GCC + OIC (National Officers Academy).ppt

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1. Gulf Cooperation Council (GCC)

Logo - Two concentric circles - Bismillah phrase is written in Arabic

The lower part - Council's full name, in Arabic

The inner circle - embossed hexagonal shape that represents the
Council's six member countries

2. Historical Background

Heads of States of the GCC in
 Abu Dhabi on 25 May 1981
Agreement of the GCC was signed on 11
 November 1981 in Abu Dhabi

3. GCC-Geostrategic Importance

5. Introduction

The
 
Gulf Cooperation Council 
(
GCC)

A regional
 intergovernmental political and economic union

consisting of all
 Arab states of the Persian Gulf except Iraq

Its member states are
 

Bahrain,
 Kuwait, Oman, Qatar, Saudi Arabia, and the UAE

Charter of the Gulf Cooperation Council was signed on 25
 May 1981

Its headquarters in Riyadh, Saudi Arabia

Secretary General -Dr. Nayef Falah M. Al-Hajraf (Since Feb 1, 2020)

All current member states are
 monarchies

This area has some of the fastest-growing economies in the world

Discussions -future membership of
 Jordan, Morocco, and Yemen

6. GCC Countries Profile
•The Kingdom of Bahrain 
- Its 1.4 million people - GDP per capita of
$51,800. It has 124.5 million barrels of proven
 oil reserves.
•Kuwait 
- Its 2.9 million residents - 11th highest standard of living in the
world. Its GDP per capita is $69,700. The country holds 6%
 of the
world's oil reserves. That's 101.5 million barrels.
•The Sultanate of Oman 
- 3.4 mn ppl - Oil reserves - 5.4 million barrels.
Shifting
 to tourism - GDP per capita is $45,500.
•Qatar 
- The second richest country in the world, with a GDP per capita
of $124,900 for each of its 2.3 million residents. It has 25.2 billion
barrels of proven oil reserves - 13% of world's natural gas reserves.
•.

7. GCC Countries Profile
•The Kingdom of Saudi Arabia 
- largest GCC country - 28.5 Mn ppl, It
has 16% of the world's proven oil reserves (266.5 mn barrels) Its GDP
per capita is $55,300.
•The United Arab Emirates 
- Its 6 million people enjoy a per capita
GDP of $68,00. That's thanks to a diversifying economy that includes
Dubai and the world's tallest building, the Burj Dubai Khalifa. Dubai is
the second-largest of the seven city-states in the UAE. Abu Dhabi is
the largest. The UAE has 97.8 million barrels of proven oil reserves

GCC Area- 2,673,110-square-kilometre (1,032,093 sq mi)

8. GCC Charter (22 Articles)

ARTICLE ONE - The Establishment of the Council

ARTICLE TWO - The Cooperation Council shall have its headquarters in
Riyadh, Saudi Arabia

ARTICLE THREE - Cooperation Council Meetings: The Council shall
hold its meetings in the state where it has its headquarters, and may
convene in any member state.

ARTICLE FIVE- Council Membership -The Cooperation Council shall be
formed of the six states that participated in the Foreign Ministers'
meeting held in Riyadh on 4 February 1981.

ARTICLE SIX - Organization of the Cooperation Council, The
Cooperation Council shall have the following main organizations:

1) Supreme Council 2) Ministerial Council 3) The Secretariate General

9. The objectives of the GCC (Article-IV )

To effect coordination, integration and inter-connection between
Member States in order to achieve unity

To strengthen relations, links and cooperation between their peoples
in various fields

To formulate regulations in the following:
 

Economic and financial affairs
 

Commerce, customs and communications

Education and culture
 

To stimulate scientific and technological progress

To establish joint ventures and encourage cooperation by the private
sector

10. Structure

11. Structure

12. Goal towards a Monetary Union

In 2001, the GCC Supreme Council set the following goals:

A Common Customs Union
 in January 2003

Common market by 2007

Common currency by 2010

The name
 ’Khaleeji’ has been proposed for this currency.

