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MANAGEMENT THEORY AND PRACTICE

GULF COOPERATION COUNCIL

SUBMITTED TO:SIR M.SOHAIL GHANI

SUBMITTED BY:HASEEB SAJID

SP09-MBA-049

ADNAN YOUASSP09-MBA-013

DATED:02-04-2009

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TABEL OF CONTENTS

INTRODUCTION

HISTORY SECRETARIES-GENERAL INDICATORS (MEMBERS COUNTRIES) THE CHARTER THE ECONOMIC AGREEMENT SIGNATORY PARTY OBJECTIVES ECONOMY THE ORGANIZATIONAL STRUCTURE CLOSING STATEMENT OF THE SUPREEM COUNCIL SUMMARY REFERENCES

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GULF COOPERATION COUNCIL(GCC)

INTRODUCTION

Saudi Arabia was a prime mover in setting up the Gulf Cooperation Council in 1981. Other members are Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates (UAE).

The Gulf Cooperation Council aims to coordinate resistance to outside intervention in the Gulf.Progress towards economic integration has been slow during the 1980s economic downturn in theregion.

The Gulf Cooperation Council seeks to strengthen cooperation (in areas such as agriculture,industry, investment, security, and trade) among its six members: Bahrain, Kuwait, Quatar,Oman, Saudi Arabia, and the United Arab Emirates.

The Gulf Cooperation Council, created in response to the outreach of the Iran-Iraq war,established the Gulf Standards Organization in November 1982 and the Gulf InvestmentCorporation in 1984.

The presidency of the Gulf Cooperation Council rotates yearly among members. Councilheadquarters are in Riyadh, Saudi Arabia.

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MAP GCC COUNTRIES

Officiallanguages

Arabic

Type Trade bloc k

Membership Arab states of the Persian Gulf (6)

Secretary-General

Abdul Rahman bin Hamad al-Attiyah

Establishment May 25 , 1981

Population 40,338,196

GDP (nominal) Total $1,103,235 million

Per capita $22,083

Currency Common currency planned for introduction in 2010.Present currencies (ISO 4217 codes in brackets):Bahraini dinar (BHD) Kuwaiti dinar (KWD) Omani rial (OMR) Qatari riyal (QAR) Saudiriyal (SAR) UAE dirham (AED)

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http://en.wikipedia.org/wiki/Official_languagehttp://en.wikipedia.org/wiki/Official_languagehttp://en.wikipedia.org/wiki/Arabic_languagehttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/Arab_states_of_the_Persian_Gulfhttp://en.wikipedia.org/wiki/May_25http://en.wikipedia.org/wiki/1981http://en.wikipedia.org/wiki/Populationhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Bahraini_dinarhttp://en.wikipedia.org/wiki/Kuwaiti_dinarhttp://en.wikipedia.org/wiki/Omani_rialhttp://en.wikipedia.org/wiki/Qatari_riyalhttp://en.wikipedia.org/wiki/Saudi_riyalhttp://en.wikipedia.org/wiki/Saudi_riyalhttp://en.wikipedia.org/wiki/United_Arab_Emirates_dirhamhttp://en.wikipedia.org/wiki/Official_languagehttp://en.wikipedia.org/wiki/Official_languagehttp://en.wikipedia.org/wiki/Arabic_languagehttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/Arab_states_of_the_Persian_Gulfhttp://en.wikipedia.org/wiki/May_25http://en.wikipedia.org/wiki/1981http://en.wikipedia.org/wiki/Populationhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Bahraini_dinarhttp://en.wikipedia.org/wiki/Kuwaiti_dinarhttp://en.wikipedia.org/wiki/Omani_rialhttp://en.wikipedia.org/wiki/Qatari_riyalhttp://en.wikipedia.org/wiki/Saudi_riyalhttp://en.wikipedia.org/wiki/Saudi_riyalhttp://en.wikipedia.org/wiki/United_Arab_Emirates_dirham


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HISTORY

Created on May 25 , 1981 , the 630-million-acre (2,500,000 km2) C comprises the Persian Gulf states of Bahrain , Kuwait , Oman , Qatar , Saudi Arabia and the United Arab Emirates . The unifiedeconomic agreement between the countries of the Gulf Cooperation Council was signed on

November 11 , 1981 in Riyadh . These countries are often referred to as Gulf CooperativeCountries.

Not all of the countries neighboring the Persian Gulf are members of the council. Iran and Iraqare currently excluded although both nations have a coastline on the Persian Gulf . Themembership of Iraq in certain GCC institutions was discontinued after the invasion of Kuwait.The GCC States have announced that the support the Document of the International Compactwith Iraq that was adopted at Sharm El-Sheikh on 4-5 May 2007. It calls for regional economicintegration with the neighboring states and accession of Iraq to the GCC.Yemen is (currently [update] ) in negotiations for GCC membership, and hopes to join by 2016.The GCC has already approved Yemen's accession to the GCC Standardization Authority, Gulf Organization for Industrial Consultancy, GCC Auditing and Accounting Authority, Gulf Radioand TV Authority, The GCC Council of Health Ministers, The GCC Education and TrainingBureau, The GCC Council of Labor & and Social Affairs Ministers, and The Gulf Cup FootballTournament. The Council issued directives that all the necessary legal measures be taken so thatYemen would have the same rights and obligations of GCC member states in those institutions.The GCC Patent Office was approved in 1992 and established soon after.A GCC common market was launched on January 1, 2008. The common market grants nationaltreatment to all GCC firms and citizens in any other GCC country, and in doing so removes all

barriers to cross country investment and services trade.The GCC members and Yemen are also members of the Greater Arab Free Trade Area (GAFTA).However, this is unlikely to significantly affect the agenda of the GCC as it has a more aggressivetimetable than GAFTA and is seeking greater integration.

