Dubai: Launching the Gulf common market on January 1, 2008, is one of the most important decisions made by the Gulf Cooperation Council since its creation in 1981.
The announcement, made at the 28th Gulf Cooperation Council (GCC) Summit that concluded on Tuesday in Doha, came after the implementation of a series of previous decisions that laid the ground for the success of this approach, which is the first of its kind in the developing world.
Setting up the free trade zone in 1983 was one of the decisions that opened up all fields for GCC investors and professionals, and was followed by the unified customs tariff in 2003.
All the steps were necessary to reach complete economic integration and cooperation between GCC countries and meet their interests, in view of globalisation, open market and competition.
These also project the growing position of the GCC countries in the global market, which is increasingly depending on Gulf oil as the main source of energy.
The anticipated outcome of the landmark move will be major, and will influence the economies of GCC countries, especially the UAE, whose economy occupies a leading position as a unique model of development.
Contribution
I believe the results would be extremely significant, since the implementation of earlier decisions faced many obstacles, including the movement of commodities and services between member states, for many reasons.
Among the reasons are misunderstanding, differences in interpretation of the decisions, and sometimes conflicting local laws and regulations.
The launch of the Gulf common market will remove the misunderstanding because the decision is very clear. The market will be based on the grounds considering Gulf nationals and corporate bodies equal in all states.
It includes equal rights in residency, travel and education as well as equal economic, financial and investment opportunities, including trading in the stock markets, setting up companies, buying and selling properties, working in the public and private sectors, pension and social security.
The common market will emerge to provide unlimited investment opportunities.
It holds the key to removing all obstacles and the speedy amendment of local laws, which contradict the creation of the common market, according to Article 3 of the Unified Economic Agreement.
A lesson can be learned from the early experience of the creation of the UAE Federation in 1971, when a common market was established between the seven emirates. It is expected the GCC common market would benefit all member states.
It would be manifested in growing trade, fast flow of capital and benefiting from qualified GCC manpower.
The step corresponds to the status of GCC states in global economy, as the common market will enhance their competitiveness in international markets, encourage the creation of GCC public shareholding companies and merging companies in the banking sector.
It will also encourage more coordination in other sectors such as aluminium, petrochemical and oil and gas industries.
The UAE will be one of the most important components of the common market, because of the great growth in its infrastructure in the past few years.
In turn, it will largely benefit from this market as active UAE capital has already clenched important investment opportunities and are looking for more.
The UAE is also the first trade hub in the region, and will be able to attract qualified Gulf cadres, who were hesitant to move to other GCC countries because of losing the advantages they enjoy in their countries.
The service industry in the UAE saw major leaps lately, including financial, and communication and transportation services, while the UAE accumulated important expertise in asset management and property development, which other GCC countries can benefit from.
If things go as planned, we will see an internationally influential GCC common market, which may form a considerable regional and global cartel that will turn the Gulf region into a point of attraction for more foreign investment.
The market would gain more power if followed by the launch of the GCC's single currency in 2010.
