‘EU’ of Arab Gulf nations in tatters

What was supposed to be an EU or ASEAN of the Arab Gulf nations today lies in tatters.

The decision of Bahrain, Egypt, Saudi Arabia, the United Arab Emirates (UAE), and the internationally recognised Yemeni government-in-exile to snap ties with Qatar has hit at the core ideals of the Gulf Cooperation Council (GCC).

Six Arab Gulf states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE — formed the GCC in 1981 to effectively realise economic and social integration among its members.

Despite being united by their oil and gas reserves, the six nation are bitterly divided on geo-political issues. Qatar has always been a problematic child. Apart from Sheikh Hamad bin Khalifa al-Thani ousting his father Sheikh Khalifa bin Hamad al-Thani in a bloodless coup in 1996, Qatar became the first Arab Gulf to establish diplomatic ties with Israel.

Although it was an open secret that the other problematic child, Oman, too had relations with Israel, Qatar even allowed Israel to open a trade office in Doha in 2000. However, Qatar permanently severed trade relations with Israel in 2009 following Operation Cast Lead.

Like India-Pakistan, the colonial British rulers have left disputed border issues among them as well. Bahrain and Qatar were locked in a fierce territorial dispute over the Hawar Islands and almost came to the brink of conflict in 1986. The two countries established full diplomatic relations in 1997, 26 years after becoming independent states.

Qatar also cancelled a border agreement signed in 1965  with Saudi Arabia after a border clash in September in 1992.

Given this background, the GCC has struggled to achieve most of its stated goals.

Unlike the EU, the GCC hasn’t expanded beyond its original six member states. Iran, which is a part of the Persian Gulf, is not included because it’s not an Arab state.

 GCC doesn’t have a common currency or official centralised monetary policy. Intra-GCC trade is still low and disappointing. Numerous barriers prevent a common market from becoming a reality.

The Arab Spring intensified regional integration efforts when late King Abdullah of Saudi Arabia put forward at the GCC summit in December 2011 a proposal to transition the GCC from its cooperation phase to the union phase, as envisioned at its founding. However, he did not elaborate on what form such a union might take, or any proposed steps to create it.

Saudi economist Ihsan Bu Haliga says: “Good intentions are not enough to set up integrated entities. More than three decades after its creation the GCC monarchies still remain divided over their oil, monetary and financial policies.”

Saying that each state has its own agenda, he blamed the status quo on reservations expressed by the six countries over the economic convention which was at the very root of the GCC’s creation.

Bu Haliga, a member of the Saudi consultative Shura Council, says that “transparency” in the relations between the six GCC countries was essential for any progress to be made.

These factors today have pushed the GCC on the brink of disintegration. The only glimmer of hope comes from Kuwait and Oman, who have not severed their ties with Qatar. Kuwait has announced that it is trying to mediate to resolve the crisis. However, Oman has not spoken on the issue, but announced that Oman Air will continue its flight to Qatar.