Durham E-Theses The role of the gulf cooperation council in the economic development of the Gulf States Al-Sani, Rashed Mezed Ali How to cite: Al-Sani, Rashed Mezed Ali (1992) The role of the gulf cooperation council in the economic development of the Gulf States, Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/6119/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk 2 THE ROLE OF THE GULF COOPERATION COUNCIL IN THE ECONOMIC DEVELOPMENT OF THE GULF STATES by RASHED MEZED ALI AL-SANI A thesis submitted for the degree of Doctor of Philosophy University of Durham Faculty of Social Sciences September 1992 The copyright of this thesis rests with the author. No quotation from it should be published without his prior written consent and information derived from it should be acknowledged. 2 7 APR 1993 Declaration I declare that no material in this thesis has previously been submitted for a degree at this or any other university. The copyright of this thesis rests with the author. No quotation from it should be published without prior written consent and the information derived from it should be acknowledged. ii Dedication This thesis is dedicated to my beloved parents, my brothers and my sisters with great respect for their encouragement, and patience. iii Acknowledgements There so many people who have helped in the production of this study that I can only mention those to whom I am particularly indebted. I am grateful to Mr. J.R.Lewis, my supervisor, for his valuable suggestions, constructive criticism and interest throughout which has enabled me to complete my task. I owe much to a number of friends and colleagues in Kuwait, particularly Mr Suliman Al-Toura from Kuwait University, Dr Taiba Al-Asfour from the Geography Department in Kuwait, Dr Abdulah Al-Gunaim (a former Minister of Education), Mrs Basmah Al-Otaibi from the Kuwait Fund for Economic Development, Mrs Fatimah Al­ Ghanim, Dr Jasem Al-Mannai, Senior Vice President of Planning and Research Department and Mr Mohammed Al-Sane, Vice President of Project Group in the Gulf Investment Corporation, Dr A.M.Al-Medej from Kuwait University, Miss Wafa Al-Bahar from the Ministry of Planning, Mr M.Al-Omaim, Assistant-Under Secretary of the Ministry of Planning, Miss Nuwal Al-Fezai, from Kuwaiti Ministry of Oil, Mr Jasem Al-Khalifa, Director of Survey in Municipality Department for their valuable advice.! also wish to express my sincere gratitude to many friends in the General Secretariat in Riyadh, especially Mr Mohammed Al-Shati, Director of Information Centre and Mr Mohammed Al-Sayari from the Research Centre for their encouragement and help. I also wish to express my sincere gratitude to many friends in Durham especially Dr Mahrous Hassan, Dr Ramadan Shalah, Dr Saif Al-Sowaidi, Mr Sadeq Abul, Dr Naif Baker Ahmed, Mr Mike Wood, Mr Mohammed Shamsan, Dr Ali Darwish Omran, Mr. B. Sharp, and Mrs.G, Sharp for their stimulating company and valuable friendship. My special thanks go to a number of government ministries, centres, and institutions, both in Kuwait and the rest of the Gulf States, for supporting and for providing data and information. And finally, I am indebted to Dr. Mo- iv hammed Al-Kubaisi from Qatar University for his stimulating company, helpful and valuable friendship. v Abstract As a regional organisation, the Gulf Cooperation Council is a some­ what unique experiment in the contemporary Middle East and in the Arab world in particular. It is the first regional organisation in the modern Arab nation-state system, aside from the Arab League, formed in 1946, that has epoused a func­ tional approach to cooperation, while at the same time preserving the political sovereignty and independence of the member states. Since its founding, the GCC has been the focus of debate regarding its nature