SOAS Research Online

Abstract

The GCC states boast high per capita incomes and a voracious appetite for showcase construction projects, which symbolise their drive to transform finite oil resources into modern economies. During the past decade, significant strides were made in integrating their economies through establishing a customs union, common market and monetary council to study prospects for a shared currency. Underlying fundamentals, however, point at a different direction as the movement of goods, capital and labour has not been as fluid as anticipated. This policy brief evaluates the challenges, successes and future opportunities of economic integration in the GCC. Only through eliminating nominal and structural barriers in the movement of goods, capital and labour – along with institutional efforts at unifying fiscal and monetary policy – can the region benefit from integration.