Secretaries-General

Abdullah Bishara [4] , Kuwait, 26 May 1981 April 1993 Fahim bin Sultan al-Qasimi , United Arab Emirates, April 1993 April 1996 Jamil bin Ibrahim al-Hujailan , Saudi Arabia, April 1996 31 March 2002 Abdul Rahman bin Hamad al-Attiyah , Qatar, 1 April 2002 to date

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INDICATORS

Name Capital Population Area(km)GDP (mil.

US$)Per capita

(US$) Currency

Bahrain Manama 1,046,814 716 15,354 23,604 BahrainDinar Qatar Doha 1,307,229 11,437 52,722 80,870 Qatari Riyal

Kuwait Kuwait

City2,460,000 17,818 95,924 39,300 Kuwaiti

Dinar Oman Muscat 2,534,000 309,500 35,990 19,879 Omani RiyalSaudi Arabia Riyadh 26,417,599 2,240,000 572,200 21,200 Saudi RiyalUnited Arab

EmiratesAbuDhabi 4,588,697 83,600 163,296 55,200

UAEDirham

THE CHARTER

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The Cooperation Council - CharterThe Supreme Council - Rules of ProcedureThe Ministerial Council - Rules of ProcedureThe Commission for the Settlement of Disputes - Rules of Procedure

THE ARAB STATES OF THE GULF

The United Arab EmiratesThe State of BahrainThe Kingdom of Saudi ArabiaThe Sultanate of OmanThe State of Qatar, andThe State of Kuwait

Being fully aware of the ties of special relations, common characteristics and similar systemsfounded on the creed of Islam which bind them; and Desiring to effect coordination, cooperationand integration between them in all fields; and, Having the conviction that coordination,cooperation, and integration between them serve the sublime objectives of the Arab Nation; and,

Having the conviction that coordination, cooperation, and integration between them serve thesublime objectives of the Arab Nation; and, In pursuit of the goal of strengthening cooperationand reinforcement of the links between them; and, In order to channel their efforts to reinforceand serve Arab and Islamic causes,Have agreed as follows :

ARTICLE ONE:

The Establishment of the Council:A Council shall be established hereby to be named The Cooperation Council for the Arab Statesof the Gulf hereinafter referred to as the Cooperation Council (GCC).

ARTICLE TWO:

The Cooperation Council shall have its headquarters in Riyadh, Saudi Arabia.

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ARTICLE THREE

Cooperation Council Meetings:The Council shall hold its meetings in the state where it has its headquarters, and may convene inany member state.

ARTICLE FOUR

Objectives

The basic objectives of the Cooperation Council are:

To effect coordination, integration and inter-connection between Member States in all fields inorder to achieve unity between them.

To deepen and strengthen relations, links and areas of cooperation now prevailing between their peoples in various fields.

To formulate similar regulations in various fields including the following:Economic and financial affairs Commerce, customs and communications Education and culture.

To stimulate scientific and technological progress in the fields of industry, mining, agriculture,water and animal resources; to establish scientific research; to establish joint ventures andencourage cooperation by the private sector for the good of their peoples

ARTICLE FIVE

Council Membership

The Cooperation Council shall be formed of the six states that participated in the ForeignMinisters' meeting held in Riyadh on 4 February 1981.

ARTICLE SIX

Organization of the Cooperation Council

The Cooperation Council shall have the following main organizations:

The Supreme Council to which shall be attached the Commission for Settlement of Disputes.

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The Ministerial Council.

The Secretariat General.

Each of these organizations may establish sub-agencies as may be necessary.

ARTICLE SEVEN

Supreme Council


The Supreme Council is the highest authority of the Cooperation Council and shall be formed of heads of member states. Its presidency shall be rotatory based on the alphabetical order of thenames of the member states.

The Supreme Council shall hold one regular session every year. Extraordinary sessions may beconvened at the request of any member seconded by another member.

The Supreme Council shall hold its sessions in the territories of member states.

A Supreme Council's meeting shall be considered valid if attend by two-thirds of the member states.

ARTICLE EIGHT

The Functions of the Supreme Council

The Supreme Council shall endeavor to realize the objectives of the Cooperation Council, particularly as concerns the following :

Review matters of interest to the member states.

Lay down the higher policy for the Cooperation Council and the basic lines it should follow.

Review the recommendations, reports, studies and joint ventures submitted by the MinisterialCouncil for approval.

Review reports and studies, which the Secretary-General is charged to prepare.

Approve the bases for dealing with other states and international organizations.

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Approve the rules of procedure of the Commission for the Settlement of Disputes and nominateits members.

ARTICLE NINE

Voting in the Supreme Council


Each member of the Supreme Council shall have one vote.

Resolutions of the Supreme Council in substantive matters shall be carried by unanimousapproval of the member states participating in the voting, while resolutions on proceduralmatters shall be carried by majority vote.

ARTICLE TEN

Commission for the Settlement of Disputes

The Cooperation Council shall have a commission called "The Commission for the Settlementof Disputes" which shall be attached to the Supreme Council.

The Supreme Council shall establish the composition of the Commission for every case on an"ad hoc" basis in accordance with the nature of the dispute.

If a dispute arises over interpretation or implementation of the Charter and such dispute is notresolved within the Ministerial Council or the Supreme Council, the Supreme Council mayrefer such dispute to the Commission for the Settlement of Disputes.

