| Summary: |
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.
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