If realized, the GCC monetary union would be the second-largest
supranational monetary union in the world

13. What Happens If GCC Drop Dollar
Peg

Dollar peg - when a country maintains its currency's value at a fixed
exchange rate to the U.S. dollar

The GCC countries have reasons to drop their
 peg to the dollar

GCC official policy -members will keep it until the Council has created
a monetary union, like
 the European Union.

When the dollar fell 40% between 2002 and 2014, it created an
inflation rate of 10%
 in these countries.

It forced the price of oil and other commodities to increase. If they
removed the peg to the dollar, they would not need to buy so many
Treasuries
 to stabilize their exchange rate. That would cause the
dollar to decline, causing inflation in the United States.

Oil ‘ll no longer be priced in $. That could result in lower oil prices.

14. GCC’s Internal Dynamics

Oman
 announced that it would not be able to meet the target date for a
common currency.

the UAE announced withdrawal from the monetary union scheme, with the
announcement that the central bank for the monetary union would be located
in
 Riyadh, Saudi Arabia, and not in the UAE

Saudi Arabia and Kuwait: disputes over shared oilfields

Saudi Arabia and UAE pressuring Qatar-serious row among the three

Qatar’s exit from OPEC after 57 year to focus on gas

Emirati, Saudi and Qatari governments spent a total of
 $ 190 million
lobbying
 in Washington between 2017 and 2020 in order to fuel a war of
narratives

15. GCC’s Internal Dynamics

Divergent paths to develop private sectors (UAE, Bahrain, Kuwait)

Gulf countries continue to rely on public sector enterprises

Government-led mega projects in private sector development translated into low
levels of foreign direct investment
 

Since 2015, GCC is trimming expat workforce

Nationals now comprise 85 to 90 percent of the public sector workforce

Bahrain, Oman, and Saudi Arabia and around 75 percent in Kuwai

Qatar is the only country with nationals comprising less than 50% of the public sector
workforce

In 2017, GCC agreed to institute a value-added tax (VAT) in countries

Failure in the common imposition of a
 VAT at a rate of 5%

KSA and the UAE imposed VAT of 5 percent in January 2018 followed by Bahrain a
year later. Some countries expanded corporate taxes

16. Monetary Council: Bottlenecks

On 15 December 2009, Bahrain, Kuwait, Qatar, and Saudi Arabia
announced the creation of a Monetary Council

To introduce a
 single currency for the union.

Establishing a central bank, and

Choosing a
 currency regime

The Council met for the first time on 30
 March 2010.

Kuwait said that a single currency may take up to ten years to
establish.

In 2014, major moves - to ensure launch of a single currency.

Oman and UAE later announced withdrawal from proposed currency

17. Monetary Council:
Bottlenecks

The GCC — set up in 1980 as a fortification against Iran and Iraq

Iraq
 is the only Arab country bordering the Persian Gulf that is not a
member of the GCC

In 2012, Iraq stated that it wanted to join the GCC

The lack of membership of Iraq is widely believed to be due to

Low-income economy

Its substantial Shia population

Its political system, and

Its
 invasion of member state Kuwait during the gulf war

Iraq under turmoil since the fall of Saddam Hussain

Yemen also negotiated for membership (War & Humanitarian Crisis

18. Monetary Council:
Bottlenecks

In order to reduce their future dependence on oil, the GCC states are
pursuing wider economic structural reforms

Oil politics in the region

In 2011, Saudi Arabia proposed to transform the GCC into a "Gulf
Union“

With greater economic, political and military coordination

To counterbalance the
 Iranian influence in the region

20. Amid Pandemic

Saudi Arabia’s central bank foreign reserves
 fell in march at their
fastest rate in at least 20 years and to their lowest since 2011