The Commission shall submit its recommendations or opinion, as applicable to the, SupremeCouncil for such action as the Supreme Council deems appropriate.

ARTICLE ELEVEN

Ministerial Council

The Ministerial Council shall be formed of the Foreign Ministers of the member states or other

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delegated ministers. The Council Presidency shall be for the member state, which presided thelast ordinary session of the Supreme Council, or if necessary, for the state which is next to

preside the Supreme Council.

The Ministerial Council shall convene every three months and may hold extraordinary sessionsat the invitation of any member seconded by another member.

The Ministerial Council shall determine the venue of its next session.

A Council's meeting shall be deemed valid if attended by two-thirds of the member states.

ARTICLE TWELVE

Functions of the Ministerial Council

Propose policies, prepare recommendations, studies and projects aimed at developingcooperation and coordination between member states in various fields and adopt the resolutionsor recommendations required in this regard.

Endeavour to encourage, develop and coordinate activities existing between member states inall fields. Resolutions adopted in such matters shall be referred to the Ministerial Council for further submission, with recommendations to the Supreme Council for appropriate action.

Submit recommendations to the Ministers concerned to formulate policies whereby theCooperation Council's resolutions may be put into effect.

Encourage means of cooperation and coordination between the various private sector activities,develop existing cooperation between the member states' Chamber of Commerce and Industry,and encourage the movement within the GCC of workers who are citizens of the member states.

Refer any of the various aspects of cooperation to one or more technical or specialisedcommittee for study and presentation of appropriate recommendations.

Review proposals related to amendments to this Charter and submit appropriaterecommendations to the Supreme Council.

Approve Rules of Procedure of both the Ministerial Council and the Secretariat General.

Appoint the Assistant Secretaries-General, as nominated by the Secretary-General, for a period

of three year, renewable.

Approve periodic reports as well as internal rules and regulations relating to administrative andfinancial affairs proposed by the Secretary-General, and submit recommendations to theSupreme Council for approval of the budget of the Secretariat General.

Make arrangements for meetings of the Supreme Council and prepare its agenda.

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Review matters referred to it by the Supreme Council.

ARTICLE THIRTEEN

Voting in the Ministerial Council

Every member of the Ministerial Council shall have one vote.

Resolutions of the Ministerial Council in substantive matters shall be carried by unanimousvote of the member state present and participating in the vote, and in procedural matters bymajority vote.

ARTICLE FOURTEEN

The Secretariat General

The Secretariat General shall be composed of a Secretary-General who shall be assisted byassistants and a number of staff as required.

The Supreme Council shall appoint the Secretary-General, who shall be a citizen of one of theCooperation Council states, for a period of three years, which may be renewed once only.

The Secretary-General shall nominate the Assistant Secretaries-General.

The Secretary-General shall appoint the Secretariat General staff from among the citizens of member states, and may not make exceptions without the approval of the Ministerial Council.

The Secretary-General shall be directly responsible for the work of the Secretariat General andthe smooth flow of work in its various organizations. He shall represent the CooperationCouncil with other parties within the limits of the authority vested in him.

ARTICLE FIFTEEN

Functions of the Secretariat GeneralThe Secretariat General shall:

Prepare studies related to cooperation and coordination, and to integrated plans and programmes for member states' action.

Prepare periodic reports on the work of the Cooperation Council.

Follow up the implementation by the member states of the resolutions and recommendations of the Supreme Council and Ministerial Council.

Prepare reports and studies requested by the Supreme Council or Ministerial Council.

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Prepare the draft of administrative and financial regulations commensurate with the growth of the Cooperation Council and its expanding responsibilities.

Prepare the budgets and closing accounts of the Cooperation Council.

Make preparations for meetings and prepare agendas and draft resolutions for the MinisterialCouncil.

Recommend to the Chairman of the Ministerial Council the convening of an extraordinarysession of the Council when necessary.

Any other tasks entrusted to it by the Supreme Council or Ministerial Council.

ARTICLE SIXTEEN

The Secretary-General and the Assistant Secretaries-General and all the Secretariat Generalstaff shall carry out their duties in complete independence and for the joint benefit of themember states.

They shall refrain from any action or behavior that is incompatible with their duties and fromdivulging confidential matters relating to their appointments either during or after their tenureof office.

ARTICLE SEVENTEEN

Privileges and Immunities

The Cooperation Council and its organizations shall enjoy on the territories of all member states such legal competence, privileges and immunities as are required to realize their objectives and carry out their functions.

Representatives of the members on the Council, and the Council's employees, shall enjoy such privileges and immunities as are specified in agreements to be concluded for this purpose between the member states. A special agreement shall organize the relation between theCouncil and the state in which it has its headquarters.

Until such time as the two agreements mentioned in item 2 above are prepared and put intoeffect, the representatives of the member states in the Cooperation Council and its staff shallenjoy the diplomatic privileges and immunities established for similar organizations.ARTICLE EIGHTEEN

Budget of the Secretariat General

The Secretariat General shall have a budget to which the member states shall contribute in

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equal amounts .

ARTICLE NINETEEN

The Implementation of the Charter

This Charter shall go into effect as of the date it is signed by the Head of States of the sixmember states named in this Charter's preamble.

The original copy of this Charter shall be deposited with the Ministry of Foreign Affairs of theKingdom of Saudi Arabia which shall act as custodian and shall deliver a true copy thereof toevery member state, pending the establishment of the Secretariat General, at which time thelatter shall become depository.

ARTICLE TWENTY

Amendments to the CharterAny member state may request an amendment of this Charter.

Request for Charter amendments shall be submitted to the Secretary-General who shall refer them to the member states at least four months prior to submission to the Ministerial Council.

