Economic Policies and the Possibilities of Unified GCC Currency

Abstract

The aim of this study is to identify the extent to which the GCC countries can adopt similar economic policies by the time the GCC unified currency is formed in 2010. Among other convergence standards, we examined the economic structure of the GCC countries to identify similarities and differences. The study finds significant differences between the economic policies of GCC countries. Moreover, the results suggest that the GCC countries need more policy coordination to smooth out their differences thus designing more unified economic policies which would contribute to the establishment of a monetary union.