Integration key to success

Current plans throughout the Gulf Cooperation Council (GCC) are in line with many nationals' desire to see an integrated and developed economy.

In this regard, Abdullah Bin Hamad Al Attiyah, Qatar's Deputy Prime Minister and Minister of Energy and Industry, last week called on GCC countries to take the necessary steps for completing stages of the GCC integrated economy, which will help the region be on a par with global economic blocs and enhance its economic position.

Similar reports were made by many ministers and officials in GCC countries. These reports emphasise the keenness to move forward with the economic integration approach due to believing in its importance, positive outcomes, and the fact that it conveys mutual benefit among member countries.

Public support

Moreover, there has been huge public support towards such an approach that can be perceived in civil society organisations, opinion writers, and the Gulf media. This proves the hope pinned by nationals on the annual GCC summits.

With such official and popular consensus, economic integration is still advancing at a very slow pace, which means that there are obstacles hindering this approach that can be resolved by ministries or concerned bodies that are involved in this operation.

If we were to examine the constant delays in completing the GCC Customs Union as an example, can the concerned ministers explain the ongoing postponement of its implementation?

This needs to be kept in mind especially after the Custom Union's advantages became apparent after introducing the common customs duties in early 2003, which helped boost trade exchange among GCC countries, increased customs duties revenues, and decreased the price and cost of customs-related services in trading operations.

In this context, would the GCC ministers of economy explain the delay behind the establishment of the GCC common market? This delay makes one ask many questions regarding this issue.

Could they explain for us what the reasons are for the delay in implementing the regulations of the common market agreement, which will transform GCC countries into a common market with great future prospects?

Another question is: Will the ministers of energy and industry define obstacles that prevent the setting up of a gas pipeline network linking Gulf nations?

Successful experiment

This is a logical question, especially after the successful experiment of the Dolphin pipeline network linking Qatar to the UAE and Oman, which reflected positively on these countries' economies and contributed to developing key sectors, namely the aluminium production sector in these three countries.

This is despite knowing that there are many important projects in the field of petrochemical and industries that rely on energy, oil byproducts and fertilisers, are either halted or cannot be expanded due to shortage in gas supplies.

Such a vital project can also be extended to Kuwait and Oman and maybe to Yemen and other Arab countries in the future. Gulf countries must be involved in this project, especially after the UAE and Saudi Arabia announced huge gas discoveries this year.

If there were difficulties and obstacles that were not overcome in the past 30 years, then how would the relevant ministers, each in his jurisdiction, remove these obstacles and consequently provide big support to the development in the GCC countries?

Obviously, there are non-economic reasons that stand in the way of the implementation of this project. Nevertheless, everyone will be affected by losses. The signs of such losses will not be viewed clearly in the short term, yet they will be realized in the future.

However, the interests of GCC countries have become interlinked in a manner that requires these countries to overcome their minor differences, which are not linked to other economic projects representing the interests of all with their huge profits, whether they were exporter or importer of gas and oil products.

The call by Al Attiyah conveys several messages that can constitute a new start for GCC ministers who have wide-ranging powers to implement joint projects that are lying idle on office shelves and on GCC economic agenda.

Dr Mohammad Al Asoomi is a UAE economic expert.