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Gulf Cooperation Council (GCC)

India’s largest trading partner bloc is not one country. It is a group of six Gulf states, formed in 1981 against the backdrop of the Iranian Revolution and the Iran-Iraq War.

Iran itself is not in it. This page explains what the GCC is, why it formed and how it is organised. It also covers its economic steps, its link with India and who leads it. Keep three questions in mind. Who are the six? Which body is the highest? Why does India care?

At a glance

Four key facts on this topic

01 1981Charter signed in Abu Dhabi on 25 May 1981. Headquarters in Riyadh.
02 6Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman. Not Iran.
03 1984Year Britannica gives for creating the Peninsula Shield Force.
04 2026India and the GCC launched FTA talks by Joint Statement on 24 February 2026.

Terms. GCC: Cooperation Council for the Arab States of the Gulf. Bloc: a group of countries acting together. Charter: the founding document. FTA: a trade deal that cuts tariffs.

Contents
  1. What the GCC is
  2. Why it formed in 1981
  3. How the GCC is organised
  4. Economic unity so far
  5. Strains inside the GCC
  6. Why India cares
  7. India-GCC FTA talks
  8. Who leads the GCC
  9. What the exams asked
  10. Remember this
  11. 6 understanding checks
  12. Related articles
  13. 7 practice MCQs

Must Know · Understand the GCC

1

What the GCC is

1.1 Who are the six members?

The GCC is the Cooperation Council for the Arab States of the Gulf. Its charter is the founding document that sets out its rules. Article 5 says the council consists of the six countries that took part in the Foreign Ministers’ Meeting in Riyadh on 4 February 1981.

The six members are:

  • Saudi Arabia
  • Kuwait
  • The United Arab Emirates (UAE)
  • Qatar
  • Bahrain
  • Oman

Iran is not a member. Iraq is not a member either. The charter lists only the six signatories above.

Britannica adds that Jordan and Morocco were invited to join in 2011. Morocco declined. Jordan’s application stayed delayed because of internal GCC disagreements. The charter page on the GCC site, last updated on 17 March 2025, still names only the six.

A common slip is to think Iran must belong because the bloc is about the Gulf. The charter’s list of signatories has no Iran.

1.2 Where was it signed, and where is the headquarters?

The charter ends with its signing line. It says the charter was signed in Abu Dhabi, United Arab Emirates, on 25 May 1981. The GCC’s own 2009 book also places the first summit of 1981 in Abu Dhabi.

Article 2 says the headquarters of the GCC is in Riyadh, Saudi Arabia.

Some sources give Riyadh for the founding. An older note of the Ministry of External Affairs (MEA) says the agreement was concluded in Riyadh. Britannica says the GCC was established in Riyadh in May 1981. This page follows the charter text, which says Abu Dhabi.

Think it through: The charter was signed in Abu Dhabi. So why is the headquarters in Riyadh?

Signing place and headquarters are two separate things. Article 2 fixes the headquarters in Riyadh. The signing line names Abu Dhabi.

1.3 What does the charter aim to do?

Article 4 sets the objectives. The first is coordination, integration and interconnection among the member states in all fields, leading to their unity. Another is to adopt unified regulations in these areas:

  • Economic and financial affairs
  • Trade, customs and transportation
  • Educational and cultural affairs
  • Social and health affairs
  • Media and tourism
  • Legislative and administrative affairs

The preamble says the states are bound by special bonds, common characteristics and similar systems. It says all of these are rooted in Islamic faith.

True or false: Iran is a member of the GCC.
2

Why it formed in 1981

2.1 What was happening around the Gulf?

Two events set the scene. Britannica dates the Iranian Revolution from January 1978 to 1 April 1979. Britannica also says open warfare in the Iran-Iraq War began on 22 September 1980.

Arab News said in 2012 that the GCC was formed in May 1981 “against the backdrop of the revolution in Iran and the Iraq-Iran war”.

The GCC’s own 2009 book adds more detail.

