Sharjah’s Ruler, Sheikh Sultan bin Muhammad Al Qasimi (L), with UAE President Sheikh Zayed Bin Sultan Al Nahyan at the 1981 GCC Summit. Gulf News Archives
Sharjah’s Ruler, Sheikh Sultan bin Muhammad Al Qasimi (L), with UAE President Sheikh Zayed Bin Sultan Al Nahyan at the 1981 GCC Summit. Gulf News Archives

1981 - The founding of the GCC

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Updated 19 April 2025
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1981 - The founding of the GCC

1981 - The founding of the GCC
  • The union of six Gulf states has accomplished much of what it set out to do 44 years ago

RIYADH: When, in January 1968, Britain announced its intention to leave the Gulf by 1971, it sent shock waves throughout the region. The search intensified for a new and more reliable security architecture. It took several steps, ending with the formation of the Gulf Cooperation Council on May 25, 1981. 

During the period between Britain’s announcement of 1968 and its actual withdrawal from the Gulf on Dec. 16, 1971, there was first an attempt to form a nine-member union between Bahrain and Qatar and the seven Trucial States, all of which were under various protection treaties with Britain. When that attempt failed, efforts were directed at forming a union among the Trucial States. The UAE was announced on Dec. 2, 1971, initially of six emirates, Abu Dhabi, Dubai, Fujairah, Sharjah and Umm Al-Quwain. Ras Al-Khaimah, the seventh emirate, joined the following February.  

After that first step, the search continued for a larger framework to include the rest of the Gulf states, including Saudi Arabia, Bahrain, Qatar and Kuwait. Sheikh Jaber Al-Sabah of Kuwait championed the renewed efforts. In May 1976, he formally called for the establishment of a Gulf union during a visit to the UAE, whose president, Sheikh Zayed, strongly supported the idea. 

In November 1976, in Muscat, a security framework that would also have included Iraq and Iran was discussed but abandoned because of fundamental differences over the concept, especially between Iran and Iraq. 

Efforts to establish the GCC continued without Iran or Iraq. Saddam Hussein of Iraq tried to hinder those efforts unless Iraq was included, which was difficult to do given its war with Iran at the time. The Soviet Union and China were also opposed, for fear that the new organization would be Western-oriented. 

How we wrote it




Arab News announced the second GCC summit in Riyadh yielded “excellent results,” evidenced by a unified economic agreement.

The security vacuum was part of the rationale for advancing the founding of the GCC to close ranks among Gulf states. Besides Britain’s withdrawal, the revolution in Iran in February 1979 produced a clerical regime explicitly seeking to export its brand of radical politics to its neighbors and undermine their security. It helped in establishing, funding and training militant groups for that purpose in Bahrain and Saudi Arabia, in addition to spreading its influence in Iraq, Syria and Lebanon. 

In October 1979, in a meeting held in Taif, Saudi Arabia, the general framework of the GCC was agreed, but differences remained on some issues. Some favored focusing on security and military integration — even a formal military alliance — while others wanted the new organization to emphasize soft power and economic integration. 

In 1980, Saudi Arabian Foreign Minister Prince Saud Al-Faisal was given the task of bringing the different views together and leading the exercise of drafting the charter, supported by Kuwaiti Foreign Minister Sheikh Sabah (who later became the Emir of Kuwait from 2006 until his death in 2020), Bahraini Foreign Minister Sheikh Mohammed bin Mubarak, and others. 

A flurry of meetings of ministers and experts took place in the early months of 1981, in Kuwait, Riyadh and Muscat, to finalize the draft, which was finally adopted by the heads of state on May 25, 1981, in Abu Dhabi, in the first formal meeting of the new organization. 

The GCC Charter was a compromise between the different formulations discussed for the new group. It did not privilege a particular emphasis, but called for “coordination and integration between member states in all fields, leading to their unity.” The reference to unity as a goal was important to guide the work of the organization. The reference to “all fields” gave the impetus for the formation of institutional structures dedicated to different branches of integration, including political, economic and security. 

Key Dates

  • 1

    The charter of the Cooperation Council for the Arab States of the Gulf is signed by the heads of state of the UAE, Saudi Arabia, Bahrain, Oman, Qatar and Kuwait at a conference in Abu Dhabi.

