trading partner, the EU, have made no progress. However the growth of intra-GCC trade – one of the stated aims of the GCC – has been a success. Trade between member states has tripled since 2002 to more than $60bn.
The GCC General Secretariat has successfully implemented 40 common trade laws, and is working on a directive that would harmonise all other existing trade laws.
Other trade initiatives are also being worked on, including the creation of common GCC standards for all goods traded in the region.
These initiatives, if successfully implemented, should boost intra-GCC trade even more and could provide grounds for more optimistic annual meetings in the future.
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