It says the war was in its first year when the council was set up. It says the war worried the Supreme Council from the first summit. It says the main aims in the 1980s were stability and security against the threats the war mainly posed.

Some notes call the GCC a “counterweight to Iran”. The sources we checked do not use that word. They speak of a backdrop of events. Use that wording in an answer.

2.2 What is the Peninsula Shield Force?

The Peninsula Shield Force is the GCC’s joint military force. Britannica says the GCC’s security policies included creating it in 1984, as a joint military venture based in Saudi Arabia.

Arab News said in 2021 that the GCC established it in 1984 to deter and respond to aggression against member states.

Its first significant deployment was in Bahrain in 2011, says Britannica. Arab News of 2012 dates the deployment to March 2011.

The year needs care. The GCC’s 2009 book says the decision to form the Al-Jazeerah Shield Force was issued on 10 October 1982. Arab News said in 2012 that the force was set up in 1984.

Our own reading: 1982 was the decision and 1984 was the setting up. Answer 1984 if an exam asks when it was created.

Think it through: Why do both 1982 and 1984 appear in the sources?

One date marks the decision to form the force. The other marks its creation. Check which event a question means.

True or false: The Peninsula Shield Force is the military arm of the GCC.
3

How the GCC is organised

3.1 What are the three main organs?

Article 6 names the main organs. They are the Supreme Council, the Ministerial Council and the Secretariat General. The Supreme Council also oversees the Dispute Settlement Commission.

The main organs under the GCC CharterSupreme CouncilHeads of state. Once a year.Dispute SettlementCommissionMinisterial CouncilForeign ministers. Every 3 months.Secretariat GeneralHeaded by the Secretary-General.Charter Articles 6 to 15. The Supreme Council appoints the Secretary-General.Original chart. It shows reporting lines only as our own simple drawing.
Original chart of the organs named in Article 6 of the charter. The lines are only for the drawing.

3.2 What does the Supreme Council do?

Article 7 calls it the highest authority of the GCC. It is made up of the heads of the member states. Its presidency rotates alphabetically. It meets in regular session once a year.

Article 8 gives it these tasks:

  • Setting the general policy and basic guidelines of the GCC.
  • Appointing the Secretary-General.
  • Ratifying the budget of the Secretariat General.

Article 9 gives each member one vote. Decisions on substantive matters need the unanimous approval of the participating members. Decisions on procedural matters are made by majority vote.

An older MEA note says resolutions are carried by majority vote. The charter text is more exact, so follow it. Majority is enough only for procedure.

3.3 What does the Ministerial Council do?

Article 11 says it consists of the foreign ministers of the member states, or their representatives. It meets every three months.

Article 12 lists its work. It proposes policies and makes recommendations. It prepares the Supreme Council’s meetings and sets their agenda.

Think it through: Which body is higher, the Supreme Council or the Ministerial Council?

The Supreme Council. Article 7 calls it the highest authority. The Ministerial Council prepares its meetings.

3.4 Who runs the Secretariat, and who pays for it?

Article 14 says the Supreme Council appoints the Secretary-General. This person must be a national of a member state. The term is three years, renewable once.

Article 15 gives the Secretariat its work: reports, follow-up of decisions, and budgets and accounts. Article 18 says member states contribute equally to the budget. Article 10 says the Supreme Council forms a Dispute Settlement Commission case by case, depending on the nature of the dispute.

True or false: The Ministerial Council is the highest authority of the GCC.

Good to Know · Money, strains and India

4

Economic unity so far

4.1 Where did economic unity begin?

The GCC’s 2009 book says a Free Trade Area ran for almost twenty years, until the end of 2002.

A free trade area is a group of countries that cut tariffs among themselves. The book says trade among the six rose from less than USD 6 billion in 1983 to some USD 20 billion in 2002.