    Timeline Image May 25, 1981

  • 2

    GCC leaders sign a unified economic agreement during their second summit, in Riyadh.

  • 3

    Peninsula Shield, a joint GCC defense force, is established, with its headquarters at Hafr Al-Baatin in northeastern Saudi Arabia.

    Timeline Image Oct. 15, 1985

  • 4

    A GCC customs union is created.

  • 5

    Introduction of the GCC common market.

  • 6

    Saudi Arabia, the UAE and Bahrain withdraw their ambassadors from Doha, accusing Qatar of failing to abide by an agreement not to support “anyone threatening the security and stability of the GCC, whether as groups or individuals.”

    Timeline Image March 5, 2014

  • 7

    The GCC announces during its annual meeting the formation of a regional police force, based in Abu Dhabi.

    Timeline Image Dec. 8, 2014

  • 8

    King Salman’s vision for strengthening joint action by GCC members is announced in Riyadh during the organization’s 36th summit.

  • 9

    GCC announces activation of Unified Military Command HQ in Riyadh as a concrete step toward enhanced military coordination.

Today, the GCC Secretariat employs about 1,500 civilian staff, from the six member states, and hosts the main policymaking divisions of the organization. Its work is aided by about 30 specialized entities that deal with specific issues. There are economic organizations such as standards, patents, intellectual property and investment, as well as internal security organizations. Military organs employ additional uniformed staff. 

Since its inception in May 1981, the GCC has undoubtedly accomplished a lot of what it set out to do more than four decades ago. Economic tools, such as the free trade area, which was set up in 1983, the customs union (2003) and the common market (2008), have created great synergies between member states that have led to improved efficiencies and wide and dynamic markets. 

However, attempts at reaching a full economic union and a unified currency have yet to succeed. 

By economic and social indicators, the GCC states have been a brilliant success, in part because their membership in the GCC provided economies of scale, a deeper market and wider reach. 

In 1981, the combined gross domestic product of the six member states was just shy of $200 billion, and most GCC states were performing poorly in economic and social indicators. At that time, most GCC states had just shaken off British rule, which had lasted about 200 years, impoverished their economies, and ossified their political and social development. As a result, these states were underperforming economically and needed the solidarity and support of other GCC members. 

Today, the combined GCC GDP is about $2.4 trillion — a 12-fold increase over 1981. At the same time, per capita income has skyrocketed in some member states. And while in 1981 several GCC member states were low-ranking in most human-development indices, such as the level of education, health conditions, life expectancy and the gender gap, today GCC countries lead on those indices. Illiteracy has been fully eradicated, free health services are top notch and GCC universities sit high on international rankings. 




GCC leaders gather at the Abu Dhabi InterContinental Hotel for the inaugural summit. Gulf News Archives

Other significant achievements were also made, including the establishment of the unified military command in November 2018, building on decades of close cooperation between land, air and naval forces, including through the Peninsula Shield based in northern Saudi Arabia since 1982, and the GCC Naval Operations Coordination Center in Bahrain. 

The GCC Police was established in 2012 and has been based in the UAE since. It coordinates the work of internal security forces at the operational level, in addition to the Riyadh-based Security Affairs division. 

However, a lot remains to be done to reach the goal of “unity” cited in the charter. The emerging, and almost existential, challenges that the region faces require new ways of doing things. Business as usual is no longer adequate. 

Member states have, over the years, proposed closer cooperation to meet those challenges. In 2012, the late King Abdullah of Saudi Arabia proposed transition from the “cooperation” phase to a full-fledged union. 

In 2015, King Salman proposed a comprehensive vision aimed at upgrading cooperation mechanisms in economic, social, political, internal security and defense areas. His vision was adopted by other leaders and has become the GCC’s road map since then. While work is in progress to implement the remaining elements in this vision, Saudi Arabia has announced that it intends to submit a phase two of this vision. 

One area that has been referred to in summit communiques repeatedly is the reform of GCC’s institutions, including the GCC Secretariat and the 30-odd other entities in its orbit. It has been recognized that governance needs to be overhauled to provide more transparency, accountability and efficiency. 

