Gulf Cooperation Council (GCC)

The Gulf Cooperation Council, or GCC, is a regional group of six Arab countries on the Arabian Peninsula: Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain and Oman. They are all monarchies, rich in oil and gas, and located along the Persian Gulf and the Arabian Sea. The GCC helps them cooperate on the economy, security, trade and people's movement. For India, the GCC is its largest trading bloc and home to around 9 to 10 million Indians.

Why does it exist?

In 1979 a revolution took place in Iran, and in 1980 the Iran-Iraq war began. The small Gulf monarchies felt unsafe and exposed. They wanted to stand together for security and to build a shared economy. It is like neighbouring shopkeepers in one market forming an association: together they can protect their street and bargain better than alone.

Where did it come from?

The GCC was founded on 25 May 1981 at a summit in Abu Dhabi. Its official name is the Cooperation Council for the Arab States of the Gulf. Its headquarters (the Secretariat General) is in Riyadh, Saudi Arabia. Its membership has stayed at the same six countries since the start. Iran, Iraq and Yemen, though they are Gulf-region countries, are not members.

How does it work?

The GCC has three main bodies:

• Supreme Council: The heads of state of the six members. It is the top body and meets every year. The chair rotates among members.
• Ministerial Council: The foreign ministers. It prepares decisions and suggests policies.
• Secretariat General: The permanent office in Riyadh, headed by a Secretary General. As of 2026, this is Jasem Mohamed Albudaiwi.

How far has economic integration gone?

The GCC has moved step by step:

• 1981: A Unified Economic Agreement was signed.
• 1983: A free trade area among members came into force.
• 2003 (January): A customs union was launched, so members charge a common tariff on goods from outside.
• 2008 (1 January): A common market started, giving GCC citizens equal treatment in jobs, business and property across member states.
• A planned common currency has not been launched. On security, the GCC has a joint military force called the Peninsula Shield Force.

The Qatar crisis (2017 to 2021)

On 5 June 2017, Saudi Arabia, the UAE and Bahrain, along with Egypt, cut ties with Qatar and imposed a land, sea and air blockade. They accused Qatar of supporting terrorism and of being too close to Iran; Qatar denied this. The crisis ended with the Al-Ula Declaration, signed on 5 January 2021 at the 41st GCC Summit in Al-Ula, Saudi Arabia. This episode showed that the GCC can split badly from within.

India and the GCC

The GCC matters to India for four big reasons:

• Trade: In 2024-25, India-GCC trade was US$ 178.56 billion, about 15.42% of India's total trade. India's exports were US$ 56.87 billion and imports US$ 121.68 billion, so India runs a large trade deficit (it buys more than it sells).
• Energy: A large share of India's crude oil and LNG comes from GCC countries.
• People and remittances: Around 9 to 10 million Indians live in GCC countries. The UAE (about 3.55 million) and Saudi Arabia (about 2.64 million) host the most. Indians in the GCC sent close to 38% of all remittances India received in 2024-25.
• Security and connectivity: The Gulf sits next to key sea routes like the Strait of Hormuz. Cooperation on counter-terrorism and maritime security helps India.

How have India-GCC ties grown?

The first India-GCC Political Dialogue was held on 26 September 2003. A Framework Agreement on Economic Cooperation was signed in August 2004. FTA talks were held in 2006 and 2008, but they stopped, and the process was put on hold in 2011 when the GCC paused trade talks with other countries. On 9 September 2024, the first India-GCC Joint Ministerial Meeting for Strategic Dialogue in Riyadh adopted a Joint Action Plan 2024-2028 covering health, trade, security, agriculture, food security, transport, energy and culture.

The Terms of Reference for a new India-GCC FTA were signed on 5 February 2026, and a Joint Statement formally launching the negotiations followed on 24 February 2026.

India's partnerships with each GCC member

Besides dealing with the GCC as a group, India builds ties country by country. A "strategic partnership" is a label India gives to close, long-term relationships covering many areas together (trade, energy, defence, security, people). It is a political understanding, not a military alliance.

• Oman: Strategic partnership since November 2008. It is India's oldest strategic partner in the Gulf. India-Oman CEPA signed on 18 December 2025, in force from 1 June 2026.
• Saudi Arabia: Strategic partnership through the Riyadh Declaration (2010); a Strategic Partnership Council was set up in October 2019.
• UAE: Comprehensive Strategic Partnership since 2017; India-UAE CEPA in force since 1 May 2022.
• Kuwait: Strategic partnership since December 2024.
• Qatar: Strategic partnership since February 2025.

Commonly confused concepts

• GCC vs Arab League: The GCC has only six Gulf monarchies, with its headquarters in Riyadh. The Arab League (founded 1945, headquarters in Cairo) is much bigger and includes Arab countries from Morocco to Iraq.
• GCC vs OPEC: OPEC (Organization of the Petroleum Exporting Countries) is a group of oil-exporting countries from many regions, with its headquarters in Vienna. Qatar left OPEC in 2019 but is still in the GCC.
• Customs union vs common market: A customs union means members trade freely and charge the same tariff on outsiders. A common market goes further: people, money and services can also move freely.
• Strategic partnership vs alliance: A strategic partnership is a close working relationship with no duty to defend each other. An alliance (like NATO) has a promise of mutual defence.

Issues, criticism and the way forward

• Trade deficit: India imports far more from the GCC (mostly oil and gas) than it exports. An FTA is hoped to open Gulf markets for Indian goods and services.
• FTA hurdles: Past talks stalled over market access, tariffs on petrochemicals, and rules for workers and services.
• Workers' welfare: Indian workers in the Gulf have faced issues like unpaid wages, harsh conditions and the sponsorship ("kafala") system that ties a worker to one employer. Several GCC states have reformed parts of it.
• Regional tensions: Conflicts involving Iran, Israel, Yemen and the Red Sea can disrupt shipping, oil prices and the safety of Indians in the region.
• Energy transition: As the world moves to clean energy, both sides are shifting from a simple buyer-seller oil relationship to investment, renewables, food security and technology.
• Way forward: Experts suggest finishing the India-GCC FTA, using GCC sovereign wealth funds for Indian infrastructure, protecting migrant workers, and linking payment systems like UPI across the Gulf.

Concepts to Know

• Monarchy: A country ruled by a king, emir or sultan, where the position usually passes within one family.
• Remittance: Money that workers living abroad send back to their families at home.
• Trade deficit: When a country buys (imports) more from another country than it sells (exports) to it.
• Sovereign wealth fund: A large investment fund owned by a government. Gulf countries use their oil earnings to invest abroad through such funds.
• LNG (Liquefied Natural Gas): Natural gas cooled into a liquid so it can be carried in ships over long distances.