and functions. Intentionally or not, it has become a major media event, a fact that has contributed to the credibility gap between rising expectations based on public pronouncements and real achievements. This thesis is an inquiry into the role of the Gulf Cooperation Council in the economic development of the participating countries. The study comprises seven chapters, detailing both the scope and purpose of the study, and the criteria employed in the research. The main chapters examine the relative contribution of physical and human resources involved in cooperation between the Gulf countries. In addition, the contribution of agriculture and fisheries, as well as industrial development, to the G.C.C. countries are expounded. The services in the G.C.C. countries are specified. External trade and migration in the G.C.C. countries is discussed in detail. The conclusion describes the role of the Gulf Cooperation Council in economic development and includes suggestions and recommendations for the future. Vl CONTENTS CHAPTERS One Introduction . 1 1.1 Context . 1 1.2 The Formation of the GCC . .. .. .. .. .. .. .. .. .. .. .. .. .. 3 1.3 Charter of the GCC:Objectives and Structure . 8 1.3.1 Objectives of the GCC ...................................... 10 1.3.2 Structure of the GCC . 10 1.4 Purpose and Methodology of Study .. .. .. .. .. .. .. .. .. .. .. .. 16 1.4.1 Purpose of Study . 16 1.4.2 Methodology of Study . 16 Two Physical and Human Resources ....................................... 20 2.1 Geographical Features . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 20 2.2 Population Size and Growth Rate . 22 2.3 Population by Age, Structure and Sex .. .. .. .. .. .. .. .. .. .. .. 23 2.4 Proportion of Economically Active Population by Economic Sector 24 2.5 Literate Population and Literacy Rate . .. .. .. .. .. .. .. .. .. 28 2.6 Geographical Distribution of Population . 28 2.6.1 Kuwait . 28 2.6.2 Oman . 36 2.6.3 Bahrain . 36 2.6.4 Qatar . 28 37 2.6.5 United Arab Emirates ....................................... 37 2.6.6 Saudi Arabia . 38 Three Agricultural Development in the GCC Countries . 40 3.1 Introduction . 40 3.2 Qatar . 40 3.2.1 Crop Production . 41 3.2.2 Meat, Fish and Related Production .. .. .. .. .. .. .. .. .. 41 3.3 Kuwait ........................................................... 43 Vll 3.3.1 Introduction . 43 3.3.2 Production, Area and Yield of Different Crops . 43 3.3.3 Meat and Fish Production . 44 3.3.4 Livestock . 44 3.4 Bahrain . 45 3.4.1 Introduction . 45 3.4.2 Production, Area, Yield of Different Crops . 45 3.4.3 Meat and Fish Production .. .. .. .. .. .. .. .. .. 47 3.4.4 Eggs, Milk and Dairy Production . 47 3.4.5 Livestock . 47 3.5 Oman ............................................................ 48 3.5.1 Introduction . 48 3.5.2 Production, Area and Yield of Different Crops . 49 3.5.3 Fisheries . 49 3.5.4 Livestock . 50 3.6 Saudi Arabia . 51 3.6.1 Introduction . 51 3.6.2 Production, Area and Yield of Different Crops . 52 3.6.3 Poultry, Livestock and Dairy Production . 53 3.6.4 Agricultural Loans and Subsidies . 54 3.6.5 Livestock . 56 3.6.6 Fisheries . 56 3.7 United Arab Emirates ............................................ 57 3.7.1 Introduction . 57 3.7.2 Livestock . 60 3. 7.3 Fisheries . 60 3.8 Agricultural and Fishery Cooperation Amongst the GCC States . 60 3.9 Summary . 62 Four Industrial Development in the G.C.C. Countries . 65 4.1 Introduction . 65 4.2 Qatar . 67 4.2.1 Introduction . 67 Vlll 4.2.2 Industry . 68 4.2.2.1 Oil Industry . 68 4.2.2.2 Gas Industry . 69 4.2.3 Petroleum Refining . 71 4.2.4 Petrochemicals . 72 4.2.5 Aluminium Smelting . 73 4.2.6 Cement Industry ................................... ; . 73 4.2.7 Iron and Steel Industry . .. .. .. .. .. .. .. .. .. .. .. .. .. 74 4.2.8 Other Industries . .. ..