King Salman’s vision for the GCC, which was adopted by all leaders in December 2015, started that process but the pace of change has not been fast enough. 

  • Abdel Aziz Aluwaisheg is the GCC assistant secretary-general for political affairs and negotiation, and a columnist for Arab News. The views expressed in this piece are personal and do not necessarily represent GCC views.


Over 40 Indian firms have established regional HQs in Saudi Arabia, official reveals

Over 40 Indian firms have established regional HQs in Saudi Arabia, official reveals
Updated 3 min 24 sec ago
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Over 40 Indian firms have established regional HQs in Saudi Arabia, official reveals

Over 40 Indian firms have established regional HQs in Saudi Arabia, official reveals

RIYADH: More than 40 Indian companies have established headquarters in Saudi Arabia, with additional facilities in the defense sector expected in the near future, according to a top official.   

Abdulaziz Al-Qahtani, chairman of the Saudi-Indian Business Council, made the comments as Indian Prime Minister Narendra Modi arrived in Jeddah on Tuesday for a two-day visit. 

He is expected to meet with Crown Prince and Prime Minister Mohammed bin Salman during the trip.  

Al-Qahtani said the visit aligns with Saudi Arabia’s broader push to localize defense spending, boost technology transfer, and expand domestic investment across sectors that contribute to national gross domestic product.  

In an interview with Al-Eqtisadiah, Al-Qahtani said Saudi investments in India are valued at around $10 billion, including stakes by the Public Investment Fund in major companies such as Reliance Jio Platforms, Reliance Retail, OYO Hotels, and the Health Technology Co. 

“Al-Qahtani pointed out that the Saudi-Indian Business Council is working to encourage Indian investment in Saudi Arabia, identify investment opportunities in India, and transfer and localize technology in various sectors, such as space and defense,” Al-Eqtisadiah reported.   

“It also aims to exchange expertise in education and training, benefit from mutual expertise in tourism and entertainment, and cooperate in the healthcare sector, pharmaceutical and medical supplies industries, and enhance integration in logistics services,” the report added.  

Al-Qahtani added that India has invited Saudi Arabia to invest in its growing defense sector, which has opened up to private investors in recent years.  

Indian firms that have already established regional bases in Saudi Arabia include those working in automobile and bus manufacturing.  

The move by the more than 40 Indian firms comes amid a wave of multinational companies establishing regional bases in the Kingdom. 

Almost 600 international companies have set up bases in Saudi Arabia since 2021, including Northern Trust, IHG Hotels & Resorts, and Deloitte, the Saudi Press Agency reported in March. 

The growth was fueled by the government-backed Riyadh regional headquarters program, which offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom. 

India remains a key energy partner for the Kingdom, as it imported 14 percent of Saudi Arabia’s crude oil production and 18 percent of its liquefied natural gas exports in the past year.    

Bilateral trade has also expanded in sectors such as chemicals, construction, and contracting, as well as healthcare training, and information technology.   

Total trade between the two countries reached around $42 billion in the financial year 2023-24. Of this, Indian exports to Saudi Arabia accounted for approximately $11 billion, consisting of engineering products, rice, and petroleum derivatives, as well as chemicals, food and medical supplies, and textiles.    

Saudi exports to India totaled SR31 billion ($8.2 billion), including crude oil, liquefied natural gas, fertilizers, chemicals, and plastics.   


Syria arrests Assad-era officer accused of ‘war crimes’: ministry

Syria arrests Assad-era officer accused of ‘war crimes’: ministry
Updated 3 min 10 sec ago
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Syria arrests Assad-era officer accused of ‘war crimes’: ministry

Syria arrests Assad-era officer accused of ‘war crimes’: ministry
  • The statement accused Tinawi of involvement in “committing war crimes against civilians, including a massacre” in the Damascus countryside in 2016

