Topics in Middle Eastern and North African Economies

An economic analysis of sustainability of a potential GCC economic and monetary union during 2005-2014

Document Type

Article

Publication Date

7-11-2016

Abstract

Gulf Cooperation Council (GCC) was set up in 1981 between Bahrain, Oman, Qatar, Saudi Arabia, United Arab Emirates and Kuwait for strengthening cooperation and economic development in the region. The GCC has made strides towards economic consolidation by forming a customs union and a common market. The long-term vision is to create an Economic and Monetary Union (EMU) with a single currency. Progress towards the EMU has been slow and the recent oil price plunge has led to concerns regarding sustainable growth of member countries due to their significant dependence on oil and lack of diversification. The purpose of this paper is to analyse the scope of an EMU in the GCC against the backdrop of current oil crisis and examine sustainability of such a union. The paper studies convergence criteria similar to the ones followed by the accession countries of the European EMU in the 1990s preceding the introduction of the single currency Euro.

Identifier

ISSN: 2042-5961

Journal Title

World Journal of Entrepreneurship, Management and Sustainable Development

Publisher

Emerald Insight Group Publishing Limited

Volume

12

Issue

3

Comments

This is also listed in Topics in Middle Eastern and North African Economies Volume 18, Number 1, May 2016.

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