ABSTRACT
From the early 1980s, the AGCC states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – took some steps towards economic integration. Barriers to free movement of capital, goods, labour and nationals were eliminated. Corporations and individuals were granted national preferential treatment. In early 2003, common external tariffs were imposed under the umbrella of a Custom Union. Since 2000, a significant step has been taken towards the creation of an advanced stage of economic integration – the MU. At its meeting in Bahrain in 2000, the Supreme Council of the AGCC agreed to make a working plan and a timetable to establish a single AGCC currency.1 By the end of 2002 AGCC national currencies were pegged to the US dollar.