An amendment shall become effective if unanimously approved by the Supreme Council.

ARTICLE TWENTY ONE

Closing Provisions

No reservations may be voiced in respect of the provisions of this Charter.

ARTICLE TWENTYTWO

The Secretariat General shall arrange to deposit and register copies of this Charter with theLeague of Arab States and the United Nations, by resolution of the Ministerial Council.

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This Charter is signed on one copy in the Arabic language at Abu Dhabi City, United ArabEmirates, on 21 Rajab 1401 corresponding to 25 May 1981.

The United Arab Emirates

The State of BahrainThe Kingdom of Saudi ArabiaThe Sultanate of OmanThe State of Qatar The State of Kuwait

The Economic AgreementBetween the GCC States

Adopted by the GCC Supreme Council

(22nd Session; 31 December 2001)

in the City of Muscat, Sultanate of Oman

Introduction

This publication the contains the text of the Economic Agreement Between the Gulf Cooperation Council States (the Economic Agreement) signed by their Majesties andHighnesses GCC leaders, on December 31, 2001 (Shawwal 16, 1422 AH) during the 22ndSession of the Supreme Council in Muscat, Sultanate of Oman.

The new agreement represents a new style of GCC joint work as it does not only call for cooperation and coordination among Member States, but goes beyond that to expressly providefor the economic integration among Member States through the adoption of specific programsand workable mechanisms. The GCC working committees and the Secretariat General willfollow up the implementation of the agreement according to specific timetables. Chapter VIIIcontains mechanisms for implementation and follow-up, as well as settlement of disputes thatmight arise during implementation of the treaty. January 2002

The Secretariat General Economic Affairs Division

Chapter I

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Trade

Article One: The Customs Union

Trade between the GCC member States will be conducted within the framework of a customs

union that will be implemented no later than the first of January 2003. It shall include, at aminimum, the following:

1. A common external customs tariff (CET).2. Common customs regulations and procedures.3. Single entry point where customs duties are collected.

Article Two: International Economic Relations

Member States shall take the necessary measures to achieve this objective, including thefollowing :

1. Negotiate collectively in a manner that serves the negotiating position of the Member States.

2. Collectively conclude economic agreements with trading partners.3. Unify import and export rules and procedures.4. Unify commercial exchange policies with the outside world

Chapter II

GCC Common Market

Article Three

GCC natural and legal citizens shall be accorded, in any Member State, the same treatmentaccorded to its own citizens, without differentiation or discrimination, in all economic activities,especially the following:

1. Movement and residence2. Work in private and government jobs3. Pension and social security.4. Engagement in all professions and crafts5. Engagement in all economic, investment and service activities6. Real estate ownership7. Capital movement8. Tax treatment

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9. Stock ownership and formation of corporations10. Education, health and social services

Member States shall agree to complete implementation rules sufficient to carry this out and bring into being the Gulf Common Market.

Chapter III

Economic and Monetary Union

Article Four: Monetary and Economic Union Requirements

For the purpose of achieving a monetary and economic union between Member States,including currency unification, Member States shall undertake, according to a specified timetable,

to achieve the requirements of this union. These include the achievement of a high level of harmonization between Member States in all economic policies, especially fiscal and monetary policies, banking legislation, setting criteria to approximate rates of economic performancerelated to fiscal and monetary stability, such as rates of budgetary deficit, indebtedness, and pricelevels.

Article Five: Investment Climate

For the purpose of enhancing local, external, and intra-GCC investment levels, and provide aninvestment climate characterized by transparency and stability, Member States agree to take thefollowing steps:

1. Unify all their investment-related laws and regulations.2. Accord national treatment to all investments owned by GCC natural and legal citizens.3. Integrate financial markets in Member States, and unify all related legislation and

policies.4. Adopt unified standards and specifications for all products, according to the Charter of

the GCC Standardization and Metrology Organization.

Article Six: Regional and International AidMember States shall coordinate their external policies related to international and regional

development aid .

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Chapter IV

Development Integration

Article Seven: Comprehensive Development

Member States shall adopt the policies necessary to achieve an integrated development process in all fields in all GCC states and deepen coordination between all activities contained intheir national development plans. These policies shall include the implementation of the Long-term Comprehensive Development Strategy of the GCC Member States.

Article Eight: Industrial Development

1. Member States shall adopt the policies necessary to enhance the participation of theindustrial sector in the economy, coordination of industrial activity on a GCC-wideintegrated basis, including the implementation of the Unified Strategy of IndustrialDevelopment for the GCC Member States.

2. Member States shall unify their industrial legislation and regulations, including rulesrelated to industry promotion, anti-dumping, and precautionary safeguards.

Article Nine: Oil, Gas, and Natural Resources

For the purpose of achieving integration between Member States in the fields of petroleumand minerals industries, and other natural resources, and enhancing competitive position of Member States,

1. Member States shall adopt integrated policies in all phases of oil, gas, and mineralsindustries to achieve optimal exploitation of natural resources, while taking into accountenvironmental considerations and the interests of future generations.

2. Member States shall adopt unified policies for oil and gas, and take common positions inthis regard towards non-member states and at international and specialized organizations.

3. Member States and oil and gas companies working within them shall cooperate insupporting and developing research in the fields of oil, gas, and natural resources, andenhance cooperation with universities in these fields.

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Article Ten: Agricultural Development

Member States shall adopt the policies necessary to achieve agricultural integration betweenthem, and long-tem optimal utilization of available resources, especially water, including theimplementation of the Common Agricultural Policy of the GCC Member States and related GCClegislation.

