What is the Gulf Cooperation Council (GCC)?

About GCC

• Definition: The Gulf Cooperation Council (GCC) is a regional political and economic alliance established in 1981.
• Member countries: Comprises six Arab states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
• Objective: To foster economic, security, cultural, and social cooperation among its members.
• Historical context: The GCC was formed in response to escalating regional tensions, particularly the Iranian Revolution (1979) and the Iran-Iraq War (1980–1988).

Key Features of the GCC

• Global significance: The GCC countries together hold almost half of the world’s oil reserves, making them vital players in the global energy market.
• Annual summits: The GCC convenes yearly summits to discuss strategies for cooperation and regional stability.

Organizational Structure of the GCC

• Supreme council:
  • Highest authority: Composed of the heads of state from all member countries.
  • Decision-making: Decisions are made through unanimous approval.
  • Presidency rotation: The presidency rotates annually, based on the alphabetical order of member states.
• Ministerial council:
  • Composed of foreign ministers or their representatives from member states.
  • Role: Proposes policies and implements decisions of the Supreme Council.
  • Meetings: Held every three months.
• Secretariat general:
  • Acts as the administrative arm of the GCC.
  • Functions: Monitors policy implementation and arranges meetings.
  • Headquarters: Located in Riyadh, Saudi Arabia.

India and the GCC

• Largest regional trading partner: The GCC is India's most significant regional trading bloc. Bilateral trade (FY 2023-24):
  • Total trade: USD 161.59 billion.
  • India’s exports: USD 56.3 billion.
  • India’s imports: USD 105.3 billion.
  • The UAE is India's 3rd largest trading partner and 2nd largest export destination.
• Workforce and Remittances: Approximately 8.9 million Indian expatriates reside in GCC countries, forming 66% of all non-resident Indians (NRIs).
  • Indian expatriates contribute significantly to remittances, a vital income source for India.

Q1). What is OPEC and its purpose?

OPEC, established in 1960, is an intergovernmental organization of 13 oil-exporting countries that coordinates petroleum policies to stabilize oil markets, secure fair prices, and ensure a consistent energy supply to consumers worldwide.

Source: IE