The Gulf Cooperation Council (GCC) consists of six Arab states in the Arabian Gulf that have experienced rapid economic growth. Their economies have become less dependent on government and natural resources as they have developed private sectors and attracted foreign investment and expatriate workers. However, investments between Arab countries remain low due to political risks and bureaucracy. The GCC countries offer economic stability due to their oil and gas reserves, which account for 45% and 15% of global reserves respectively. They have a combined GDP of over $550 billion and inflation rates under 5%. Their populations of over 38 million people have high incomes that support domestic demand. The GCC has focused industrialization on oil, gas, petrochemicals and energy-intensive industries due to

2. Introduction:
 The Gulf Cooperation Council (GCC) consisting of
states six Arab states (Saudi Arabia, Bahrain, Qatar,
Oman United Arab Emirates, and the Kuwait) located in
Arabian Gulf. The GCC economies are one of the
fastest-growing international markets and have become
increasingly important to the economy of the whole
world.
development and expansion has made it an active
seeker for modern technological capacities,
infrastructure development, and business services.
Development and improvements have been made to
build up a private sector that is fewer dependents on
government or natural resources, thus making the area
an attractive destination for investment and competitive
market for expatriate workers and overseas
expansions.

3. GCCs openness to foreign investment and
capital has been motivated by an expectation
that foreign capital and investment will attract
financial resources- visible and invisible, as
well as bringing in modern technology.
However, investments and trade links among
the Arab countries leave much to be desired.
Capital-rich countries do not feel safe investing
in people-endowed or resource-rich countries.
However this latter group of Arab countries can
insure food safety, enlarged markets for
industrializing GCC countries and investment
opportunities Political risk is often cited as a
deterrent, along with bureaucracy. Most often
governments are blamed for failure to devise a
system that motivates the public as well as the
private sector to joint efforts.

4. CHALLENGES AND
OPPORTUNITIES IN GCC
ECONOMIES
1.General Attitude towards Foreign Investors
2.Trade integration and Economic Philosophy in GCC economies
3.Economic Status of GCC economies

5. Economic Stability
 The six countries of the GCC possess many common and
rather special characteristics. They all depend on oil and gas
for government revenues and foreign exchange earnings. Oil
will remain the major source of energy and the main vehicle
to development for years to come. Of the world's proven oil
and natural gas reserves, GCC states hold 45% and 15%
respectively, according to conservative estimates. GCC states
have been recording positive GDP growth rates even at times
of international recession. Their Consolidated GDP has
surpassed the landmark of $ 550 Billion according to World
Bank. Expenditure on capital formation (investment) totals
more than 25% of GDP. Another indicator of stability, inflation,
has remained one digit, and below 5% in most recent years in
all GCC countries.

6. The GCC Service sector
Market
 GCC states constitute an economically united bloc
which involves a market size of a population
approaching 38.7 million inhabitants. the per capita
income for GCC states is more than $ 14,317. In
other words the populations of the GCC countries
enjoy high levels of income, even by advanced
industrialize countries standards. Third, the high
incomes enjoyed by GCC countries are reflected in
high purchasing power and effective demand.

7. Resource Endowment and
Industrialization
As petroleum and natural gas form the
greatest volume of GCC resources, their
industrial development has been directed
mainly towards oil and gas based
industries such as petroleum refining,
chemical fertilizers and petrochemical
industries and/or to energy intensive
industries such as aluminum and steel .
The availability of low-cost energy
resources is a blessing for GCC
industrialization. For example, the gas
used as a feed stock to the petrochemical
industry is associated gas and most of it is
a by-product of crude oil production. The
cost of producing this gas is very low and if
it is not used it would have to be flared.

8.  he GCC countries investment climate is
conducive to foreign investment. GCC
countries are continuously adopting
policies and taking measures to improve
this climate and taking into consideration
changes in the international economic
parameters and factors. GCC economies
recognize the value of attracting and
maintaining foreign investment and have
resulted to adopting measures aimed at
attracting and encouraging foreign
investment.

9. Thank you!
Any questions?