Article Eleven: Environmental Protection

Member States shall adopt the policies and mechanisms necessary to protect theenvironment according to all relevant legislation and resolutions adopted within the GCCframework, as representing the minimum level for national rules and legislation .

Article Twelve: Joint Projects

For the purpose of enhancing ties between Member States in the productive sectors, utilizingeconomies of scale, achieving economic integration, and improving the distribution of integration

benefits among them, Member States shall undertake the measures necessary to support, finance,and form joint projects, both private and public, including the following:

1. Adopt integrated economic policies between the Member States for infrastructure projects and basic services such as transport; communications; electricity; information

technology; health, education, and tourism projects; and oil and gas industry.2. Establish joint projects based on comparative advantages of Member States.3. Provide additional incentives for the private sector to form joint projects that interlink the

economic interests of GCC citizens.4. Eliminate all procedural obstacles encountering joint projects and according them, at a

minimum, the same treatment given to similar national projects.

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Chapter Five

Development of Human Resources

Article Thirteen: Population Strategy

Member States shall implement the General Framework of Population Strategy of the GCCStates, adopt the policies necessary for the development of human resources and their optimalutilization, provision of health care and social services, enhancement of the role of women indevelopment, and the achievement of balance in the demographic structure and labor force toensure social harmony in Member States, emphasize their Arab and Islamic identity, and maintaintheir stability and solidarity.

Article Fourteen: Compulsory Basic Education and Eradication of Illiteracy

1. Member States shall adopt the programs required for the total eradication of illiteracy inall GCC states according to a specific timetable, and enact necessary legislation to thiseffect.

2. Member States shall adopt a timetable for the implementation of compulsory basiceducation and enact necessary legislation to this effect.

Article fifteen: Education

1. Member States shall cooperate to develop programs and curricula of public, higher, andtechnical education, to ensure high levels of scientific content and compatibility with thedevelopment needs of Member States.

2. Member States shall undertake to achieve integration between GCC universities in allfields.

3. Member States shall adopt appropriate policies and mechanisms to ensure compatibility between the outputs of higher education and scientific and technical research on the onehand, and the needs of the labor market and economic development, on the other.

Article Sixteen: Manpower Nationalization

1. Member States shall undertake the policies necessary to develop and unify their labor rules and legislation, eliminate all obstacles restricting intra-GCC movement of nationallabor force. GCC citizens working in a member State other than their countries of citizenship shall be included within the percentages set for manpower nationalization.

2. Member States shall adopt unified criteria for job description and classification for all professions and trades in all sectors, and undertake to develop and exchange allinformation related to their labor markets, including unemployment rates, jobopportunities and training programs.

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Article Seventeen: Increasing Labor Participation Rates and Training of Nationals

1. Member States shall adopt effective policies to increase participation rates of nationals in the labor market, especially in high-skill jobs, and adopt effective programs to raise the skill levels of national labor force, develop on-the-job training programs, participate in financing such programs, and provide incentives for jobseekers in the private sector. Aid granted to the private sector shall be linked with theadoption of programs intended for the employment and training of nationalmanpower.

2. Member States shall adopt the policies necessary for rationalizing the employment of foreign workers.

Chapter VI

Scientific and Technical Research

Article Eighteen: Scientific and Technical Research

Member States shall adopt, as basic priorities for development, policies to support jointscientific and technical research, and develop their own joint scientific, technical, and informationtechnology databases, including the adoption of the following policies:

1. Increase the funds allocated to scientific and technical research.2. Encourage and provide the necessary incentives to the private sector to contribute to the

funding of specialized scientific and technical research,3. Ensure that international companies operating in the GCC States sponsor specialized

programs for scientific and technical research in the Member States.4. Establish a native scientific, technical, and information technology base that fully utilizes

the expertise of international and regional organizations.5. Integrate scientific research institutions in the GCC States in order to develop and

activate the scientific, technical, and information technology base referred to in thisarticle and work jointly to set up common research centers.

Article Nineteen: Utilization of the Scientific, Technical, and InformationTechnology Base

For the purposes of developing and fully utilizing their scientific, technical, and informationtechnology base, Member States shall take the following measures, as a minimum:

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1. Develop mechanisms for achieving optimal utilization of scientific and technical research in both public and private sectors, and continued coordination between the executive bodies onthe one hand and the outputs of the scientific, technical, and information technology base, onthe other.

2. Make the outputs of the scientific, technical, and information technology base available tospecialists, researchers, businessmen, and investors through simplified procedures.

3. Support and develop technical information networks, systems and centers in member states,and adopt programs to facilitate information dissemination and exchange among theinstitutions of scientific and technical research in the GCC States.

Article Twenty: Intellectual Property

Member States shall develop programs encouraging talented individuals and supporting

innovation and invention; cooperate in the field of intellectual property and develop regulationsand procedures ensuring protection of intellectual property rights; and coordinate their relevant policies towards other countries, regional blocs and international and regional organizations.

Chapter VII

Transportation, Communication, and Infrastructure

Article Twenty-one: Means of Transportation

Member States shall accord all means of passenger and cargo transportation belonging to anyMember State, while transiting or entering their territories, the same treatment accorded to their national means of transportation, including the level of duties, taxes and facilities.

Article Twenty-two: Marine Transportation Services

Member States shall accord marine means of transportation belonging to any Member Stateand cargoes thereof the same preferential treatment they grant to their national counterparts in the

use of their facilities, whether during docking or while calling at their ports, including fees andtaxes, as well as services of pilotage, docking, freight, loading, unloading, maintenance, repair and storage.