DAMASCUS: Syrian authorities said Tuesday they had arrested a former officer in the feared security apparatus of ousted ruler Bashar Assad, the latest such announcement as the new government pursues ex-officials accused of atrocities.
The interior ministry announced in a statement that security forces in the coastal province of Latakia had arrested the “criminal brigadier-general Sultan Al-Tinawi,” saying he was a key officer in the air force intelligence, one of the Assad family’s most trusted security agencies.
The statement accused Tinawi of involvement in “committing war crimes against civilians, including a massacre” in the Damascus countryside in 2016.
It said he was responsible for “coordinating between the leadership of the Lebanese Hezbollah militia and a number of sectarian groups in Syria.”
Tinawi has been referred to the public prosecution for further investigation, the statement said.
A security source, requesting anonymity as they were not authorized to speak to the media, said that Tinawi held senior administrative positions in the air force intelligence when Jamil Hassan was head of the notorious agency.
Hassan has been sentenced in absentia in France for complicity in crimes against humanity and war crimes, while the United States has accused him of “war crimes,” including overseeing barrel bomb attacks on Syrian people that killed thousands of civilians.
Tinawi had been “head of the information branch of the air force intelligence” before Assad’s ouster late last year, the security source told AFP, describing the branch as “one of the most powerful and secret security agencies in the country.”
Since taking power in December, Syria’s new authorities have announced a number of arrests of Assad-era security officials.
Assad fled to Moscow with only a handful of confidants, abandoning senior officials and security officers, some of whom have reportedly fled to neighboring countries or taken refuge in the coastal heartland of Assad’s Alawite minority community.


Vietnam urges stricter controls on origin of goods after tariff shock

Vietnam urges stricter controls on origin of goods after tariff shock
Updated 7 min 21 sec ago
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Vietnam urges stricter controls on origin of goods after tariff shock

Vietnam urges stricter controls on origin of goods after tariff shock
  • The ministry called for stricter controls to avoid “sanctions that countries may apply on goods imported to their countries“
  • “Uniform and determined measures are required... to stop and prevent fraud in the origin of goods”

HANOI: Vietnam’s trade ministry has ordered authorities to tighten control over the origin of goods to avoid sanctions by trading partners in the wake of threatened US tariffs, according to a document seen by AFP on Tuesday.
A document by the ministry dated April 15 said escalating trade tension meant Vietnam was increasingly exposed to trans-shipment fraud.
Less than two weeks earlier, US President Donald Trump had threatened massive 46 percent levies on Vietnam, with Washington accusing the country of facilitating Chinese exports to the United States and allowing Beijing to get around tariffs.
In the document, the ministry called for stricter controls to avoid “sanctions that countries may apply on goods imported to their countries.”
“Uniform and determined measures are required... to stop and prevent fraud in the origin of goods... especially illegal imported raw materials and goods without origin for the production of goods for export,” it added, without naming China.
Hanoi is now trying to negotiate with Trump over the so-called reciprocal tariffs, which have been paused until July.
On Tuesday, Prime Minister Pham Minh Chinh urged for “negotiations to promote balanced, stable, sustainable, and effective trade relations with the United States.”
He warned however that the talks were “not to affect another market.”
China on Monday said it “firmly opposes” other countries making trade deals with the United States at Beijing’s expense, warning it would take “countermeasures” against them.
During his visit to Vietnam last week, China’s President Xi Jinping urged the communist neighbor to join forces in upholding free trade.
Trump, however, said the trip was aiming to “screw” the United States.
Vietnam was Southeast Asia’s biggest buyer of Chinese goods in 2024, with a bill of $161.9 billion.
In the first three months of this year, the United States was Hanoi’s biggest export market.
Vietnam has long pursued a “bamboo diplomacy” approach — striving to stay on good terms with both China and the United States.


Chances of Alonso staying in Leverkusen ‘50-50’, says CEO

Chances of Alonso staying in Leverkusen ‘50-50’, says CEO
Updated 19 min 17 sec ago
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Chances of Alonso staying in Leverkusen ‘50-50’, says CEO

Chances of Alonso staying in Leverkusen ‘50-50’, says CEO
  • Carro told reporters that “my gut feeling is that it’s 50-50” Alonso would stay
  • “If a team he has played for comes, we would sit down and discuss it and we wouldn’t stand in his way”

