Prospects for the GCC: What’s Next?

Abstract

The article examines the features of economic development of the Arab countries of the Gulf in the context of integration processes of the Cooperation Council for the Arab States of the Gulf (GCC) over the past 40 years.

The authors analyzed the current literature on trends and directions of the economic environment development in the Gulf countries. The article also studies the stages of integration, including a free trade zone, a customs union and a single market. The fundamental macroeconomic prerequisites for the creation of a monetary union on the territory of the GCC are also part of the research.

The authors outline the importance and prospects for the functioning of the GCC unified energy grid, which increases the reliability of the energy system of all participating countries. As a result, the costs of building additional power plants and providing reserve capacities are also reduced.

The article addresses issues of fundamental differences in trade and foreign policy at both the national and integration levels. The authors identify the fundamental aspects of the disagreements and conduct a comparative analysis at the level of the GCC. Particular attention is paid to the economic consequences of the Qatar trade embargo in 2017–2021.

The authors consider relevance and prospects of the development of the GCC in the current geoeconomic and geopolitical conditions.