KSA slipped into a $9 billion budget deficit in the first quarter

Oil prices fell and Saudi currency dropped on April 2021in the forward
market, after U.S. crude oil futures collapsed below $0 on a
coronavirus-induced supply glut

OPEC, Russia and other oil-producing nations on April 12 finalized an
unprecedented production cut
 of nearly 10 million barrels, or a tenth
of global supply

GCC block agreed to establish a network to protect food supply

21. Pakistan and GCC

Pakistan-GCC Free Trade Agreement

Joint ventures and business opportunities

Pakistan’s manpower in Gulf countries (Forced repatriation)

Rising Indian influence in Gulf region and Middle East-a challenge for
Pakistan

Pakistan tried to strike a balance for its relations with KSA and Qatar

Pakistan holds key role in ECO, SAARC, SCO and OIC

Islamic Force and Pakistan's role

22. Pakistan and GCC (Recent Years)

In recent years, Pakistan-GCC ties have witnessed a downward trajectory as a
result of changing geopolitical dynamics

Pakistani Foreign Minister Shah Mehmood Qureshi’s criticism of the Organisation
of Islamic Co-operation (OIC) led to a further degradation of those ties

Apart from the changing dynamics in South Asia, it is also the changing attitudes
of the GCC countries towards Israel that are affecting the relationship

The deterioration in bilateral ties will likely affect economic ties between
Pakistan and the GCC

23. Conclusion

Economic union and monetary union seem remote possibilities

Peninsula Shield Force has been eclipsed by the Islamic Military
Counter Terrorism Coalition

US involvement in the region and rising pressure on Saudi Arabia

Saudi Arabia has always looked to the United States for
protection against
 Iran

US-Iran rivalry

Iran’s involvement in the ME and Gulf would remain a serious
concern for the GCC

Future expansion or disintegration of GCC??

25. Organization of Islamic Cooperation

26. OIC- Starters

Second largest Org after UN - 57 states spread over four continents

Over the last
 40 years, membership grown from 30 to 57 states

Members contribution $6.425 trillion to world's (GDP) in 2016 (WB)

This is equivalent to 8.51 percent of the world's GDP

Population - 57 states ;1.769 billion in 2016, 23.77% of world (WB)

Charter amended - keep pace with unraveled developments in world

Present Charter - adopted by Eleventh Summit held in Dakar in 2008

Pillar of the OIC future Islamic action - requirements of 21st century

The OIC has permanent delegations to the
 UN and the EU

The official languages are- Arabic, English, and French

28. History

The arson of Al-Aqsa Mosque in occupied Jerusalem

On 21 August 1969, the
 Al-Aqsa Mosque went in flames

Amin al-Husseini, the former Mufti of Jerusalem called for all
Muslim heads of state to convene a summit

The Islamic Conference-was established in Rabat, Morocco on 25
September 1969

A resolution was passed stating that

"Muslim governments would consult with a view to promoting
among themselves close cooperation and mutual assistance in the
economic, scientific, cultural and spiritual fields, inspired by the
immortal teachings of Islam."

29. History

1970 the first meeting of Islamic Conference of Foreign Ministers
(ICFM) held in Jeddah

to establish a permanent secretariat in Jeddah

In Feb.1972, the Organization of the Islamic Conference (now the
Organization of Islamic Cooperation) was founded

30. OIC- Observers

States

Bosnia and Herzegovina (1994)

Central African Republic (1996)

Kingdom of Thailand (1998)

The Russian Federation (2005)

Turkish Cypriot State (1979)
International Organizations

United
  Nations (UN) (1976), Non-Aligned Movement (NAM) (1977)

League of Arab States (LAS) (1975), African Union
  (AU) (1977)

Economic Cooperation Organization (ECO) (1995)

31. OIC Charter

The first OIC Charter - adopted by the 3rd ICFM Session held in 1972

The present revised Charter of the OIC was adopted by the Eleventh
Islamic Summit held in Dakar on 13-14 March 2008

The revised charter promotes

Human rights

Fundamental freedoms, and

Good governance in all member states.