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Article Twenty-three: Infrastructure Integration

1. Member States shall adopt international policies for the establishment of the infrastructure projects such as seaports, airports, desalination plants, electric power stations, and roads.These policies should aim to facilitate trade exchange between member states, realize commoneconomic development, and interlink their economic activities.

2. Member States shall take the necessary measures to ensure integration of their aviation and air transport policies.

3. Member States shall develop and integrate the various means of land and marine transportationin order to facilitate the movement of citizens and goods and achieve economies of scale.

Article Twenty-four: Communications

Member States shall take all the necessary measures to ensure the integration of their communication policies, including telecommunication, post and data network services, whichwould lead to improving their service levels and economic efficiency and to strengthening the ties

between GCC citizens as well as private and public institutions.

Article Twenty-five: Electronic Commerce

Member States shall take all necessary actions to facilitate banking and trade exchangethrough electronic means of communication, and unify their electronic commerce legislation.

Chapter VIII

Mechanisms for Implementation and Follow-up

Article Twenty-six: Implementation of the Agreement

1. Committees working under the framework of the GCC shall implement this Agreement, eachwithin its competence.

2. The Secretariat General shall follow up implementation of the Agreement.

3. Member States shall provide the Secretariat General with periodic reports regardingimplementation of the provisions of this Agreement and the applicable resolutions taken toimplement those provisions. In the light of these reports, the Secretary General shall submit acomprehensive periodic report to the Supreme Council. The Secretariat General shall set a

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mechanism for the preparation of these reports, their contents, and the completion datesthereof.

Article Twenty-seven: Settlement of Disputes

1. The Secretariat General shall hear and seek to amicably settle any claims brought by any GCCcitizen or official entity, regarding non-implementation of the provisions of this Agreement or enabled resolutions taken to implement those provisions.

2. If the Secretariat General could not settle a claim amicably, it shall be referred, with theconsent of the two parties, to the GCC Commercial Arbitration Center to hear the disputeaccording to its Charter. Should the two parties not agree to refer the dispute to arbitration, or should the dispute be beyond the competence of the Center, it shall be referred to the judicial

body set forth in Paragraph 3 of this Article.

3. A specialized judicial commission shall be formed, when deemed necessary, to adjudicatedisputes arising from the implementation of this Agreement or resolutions for itsimplementation. The Financial and Economic Committee shall propose the charter of thiscommission.

4. Until the charter of the commission referred to in paragraph (3) above comes into force, alldisputes which the two parties do not agree to settle through arbitaration and which could not

be amicably settled by the Secretariat General, shall be referred to the competent GCCcommittees for settlement.

Chapter IX

Final Provisions

Article Twenty-eight: Ratification and publication

Member States shall take all measures necessary to ratify this Agreement and the relevantresolutions for its implementation, publish them in the official notification media, and implementthem according to their provisions.

Article Twenty-nine: Coming into force

This Agreement shall come into force after being ratified by all Member States. TheSecretariat General shall notify member States of the date of its coming into force.

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Article Thirty: Exclusion

A Member State may be granted a temporary exclusion from implementing certain provisionsof this Agreement as may be necessary due to temporary local situations prevailing in that Stateor specific circumstances encountered. Such exclusion shall be for only a limited period andshall be authorized only by a resolution from the Supreme Council.

Article Thirty-one: External bilateral agreements

No Member State may grant to a non-Member State any preferential treatment exceeding thatgranted herein to Member States, nor conclude any agreement that violates provisions of thisagreement.

Article Thirty-two: Precedence of the provisions of the Agreement

1. The provisions of this Agreement shall have prevail if found in disagreement with locallaws and regulations of the Member States.

2. This Agreement shall supersede the GCC Economic Agreement signed in 1981 AD (1402AH), and the provisions contained herein shall supersede equivalent provisions set forthin bilateral agreements (between member states).

3. Until the GCC Customs Union is established, the provisions of Article 3 of the GCCEconomic Agreement signed in 1981 AD (1402 AH) shall continue to be applied. The

percentage of the added value provided for in said Article may be amended by a decisionof the Financial and Economic Committee.

Article Thirty-three: Amendment and Interpretation

1. This Agreement may not be amended without approval of the Supreme Council.

2. The Financial and Economic Committee shall be authorized to interpret this Agreement .

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SIGNATORY PARTY

Shaikh Zayed ibn Sultan Al Nahayyan

President, United Arab Emirates

Shaikh Maktoum ibn Rashed Al Maktoum

Vice President, United Arab Emirates

Prime Minister, Governor of Dubai

Shaikh Hamad ibn Issa Al Khalifah

Emir of the State of Bahrain

King Fahd ibn Abdel-Aziz Al Saud

King of Saudi Arabia

Prince Abdallah ibn Abdelaziz Al Saud

Crown Prince, Deputy Prime Minister, and Commander of the National Guard, Kingdom of Saudi Arabia

Sultan Qaboos ibn Saeed

Sultan of Oman

Shaikh Hamad ibn Khalifah Al Thani

Emir of the State of Qatar

Shaikh Jaber Al Ahmad Al Jaber Al Sabah

Emir of the State of Kuwait

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Shaikh Sabah Al Ahmad Al Jaber Al Sabah

Deputy Premier and Minister of Foreign Affairs

Objectives

Among the stated objectives are:

formulating similar regulations in various fields such as economy, finance, trade,customs, tourism, legislation, and administration;

fostering scientific and technical progress in industry, mining, agriculture, water andanimal resources;

establishing scientific research centers; setting up joint ventures; encouraging cooperation of the private sector; strengthening ties between their peoples; and Establishing a common currency, the Khaleeji, by 2010. (However, Oman had announced

it will not be able to meet the target date.)

