The Gulf Cooperation Council (GCC) is a regional, intergovernmental, political, and economic union and military alliance comprising six Arab states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The institution was formally established on May 25, 1981, in Riyadh, Saudi Arabia, with its charter signed in Abu Dhabi, UAE. The GCC was created in response to regional instability, particularly the Iran-Iraq War and political unrest across the Middle East, aiming to enhance cooperation in security, economic stability, and social welfare. The core problem it solved was the need for a collective security and economic framework for the Gulf monarchies.
The GCC's mechanism is outlined in its Charter, with Article 4 stating the alliance was formed to strengthen relations and promote cooperation among member countries and their citizens. Its highest decision-making body is the Supreme Council, consisting of the heads of state, whose decisions on important issues require unanimous approval. The Ministerial Council, composed of foreign ministers, meets every three months to implement the Supreme Council's decisions. Key provisions include a customs union implemented in 2015 and the coordination of a 5 percent value-added tax rolled out starting in 2018. Security cooperation includes the Peninsula Shield Force, a joint military venture established in 1984.
The GCC connects to broader concepts like the Greater Arab Free Trade Area (GAFTA), of which all GCC members are also a part. It also relates to the European Union (EU), with which it has a Cooperation Agreement signed in 1989. A recent change is the approval of a new travel system, mirroring the EU's Schengen-style coordination, with a pilot phase scheduled to begin in December 2025 with the UAE and Bahrain. While the GCC has seen proposals like the transformation into a "Gulf Union" in 2012 to counterbalance Iranian influence, this plan was not unanimously adopted, and the organization remains a coordination mechanism rather than a strict integration organization.