Regional Financial Integration in the GCC
Regional Economic Integration
The GCC Region
Subject: TBS983 Submitted on: Dec 4th, 2013
Student Name: Mahmoud Al Juaidi
ID: 3756580
Table of Contents
Executive Summary
In this paper, the aim is to give a brief overview on regional economic integration around the Arabian Gulf, specifically the 1981 establishment of the Gulf Cooperation Council (GCC). This paper examines certain trends and recent developments since the establishment of the council, and looks at the outcomes of it.
The paper then moves on to examine the effectiveness of the creation of this trading bloc through conducting an analysis on four key areas to trade. These areas include the analysis of integration through Commodity Trade and Service Trade, financial and monetary integration, integration through infrastructure, and finally integration of the GCC along with other Arab countries and establishment of PAFTA.
Finally, some key issues and challenges relating to the integration efforts of GCC are discussed which bring light on some areas of improvement and are again emphasized somewhat in the conclusion.
This report does include tables, graphs, and charts some of which are from external sources and are included in this study as a means to emphasize key points in the analysis of the aforementioned areas.
Introduction
In many areas in the world, countries established agreements that permit free trade, free movement of capital, and labor between member states and nations seeking a mutual benefit. In the case of GCC (Gulf Cooperation Council), the purpose of establishing this regional integration was to improve commercial operations of those states, as well as finance operations, improve security, access larger markets, and compete on a global standard, in a world driven by globalization (Beidas-Strom S et al. (2010).
The GCC was founded in May, 1981 and is made up of six countries located in the Gulf; the UAE, Qatar, Kingdom of
The GCC Region
Subject: TBS983 Submitted on: Dec 4th, 2013
Student Name: Mahmoud Al Juaidi
ID: 3756580
Table of Contents
Executive Summary
In this paper, the aim is to give a brief overview on regional economic integration around the Arabian Gulf, specifically the 1981 establishment of the Gulf Cooperation Council (GCC). This paper examines certain trends and recent developments since the establishment of the council, and looks at the outcomes of it.
The paper then moves on to examine the effectiveness of the creation of this trading bloc through conducting an analysis on four key areas to trade. These areas include the analysis of integration through Commodity Trade and Service Trade, financial and monetary integration, integration through infrastructure, and finally integration of the GCC along with other Arab countries and establishment of PAFTA.
Finally, some key issues and challenges relating to the integration efforts of GCC are discussed which bring light on some areas of improvement and are again emphasized somewhat in the conclusion.
This report does include tables, graphs, and charts some of which are from external sources and are included in this study as a means to emphasize key points in the analysis of the aforementioned areas.
Introduction
In many areas in the world, countries established agreements that permit free trade, free movement of capital, and labor between member states and nations seeking a mutual benefit. In the case of GCC (Gulf Cooperation Council), the purpose of establishing this regional integration was to improve commercial operations of those states, as well as finance operations, improve security, access larger markets, and compete on a global standard, in a world driven by globalization (Beidas-Strom S et al. (2010).
The GCC was founded in May, 1981 and is made up of six countries located in the Gulf; the UAE, Qatar, Kingdom of
References: 1. Beidas-Strom S., Rasmussen T., & Robinson D. O.. (2010). Gulf Cooperation Council Countries Enhancing Economic Outcomes in an Uncertain Global Economy. Available: http://www.imf.org/external/pubs/ft/dp/2011/1101mcd.pdf. Last accessed 2nd Dec 2013. 2. Ernst & Young. 2012. Shifting Perspectives.Growing Beyond Limit Summit, Qatar http://www.ey.com/Publication/vwLUAssets/Shifting_perspectives_Middle_East_2012/$FILE/Shifting_perspectives_Middle_East_2012.pdf 3. Espinoza, R . (2010). Regional Financial Integration in the GCC.Available: http://www.imf.org/external/pubs/ft/wp/2010/wp1090.pdf. Last accessed 2nd Dec 2013. 4. mfti.gov.eg. (2008). Pan Arab Free Trade Area (PAFTA). Available: http://www.mfti.gov.eg/english/Agreements/Pafta.htm. Last accessed 3rd Dec 2013. 5. Middle East and North Africa Region, The World Bank 6. Shroff, R. (2013). UAE signs Open Skies agreement with Finland. Available: http://aviationbusinessme.com/aviation/2013/jul/24/337440/#.Up8BHsQW28A. Last accessed 2nd, Dec 2013. 7. World Bank. 2010. Economic Integration in the GCC. Office of the Chief Economist