Economy

For main article see Economy of the Cooperation Council for the Arab States of the Gulf

This area has some of the fastest growing economies in the world, mostly due to a boom in oil and natural gas revenues coupled with a building and investment boom backed by decades of saved petroleum revenues. In an effort to build a tax base and economic foundation before thereserves run out, the UAE's investment arms, including Abu Dhabi Investment Authority, retainover $900 billion in assets. Other regional funds also have several hundred billion dollars.

The region is also an emerging hotspot for events, including the 2006 Asian Games in Doha ,Qatar . Doha also submitted an application for the 2016 Summer Olympic Games , although this

bid was unsuccessful having recently been dropped from the list of candidate cities.

In 2006, its GDP (nominal) was $717.8 billion (IMF April 2007), led by spectacular growth inUnited Arab Emirates and Qatar . [9]. In 2007, its GDP (nominal) was $1,022.62 billion (IMFApril 2008). IMF predicts its GDP to reach $1,112.076 billion at end of 2008 and $1,210.112

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billion at end of 2009. Qatar is expected to overtake top ranked Luxembourg in GDP (nominal) per capita next year for the world's top spot. See List of countries by GDP (nominal) per capita .

The Organizational StructureFirstly: The Supreme Council is the highest authority of the GCC formed of the Heads of Member States. Its presidency rotates according to the Arabic alphabetical order of the names of Member States. It convenes one regular session every year. However, extraordinary sessions may

be convened at the request of any Member State seconded by another. In 1998, during the 19thsummit held in Abu Dhabi, the Supreme Council decided to hold a consultative meeting in

between two summits every year. Meetings of the Supreme Council are considered valid if attended by two-thirds of the Member States, at which each has one vote. Resolutions onsubstantive matters are issued by unanimous approval of the members present, while a majority is

enough to approve those of procedural nature.

Secondly: The Ministerial Council is composed of the Ministers of Foreign Affairs or other ministers acting on their behalf. Presidency of the Ministerial Council is entrusted with theMember State that presided the last ordinary session of the Supreme Council, or when necessary,with the Member State that is next to preside the Supreme Council. The Ministerial Councilconvenes every three months, and may hold extraordinary meetings upon the request of oneMember State seconded by another.A meeting is considered valid if attended by two-thirds of the Member States.

Among other jurisdictions, the Ministerial Council is authorized to propose policies, lay outrecommendations, and encourage and coordinate the already existing activities in all fields.Resolutions adopted by other ministerial committees are referred to the Ministerial Council,which in turn would refer the relevant matters, along with appropriate recommendations, to theSupreme Council for approval. The Ministerial Council is also charged with arranging theSupreme Council meetings and preparing their agenda. Procedures of voting are similar to thoseapplicable at the Supreme Council. [GCC Charter]

Thirdly: The Secretariat-General is charged, among other functions, with preparing studiesrelated to cooperation, co-ordination, and integrated plans and programmers for joint work. It isalso entrusted with the preparation of periodic reports on the work of the GCC, follow upimplementation of the resolutions, prepare reports and studies when requested by the SupremeCouncil or the Ministerial Council. The Secretariat also makes preparation for meetings and

prepare the agendas and draft resolutions for the Ministerial Council. [GCC Charter]

The Organizational body of the Secretariat-General is comprised of the following:(1) A Secretary-General appointed by the Supreme Council for a period of three years renewableonly once.

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(2) Five Assistant Secretaries-General for political, economic ,Human and Environment ,Security , and military Affairs , as well as the head of the GCC delegation to Brussels, who areappointed by the Ministerial Council for three renewable years, upon nomination of theSecretary-General.(3) Directors-general of the Secretariat-General sectors as well as other staff that are appointed by

the Secretary-General.

The administrative structure of the Secretariat General consists of a number of sectors: PoliticalAffairs, Economic Affairs, Military , Human and Environment Affairs, Military Affairs , SecurityAffaires, Legal Affairs, Office of the Secretary-General, Finance and Administrative Affairs,Patent Bureau, Administrative Development Unit, Internal Auditing Unit, and InformationCentre, in addition to the GCC Delegation in Brussels and the Telecommunications Bureau inBahrain.

CLOSING STATEMENT OF THE SUPREEMCOUNCIL

The Final Communiqu of The 29th Session of the Supreme Council of

The Arab Gulf Cooperation CouncilMuscat, the Sultanate of Oman1-2 Muharram 1430 H,29-30 December 2008

Upon a generous invitation of His Majesty Sultan Qaboos Bin Said, the Sultan of Oman, theSupreme Council of the Gulf Cooperation Council held its 29th session in Muscat, the Sultanateof Oman on Monday and Tuesday, 1-2 Muharram 1430H, corresponding to 29-30 December 2008, under the chairmanship of His Majesty Sultan Qaboos Bin Said, the Chairman of thecurrent session of the Supreme Council and in the presence of Their Majesties and Highnesses:

- His Highness Sheikh Khalifa Bin Zayed Al-Nahayan,President of the United Arab Emirates.

- His Majesty King Hamad Bin Issa Al-Khalifa,King of the Kingdom of Bahrain.

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- The Custodian of the two Holy Mosques King Abdullah Bin Abdul Aziz,King of the Kingdom of Saudi Arabia.

- His Highness Sheikh Hamad Bin Khalifa Al-Thani,Emir of the State of Qatar.

- His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah,Emir of the State of Kuwait.

The meeting was also attended by:- His Excellency Abdul Rahman Bin Hamad Al-Attiya,The GCC Secretary General.

