June 2, 2006

ON THE OCCASION OF THE 25TH ANNIVERSARY OF THE FOUNDATION OF THE GULF COOPERATION COUNCIL: A REPORT ON THE KINGDOM OF SAUDI ARABIA'S STEPS TO IMPLEMENT THE RESOLUTIONS OF THE GCC SUPREME COUNCIL. THE KINGDOM OF SAUDI ARABIA AT THE FOREFRONT OF THE GCC MEMBER STATES IN REALIZING THE IMPORTANCE OF SECURITY FOR DEVELOPMENT AND PROGRESS. THE ROLE OF SAUDI ARABIA IN THE FIELDS OF COOPERATION OVER 25 YEARS. The Kingdom of Saudi Arabia was the key drive force behind the GCC establishment and has contributed together with the other GCC states, to bring the GCC into reality. The Kingdom of Saudi Arabia has hosted many GCC summits, including the second summit in November 1981, which adopted a breakthrough document for the GCC co-operation movement, namely the GCC unified economic agreement. This significant document, has served as the blueprint for moves to enhance coordination and co-operation to build a common economic market that would eventually help in the drive towards integration and joint Gulf citizenship to realize the aspirations of the GCC peoples in unity and cohesion. The GCC unified economic agreement, embodied the idea of the GCC leaders calling for building and developing the capabilities of each GCC member state, and at the same time mobilising the combined resources toward enriching the collective power of the GCC entity in various political, economic and defence domains. Starting with the first five-year plan in 1970 (80 billion Riyals), development in Saudi Arabia has accelerated the pace of growth and by the fourth five-year plan of 1985-90, spending on development projects have almost doubled. Saudi Arabia has achieved giant strides, both in the economic and social development fields, which reflected positively in the high standards of living, security, stability and welfare in the kingdom. Thanks to the oil wealth, Saudi Arabia has managed to push ahead with industrial development by building a broad industrial base that not only helped meet domestic needs, but competed in markets abroad. Although industrialization especially in petrochemicals, based on Saudi Arabia's huge oil resources, is naturally expected development, the real challenge was in the agricultural field, Saudi Arabia, has succeeded in overcoming the unfavourable conditions represented by sufficiency in most agricultural products and to export part of its agricultural produce. Based on a sound agricultural policy, Saudi Arabia succeeded in meeting its domestic requirements of wheat, and has moved to export part of its wheat production and at the same time several million tons of cereals were produced. Saudi Arabia has also achieved the goal of self-sufficiency in vegetables, dairy products as well as poultry products. The Saudi leadership has been keen to allow the people to take an active part in state affairs and in 1992, the Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz of Saudi Arabia, decided to revive the 'Shura council' which was originally contemplated by the founder of the kingdom, king Abdul Aziz Al Saud. The Shura council was formed in 1993 with wide powers to study and propose laws that would serve the interests of the state and people. The membership of the council included leading scholars, experts and intellectuals. Saudi Arabia has put all its resources in the services of its national and regional interests foremost of which integration of the GCC states, out of its conviction that the GCC is a regional grouping of the Gulf people and resources to achieve further progress, security, stability and welfare for the Gulf people in particular, and Arab and muslims in general. To this effect, King Fahd presented to report at the 1994 GCC summit in Manama, outlining the main aspects of the GCC strategy to cope with rapid changes in the international arena, including political, economic and defence fields. The two-fold strategy is based on bolstering co-operaiton and coordination among the GCC states under the framework of the unified economic agreement and enhancing Gulf security and defence co-operation to confront any future challenges to the GCC people and states. The Kingdom of Saudi Arabia with its wise leadership and its key regional and international status, has been playing an effective role in realizing the goals of the Arab Gulf Cooperation Council (GCC). The Kingdom has adopted a number of resolutions to implement the resolutions of the GCC supreme council. The Kingdom, along with its other five brotherly countries of the Council, celebrated the Silver Jubilee anniversary of the establishment of the GCC. The GCC is comprised of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman. In the security field, the Kingdom was at the forefront of the GCC member states. Realizing the importance of security cooperation, the Kingdom has approved the GCC security agreement. It has also approved the unified GCC agreement for combating extremism associated with terrorism. In the field of military cooperation, the Kingdom has approved the GCC joint defense agreement. At the legal domain, the Kingdom has approved the implementation of the GCC resolution pertaining to the commercial arbitration in the GCC member states. As regards the economic affairs, the Kingdom has approved the GCC unified economic agreement. It has also approved the organization of the ownership of the GCC citizens of real estate in the GCC member states. Moreover, the Kingdom has allowed the GCC citizens to practice all economic activities and vocations in line with the restrictions set out by the GCC supreme council at its eight session. In the field of agricultural cooperation, the Kingdom has approved the system of agricultural quarantine and the entailed penalties for the violators of the regulations. In the commercial sphere, the Kingdom has shown keenness on enhancing trade relations with the GCC member states and has also approved the basic system for the GCC standard organization. In the industrial domain, the Kingdom has made big strides in the field of industrial cooperation and taken effective measures in this respect. Realizing the importance of the electric sector, the Kingdom has approved the first phase of the electric grid project in the GCC member states. Meanwhile, the Kingdom has approved the system of the GCC unified customs law, as well as the establishment of the data center for the GCC customs center in Riyadh. As regards the GCC relations with the international economic blocs, the Kingdom has approved the joint cooperation between the GCC members states and the countries of the European trade league. In the humanitarian and environmental sphere, the Kingdom has approved the GCC health ministers' resolution pertaining to eradicating polio. It has also approved the GCC agreement for the preservation wildlife. In the field of civil service, the Kingdom has approved the system of patents on inventions in the GCC states. It has also approved the system of combating money laundering in line with the systems of the GCC member states. On December 19, 2005, the leaders of the Gulf Cooperation Council (GCC) concluded their 26th summit in Abu Dhabi. Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz headed the Saudi delegation to the summit, which was named the "King Fahd Summit." In its final communiqué, the GCC Supreme Council lauded the outcomes of the third extraordinary Organization of the Islamic Conference summit held recently in Makkah, as well as the resulting Makkah Declaration. The Supreme Council expressed satisfaction with the results achieved at the Second Summit of the South (Group of 77 plus China) held in June in Doha, Qatar. The Council reviewed member countries' achievements in economic, political, education, and social development. It stressed the importance of continued comprehensive modernization and development in today's world in order to maintain security, stability and prosperity for GCC countries and peoples, while preserving their national identity, heritage and history. It also reviewed cooperation in all fields since its last session and gave a comprehensive evaluation of political and security issues, both regional and international. The Council issued several decisions. On economic issues, it approved a unified trade policy document that aims to unify GCC countries' trade policies and enable them to present themselves as a single economic unit. It also adopted a policy facilitating the movement of goods, services, citizens and transportation among member countries, taking into consideration environmental issues and consumer protection. The interim period for the customs union was extended through the end of 2007. The Council agreed to exempt a number of goods from tariffs and to allow GCC citizens to conduct commercial activities in all member states, particularly in the areas of stock ownership and trading. The communiqué also called for a quick completion of the requirements for establishing a GCC common market by the end of 2007, and approved standards for the establishment of a GCC monetary union. It considered a number of studies dealing with enhanced links between member nations in the areas of water, railway, an identification card, and measures to prevent the avian flu. The council also said that it would finance development projects in Yemen and look into convening a conference to boost investment in that country. The communiqué welcomed the outcome of negotiations with the European Union, and expressed the hope that they would lead to a free trade agreement soon. It also welcomed progress in negotiations over free trade zones with China and Turkey. Turning to terrorism-related issues, the communiqué welcomed the results of the Counter-terrorism International Conference hosted by Saudi Arabia in February 2005, and called for the establishment of an international counterterrorism center as proposed by King Abdullah. On military cooperation, the Council approved the decisions reached by GCC defence ministers and reviewed a letter by King Abdullah to develop a joint force, opting to refer that issue to the next summit. The Council praised GCC interior ministers' decision to sign an agreement for the extradition of those convicted of deprivation of liberty. The communiqué lauded cooperation and coordination between member states in drug-trafficking issues. It also adopted guidelines for controlling materials that lead to the depletion of ozone, and instructed GCC education ministers to accelerate implementing joint projects relating to the development in educational systems. On international issues, the communiqué welcomed the recent elections in Iraq, characterizing them as a new beginning for the country and a guarantee for its unity and stability that will allow Iraq to resume its active role in the Arab and international arenas. It reaffirmed GCC support for Iraq's reconstruction. The Council stated that a comprehensive, just peace in the Middle East would not be possible without the establishment of a Palestinian state with Jerusalem as its capital. It also called on the international community to pressure Israel to join the Non-Proliferation Treaty (NPT) and allow its nuclear facilities to be inspected. It also urged Israel to withdraw from the Syrian Golan Heights and Shebaa Farms in Lebanon. On Lebanon, the GCC strongly condemned the assassination of former Prime Minister Rafiq Al-Hariri and the ongoing assassinations there, and called on the Lebanese people to remain united. The Council expressed satisfaction with Syrian cooperation with an international investigation committee into Hariri's killing. Finally, the communiqué said it was not content with the inability to make any kind of progress with Iran over its occupation of three islands claimed by the United Arab Emirates Greater Tunb, Lesser Tunb and Abu Mousa and called for a peaceful resolution of the issue. On the other hand Minister of finance Dr Ibrahim Al-Assaf has highlighted the achievements attained by the Arab Gulf Cooperation Council (GCC) and hailed the economic progress of the Council's member countries. In a statement to the Saudi Press Agency on the occasion of the 25th anniversary for the establishment of the GCC, Dr Al-Assaf said the Saudi government is keen on developing the process of cooperation and economic integration among the GCC countries. He noted that the establishment of the GCC customs union on January 1, 2003 is one of the most important achievements. "The union will have a positive impact on the process of trade exchange among the GCC countries," he said. Dr Al-Assaf pointed out that the the GCC supreme council had decided the establishment of the monetary union and the issuance of the GCC unified currency by January 2010. "The GCC has made big strides in the field of cooperation and integration, and it is hoped that it will go ahead on this path," he added. The GCC is made up of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.