GCC economies and their role in the world economy Research Paper

GCC economies and their role in the valet economy - Research Paper ExampleThe Gulf Cooperation Council (GCC) was formed on May 26, 1981. The GCC is an makeup specifically formed to unite the Arab oil color producing countries. Its major operation angle is to the southern regions of Asian continent. GCC is made up of six active Arabian countries that involve the Saudi-Arabian-Arabian Arabia, United Arab Emirates, Kuwait, Oman, Bahrain and Qatar. However, some new applications for atomship welcome been received from other oil producing Arabian countries like Jordan and Morocco. The objectives of GCC are to unite the member states with the aim of harmonizing quotas of oil in the world food market. The members have several factors in common among them religion, political structures, climatic conditions and natural resources. The organization also seeks to coordinate and promote economic productivity of the member states (Mohammed, 2011). The organization also intends to boost educa tion, healthcare, custom and trade among the member states. Saudi Arabia Saudi Arabia in the views of Mohammed (2011) forms four-fifths of the entire GCC. Besides being a member of the GCC, Saudi Arabia is also a member of Organization of the Petroleum Exporting Countries (OPEC). Saudi Arabia has been voted the worlds largest oil reserve among the OPEC and the GCC member states. In fact, oil issue is the backbone of all the economic sphere of influences in Saudi Arabia. Estimates indicate that a third of the total oil produced by the OPEC comes from Saudi Arabia (Mohammed, 2011). Oil production in Saudi Arabia on a daily basis estimates at around 10 million barrels. As a result of massive oil reserves that infiltrate money to the country, Saudi Arabia enjoys a diversified economy with plenty of production industries that have offered jobs to its citizens and the world population in general. The oil sector has contributed to the development of various industries such as petrochem icals, fertilizers and steel manufacturing industries that boosted the export products of the country. Mohammed (2011) adds that Saudi Arabia has excelled in the production of dates and correct becoming the worlds best producer of dates. Saudi Arabia also has expanded fishing rationality and a lot of money has been ventured to modernize and promote sea fishing activities. In 1998, OPEC slashed Saudi Arabias global supply quota to 8 million barrels per day. The imposition of the quota led to significant elapse on the countrys total income. Telecommunications investment (% revenues) in Saudi Arabia In the reports of World Bank, telecommunication investments revenue in Saudi Arabia reached 84.12% in 2008. Telecommunication investments are expenditures associated with purchasing the ownership of telecommunication equipment infrastructures including land, building, get and computer software. Source Trading Economics, 2011 Current statistics in the world oil market show that Saudi Ara bia has much potential to increase its oil injection by additional 2.5 million barrels a day (Daya, 2011). Such an injection can boost oil supply in the world market and even ease the world energy crisis. Oil