The Unified Economic Convention of GCC Countries (or the 1981 Economic Agreement) signed in November 1981 is the foundational GCC Charter for closer economic relations and stronger links embodying the member states' desire to develop, extend, and enhance economic ties with one another. The agreement encompassed coordination and cooperation in trade, movement of funds, individuals and economic activities, technical cooperation in research, science and technology, transportation and communication, and financial cooperation. The 2001 Economic Agreement expanded the areas where GCC nationals are to be treated equally or what the GCC officially terms as “economic nationality”. In addition, the 2001 Agreement provided the framework for establishing a customs union, a common market, and a common currency.

2a. 1981 Economic Agreement

The 1981 Agreement developed the plan for joint economic action and the phases of economic integration and cooperation among the GCC states. This agreement formed the core of the integration programmes. In particular, the agreement included:

1. • Achieving freer trade in goods (agricultural, animal, and industrial products as well as natural resources) and the coordination of trade policies and regulations, including a common external tariff.

2. • National treatment of all GCC citizens.

3. • Convergence and unification of laws, regulations, and strategies in industrial development, technical cooperation, and financial cooperation.

4. • Interconnecting infrastructure in member states, particularly in transportation and communications, electricity and gas, and promoting the establishment of joint ventures.

5. • Key trade regulations, including one regarding country of origin for industrial products, which stipulated that a national of a member state should own at least 51 per cent of the producing company, and value added should not be less than 40 per cent of its final value for a given item to be considered a product of national origin.