Jordan bid to the Gulf Cooperation Council and Implications for the Expended GCC

Shabir Mohsin Hashmi ,Yongliang Zhao ,Zainab Alhayki

doi:10.7176/ejbm/12-6-14

Abstract

In 2011, the Gulf Cooperation council (GCC) invited Jordan and Morocco to join the council. This research is geared to evaluate the potential benefits of joining the GCC for the case of Jordan. It is argued that Jordan’s inclusion to the block would strengthen the economy of the member states, increase trade and investment opportunities and improve peace in the region. GCC Membership to Jordan might possibly support its economy and larger investment flows from the Gulf countries. On the flipside, Jordan accession carries several potential benefits to the GCC. Jordan’s strength is linked with its close proximity to the GCC, cordial relationships with the US and the EU and free trade agreements with major economies. Moreover, Jordan inherits professional military. If Jordan is part of the GCC, it might consolidate the military power and augment security of the GCC. Since the Arab Spring, the peace of the Middle East remained volatile. Recent rift between Saudi Arabia and Qatar, war in Syria and Yemen further destabilized the security of the region. This has also undermined the future of the GCC. In these circumstances, the expansion of the GCC is realistic and Jordan case caries some merit. Keywords : GCC, Jordan, Economic Integration, Peace and Security JEL : E61, F36, F50, F53, F59 DOI: 10.7176/EJBM/12-6-14 Publication date: February 29 th 2020

Highlights

The Gulf Cooperation Council (GCC) was founded in 1980.It is intergovernmental regional economic and political cartel of six Arab States of the Persian Gulf
The Kuwait Times reported that Jordan bid to the GCC is warmly welcomed by the Kingdom of Bahrain and Saudi Arabia, while, Kuwait and Qatar expressed their reservations
It is argued that the Jordan accession to the council will enhance trade and investment opportunities but it will reinforce the historical ties between the Arab countries

Summary

Introduction

The Gulf Cooperation Council (GCC) was founded in 1980.It is intergovernmental regional economic and political cartel of six Arab States of the Persian Gulf. It borders with Syria, Israel, Palestinian, Saudi Arabia, Iraq and Egypt To this nexus, Jordan presents as an entry point for trade and investment with the Middle East and North Africa region (MENA).The location of the country allows for diversification and expansion into increasingly affluent markets .Over the last decade, Jordan successively concluded preferential trade agreements with major economies, including the U.S and the European Union. Last year in 2018, the bilateral trade between Jordan and the GCC countries was estimated over $ 6 billion. According to the Jordan Department of Statistics, in 2017, the GCC accounted for 24.2% of Jordan’s imports, while 18.4% of its exports were destined for the Gulf States

5.2: Limited advantage to GCC

Findings

Conclusion