The Supreme Council considered the global financial crisis, its consequences and its economicimpacts. It directed the concerned ministerial committees to intensify coordination among themember states and take the necessary measures to limit its negative effects on the economies of the Council's member states.

The Supreme Council has also directed the concerned ministerial committee to exert every possible effort that would contribute in stabilizing oil prices in a manner that would achieve the pursed balance and joint interests of oil producing and consuming countries.

The Supreme Council reviewed the recommendations and follow-up reports submitted by theMinisterial Council and the progress achieved in the joint action march in all fields since the last

session of the Supreme Council. The Supreme Council has also examined the developments of political, security and economic issues in the region and internationally in light of the current andrapid developments taking place in the world, and has taken the appropriate decisions thereon asfollows:

In recognition of the joint efforts made in the Gulf on environmental issues, giving further incentives for generating more interest and productivity in this area, His Majesty Sultan Qaboos

bin Said, the Sultan of Oman, has endowed an award for the Human Affairs and EnvironmentalSector, which represents a common link between Member States and their peoples.

Direct support for important scientific research which aims at developing effective plans and policies ,helps in preserving clean and safe environment, while taking into consideration naturaltrends of climate cycles throughout centuries.

May Allah grant us successIssued in Muscat2 Muharam 1430 Hijri

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30 December 2008

SUMMARY

Gulf Cooperation Council [GCC]

The Gulf Cooperation Council [GCC] was established in an agreement concluded on 25 May1981 in Riyadh, Saudi Arabia between: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.These countries declared that the GCC is established in view of the special relations betweenthem, their similar political systems based on Islamic beliefs, joint destiny and common

objectives. The GCC is a regional common market with a defense planning council as well. Thegeographic proximity of the these countries and their general adoption of free trade economic policies are factors that encouraged them to establish the GCC.

Based on their conviction about the connected nature of their security and that an aggressionagainst any one of them is deemed an aggression against all of them, cooperation in the militaryfield has received the attention of the GCC states. Such conviction stems from the facts of geopolitics and faith in one destiny. Moreover, the security challenges in an unstable regionalenvironment, like the Gulf area, imposes on the GCC States coordination of their policies andmobilization of their capabilities.

The Gulf Cooperation Council (GCC) was formed in 1981 to confront their security challenges

collectively. The immediate objective was to protect themselves from the threat posed by theIran-Iraq War and Iranian-inspired activist Islamism (also seen as fundamentalism). In a series of meetings, chiefs of staff and defense ministers of the gulf states developed plans for mutualdefense and launched efforts to form a joint command and a joint defense network.

Ground and air units of the six member states carried out several multilateral exercises between1983 and 1987 under the code name of Peninsula Shield. Military assistance, funded mainly bySaudi Arabia and Kuwait, was extended to Bahrain for up-to- date fighter aircraft and a modernair base, and to Oman to improve its defensive capability at the Strait of Hormuz. The GCC

planned to integrate naval and ground radar systems and to create a combined air control andwarning system based on Saudi AWACS aircraft. Problems of compatibility with differentcommunication and electronic systems, however, delayed the introduction of these programs.

In 1984 the GCC defense ministers agreed on the creation of a two-brigade (10,000-man)Peninsula Shield Force. This joint intervention force was based in Saudi Arabia near King KhalidMilitary City at Hafar al Batin under the command of a Saudi officer. In addition to aheadquarters staff, the force consisted of one infantry brigade of about 5,000 men with elementsfrom all GCC states in 1992. Its mission, however, had not been publicly defined. It was notclear, for example, whether the joint force would have authority to intervene in a domesticemergency. The force could be enlarged at a time of threat; it was apparently reinforced prior tothe Persian Gulf War in 1991 but did not take part in the war as a distinct unit.

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In March 1991, after the conclusion of the Persian Gulf War, the six members of the GCC,together with Egypt and Syria, declared their intention to establish a deterrent force to protectKuwait, with Egypt and Syria to provide the bulk of the troops and the GCC states to provide thefinancing. The plan subsequently encountered a series of setbacks. At year's end, there appearedlittle chance that the Arab deterrent force would be installed. In the meantime, Kuwait hadsucceeded in obtaining security commitments from the United States and Britain and arranged for the prepositioning of United States military equipment.

The GCC States seek to build up their defence forces according to a common conception. In thiscontext, they have unified operational procedures, training, and military curricula. They alsoendeavour to accomplish compatibility of their military systems. Moreover the armed forces of the GCC States carry out joint military exercises with the Peninsula Shield Force, as well as jointair and sea manoeuvres.

Among the important achievements in the military field is the creation of the Peninsula ShieldForce in 1982, which incorporates the credibility of the GCC will. Another importantachievement was the resolution taken during Kuwait summit in 1997, which entailed to link theGCC Member States with a military communication network for early warning.

REFRENCES

1. Wikipedia. Retrieved 2008.

2. Tourism Australia . October 6, 2005. http://www.tourism.australia.com/NewsCentre.asp?sub=0315&al=1911 . Retrieved on 2007-04-07.

3. GCC statement on Media Cooperation4. Political Affairs5. Yemen Times . December 19, 2006. http://yementimes.com/article.shtml?

i=905&p=local&a=7 . Retrieved on 2007-04-07.6. The Closing Statement of the Twenty Second Session GCC The Final Communiqu of

The 29th Session 7. http://www.gcc-sg.org/eng/index.php?action=Sec-Show&ID=62&W2SID=3439

Retrieved on 2008-02-12.8. Arab Times :: GCC states to launch joint market today

9. www.answers.com10. www.wef.com11. www.gccsg.org12. www.arabtimesonline.com

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