ABSTRACT
This chapter will assess the GCC bloc against the traditional optimal currency area (OCA) criteria (Mundell 1961; McKinnon 1963; Kenen 1969). Despite its emergence in the 1960s the OCA theory continues to be a useful benchmark for evaluating the appropriateness of a given region for MU. The degree to which the GCC bloc constitutes an OCA will not only provide an indication of the utility of MU for the Arabian Peninsula, but may also influence the degree of political motivation towards turning this ambitious plan into reality.