MADRID: Bayer Leverkusen CEO Fernando Carro said Monday the club had a 50-50 chance of holding onto manager Xabi Alonso amid rumored links between the coach and Real Madrid.
Carro also revealed the club had a “gentlemen’s agreement” with Alonso, allowing him to leave to coach one of the clubs he played for as a player for a fee.
Alonso, who played for Real and last year took Leverkusen to an unbeaten league and cup double, has been linked with the top job at the Bernabeu, with current coach Carlo Ancelotti rumored to be headed for the exit.
Speaking ahead of the Laureus Sports Awards, where the club is nominated for breakthrough of the year after their debut Bundesliga win last season, Carro told reporters that “my gut feeling is that it’s 50-50” Alonso would stay.
“Xabi has no exit clause, but we have a gentleman’s agreement. If a team he has played for comes, we would sit down and discuss it and we wouldn’t stand in his way,” he said.
Carro said the club “needs clarity” and “the decision needs to be in the next three or four weeks. We cannot wait until the end of the season.”
“We are not naive, the position of the coach is very important for a club and it is true that we are preparing for next season with him.
“We have worked with him every day; he is fully committed to this preparation.”
After winning the title last season, Leverkusen have fallen back slightly and sit eight points behind league leaders Bayern Munich with four games remaining.
Leverkusen were eliminated from the Champions League by Bayern and were knocked out in the semifinals of the German Cup by third-division Arminia Bielefeld
Despite the drop off, the club is still on track for its second best points total.
Carro also said he believed star midfielder Florian Wirtz, 21, “has a contract until 2027 and I believe he will play for us next year.”


Saudi gold investment demand up 9% in 2024 as bar purchases surge 

Saudi gold investment demand up 9% in 2024 as bar purchases surge 
Updated 22 min 19 sec ago
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Saudi gold investment demand up 9% in 2024 as bar purchases surge 

Saudi gold investment demand up 9% in 2024 as bar purchases surge 

RIYADH: Saudi Arabia’s demand for gold bars and coins rose 9 percent in 2024 to 15.4 tonnes, reaffirming the Kingdom’s position as the Gulf region’s largest investment market for the precious metal, a new report showed. 

The World Gold Council’s Gold Demand Trends Full Year 2024 report attributed the increase to heightened investor appetite for safe-haven assets amid economic uncertainty, despite a slowdown in jewelry purchases. 

The document highlighted that Saudi Arabia’s performance in the gold market aligns with a broader regional trend, with countries like the UAE and Kuwait also showing strong growth. 

Saudi investors responded to fluctuations in gold prices, taking advantage of opportunities in the market. 

In particular, demand for bars surged, while the sale of coins saw a slight decrease. The report noted that this robust performance was not limited to the first three quarters of 2024 but continued in the final quarter, with a 20 percent year-on-year increase in bar and coin purchases to 4.3 tonnes. 

Despite the strong growth in investment demand, gold jewelry consumption in the Kingdom experienced a decline, falling by 8 percent to 35 tonnes in 2024. 

This decrease reflects the impact of high gold prices, which have limited the purchasing power of consumers. 

The report indicated that the demand for gold jewelry saw a slight recovery in the fourth quarter of 2024, driven by a price dip that prompted buying. 

The World Gold Council also observed a regional trend where gold remained a key asset class for investors, particularly in the face of rising inflation and geopolitical instability. 

As the global gold price reached record highs in 2024, Saudi investors increasingly turned to gold as a hedge against these challenges. 

The UAE also registered an increase in bar and coin demand, rising 15 percent annually to 13.3 tonnes in 2024. Fourth-quarter demand in the UAE climbed to 3.4 tonnes, up from 3.1 tonnes a year earlier. 

However, jewelry consumption in the Emirates declined 13 percent over the year, totaling 34.7 tonnes, reflecting similar affordability challenges seen across the region. 

Looking ahead, the World Gold Council expects the Kingdom’s gold market to remain resilient, supported by strong investor interest in gold and its role as a hedge in uncertain times. 

The report came as gold extended its record run on Tuesday, breaching $3,500 per ounce, as weakness in the dollar, US President Donald Trump’s attacks on the Federal Reserve and trade war fears boosted demand for the safe-haven asset.

Spot gold was up 0.5 percent at $3,440.51 an ounce by 3:21 p.m. Saudi time, after rising as much as 2.2 percent to $3,500.05 earlier in the session. US gold futures climbed 0.9 percent to $3,454.60.