On 28 June 2011 during the 38th Council of Foreign Ministers
meeting (CFM) in Astana, Kazakhstan

the organization changed its name to Organization of Islamic
Cooperation

32. Organization Structure

33. Organization Structure

34. OIC GOALS

According to its Charter, the OIC aims to preserve

Islamic social and economic values

Promote solidarity among member states

Increase cooperation in social, economic, cultural, scientific, and
political areas

Uphold international peace and security

Advance education, particularly in the fields of science and
technology

Take steps to remove misperceptions about Islam and advocate
elimination of discrimination against Muslims in all forms and
manifestations

35. GCC - Ten Year Program of
Action

OIC face many challenges in the 21st century and to address those
challenges, the Third Extraordinary Session of the Islamic Summit
held in Makkah in December 2005, laid down the blue print called the
Ten-Year Program of Action

It successfully concluded with the close of 2015. A successor
programme for the next decade (2016-2025) has since then been
adopted

The new programme OIC-2025 is anchored in the provisions of the
OIC Charter and focuses on 18 priority areas with 107 goals

36. Programme of Action OIC-2025 

37. OIC- Issues and Challenges

Israeli–Palestinian conflict

Democracy & Human rights

The Middle-East Conundrum

The Yemen Crisis

The Syrian Civil War and the OIC

Shia-Sunni Divide in the Muslim world

Islamophobia and the Role of OIC

Combating three menaces-Terrorism, extremism and Radicalism

Turning a blind eye to the plights of China’s Uighur Muslims

Overcoming poverty and underdevelopment

38. OIC- Issues and Challenges

Relationship with India

India's entry into the OIC

Kashmir Issue

OIC & Muslim Renaissance- remote possibility / reality in near future?

Pan-Islamism and the Unity of ‘Ummah’- a huge challenge

Establishing a single economic and political entity as of EU???

Revival of the institution of ‘Khilafat’!!!!

Political landscape of OIC members

Cultural diversities

Sectarianism

terrorism

39. Recognizing Israel – Quid Pro Quo

UAE -
 US approval of the sale (though it requires the agreement of
Congress) of top-of-the-line F-35 aircraft to the UAE to bolster its military
capacity and its prestige in the region.

Morocco – In return of recognition of Moroccan sovereignty over the
disputed region of Western Sahara and the sale of four sophisticated
large aerial drones as a further reward for its public embrace of Israel.

Sudan - American offer to take it off its list of terror-supporting states. It
led to a toning down of the criticism in the West for its undemocratic
credentials

Bahrain - to buy insurance from both Israel and the US against its
neighbour Iran, which is seen by the regime as the primary external
supporter of Bahrain’s Shia majority agitating for democratic rights.
Manama’s move is also a trial balloon on behalf of Riyadh

40. Islamic Military Counter Terrorism Coalition
(IMCTC)

For military intervention against ISIL, Yemen
 and other counter-
terrorist
 activities

Original 34 members.

countries joined and the number reached to 41
 

Most of its participants are members of the
 OIC

Coalition having majority
 Sunni Muslim populations

it has been called "a
 sectarian coalition" by Hakeem Azameli, a
member of the Security and Defense Commission in the Iraqi
parliament

Iran has expressed strong reservations

41. Pakistan and the OIC
Pakistan is the most significant member of
 OIC

population, it is the OIC's second largest member.

nuclear weapons- seventh-largest standing military force

research, education and economy

large
 labour workforce working in various Muslim countries

The 2nd summit of OIC held in
 Lahore between 22–24 February 1974

Support for Palestine and Middle East issues

Islamic Military Counter Terrorism Coalition

Pakistan’s Relations with Iran and Saudi Arabia- striking a balance???

Saudi Arab and Gulf States’ tilt towards India and the India’s increasing
role in the Middle East