Gulf intra regional trade has continued to grow, reaching record highs with partially applying Custom Union provisions among Gulf Cooperation Council (GCC) countries. This nullifies the argument that the similarities between GCC economies stands against the growth of intra-regional trade, which will remain limited because there are no goods or services that can be traded among them.
This view may have been correct in the past, before the developments in international trade relationships where countries such as the UAE have been transformed into trade giants. Moreover, most of the trade conducted in the region goes through the UAE, and the economies of the six GCC countries have become more diverse than a decade ago.
Many GCC countries’ industrial and productive sectors depend entirely on semi-manufactured goods produced by one GCC country or another which results in value addition and re-exports.
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