4.2 What are the steps, in order?

Steps of GCC economic unity
StepDateWhat the sources say
Free Trade Area1983 to end of 2002Replaced by the customs union (GCC 2009 book).
Customs UnionLaunched 1 January 2003Based on a common external tariff (GCC 2009 book). Fully operational from 1 January 2015 (The Peninsula).
Common Market1 January 2008Citizens get the same rights and entitlements in each country (IMF).
Monetary Union AgreementDecember 2008Approved. A single currency was planned for 2010 (GCC 2009 book).
Monetary council2009Set up, but the currency aim saw little movement (Britannica).
Value-added tax (VAT)From 2018Members began rolling out a 5 percent VAT (Britannica).

A common external tariff means every member charges the same duty on imports from outside the group.

The customs union needs a clear picture. The Parliament of Australia says it was formally implemented on 1 January 2003, under a Supreme Council decision of December 2001.

The Peninsula, a Qatar newspaper, reported on 3 January 2015 that it became fully operational from 1 January. It said full implementation took 12 years.

Britannica says a customs union was implemented in 2015. The sources fit together. The launch was in 2003, and full operation came in 2015.

4.3 Is there a single currency?

Britannica says an agreement to launch a single currency, like the euro, by 2010 saw little movement beyond a monetary council in 2009. We found no source that reports a launch.

An older MEA note says Saudi Arabia, Kuwait, Qatar and Bahrain ratified the monetary union. It says Oman opted out in 2006 and the UAE in May 2009.

A common slip is to mix up the steps. A customs union is about duties on goods. A common market is about citizens’ rights. A monetary union is about the currency.

True or false: The GCC already has a single currency.
5

Strains inside the GCC

5.1 What was the 2017 blockade of Qatar?

Britannica says Egypt and fellow GCC members Saudi Arabia, the UAE and Bahrain instated a blockade against Qatar in 2017. Egypt is not a GCC member. The other three are.

So the GCC faced a rift among its own members. A blockade is an attempt to cut a country off from trade and travel.

5.2 How did it end?

Britannica says the blockade was lifted at the next annual summit, held in January 2021, with Qatar’s emir in attendance. The Associated Press reported on 5 January 2021 that the emir arrived in Al-Ula, Saudi Arabia, for the annual summit of Gulf Arab leaders.

Think it through: Why does a rift among members matter for an economic bloc?

Joint steps such as the Supreme Council’s yearly summit need all members at the table. Article 9 also needs unanimity on substantive matters.

6

Why India cares

6.1 How big is India-GCC trade?

The MEA says India-GCC bilateral trade in FY 2024-25 reached USD 178.56 billion. Exports were USD 56.87 billion and imports USD 121.68 billion. That was 15.42% of India’s global trade. The Press Information Bureau (PIB) calls the GCC India’s largest trading partner bloc.

A bloc is a group of countries acting together. “Largest trading partner bloc” means the group as a whole. It does not mean one country.

The MEA says the UAE is India’s largest GCC trade partner and Saudi Arabia is second. MEA, quoted by the Economic Times on 26 September 2026, put trade in FY 2025-26 at USD 178.66 billion.

India-GCC total trade (USD billion)2021-22154.62022-23184.552023-24161.592024-25178.56Original diagram (bar length to scale). Totals from the MEA table, India and GCC note of 31 May 2026.
Original diagram of the totals in the MEA table. Gold marks the 2024-25 total used in the PIB statement.

6.2 Who else is tied to the Gulf?

The MEA says close to 10 million Indians live in GCC countries. It says their remittances were almost 38% of all remittances India received in FY 2024-25. A remittance is money sent home by a person working abroad.

The MEA also calls the GCC India’s “extended” neighbourhood. It says the region’s oil and gas reserves matter greatly for India’s energy security.

PIB gives more figures:

  • The GCC market had 61.5 million people in 2024.
  • Its GDP at current prices was USD 2.3 trillion, ranking 9th globally.
  • It is a significant source of FDI for India, with cumulative investments above USD 31.14 billion as on September 2025.

FDI means foreign direct investment, which is money put into businesses in another country.

6.3 How did formal dialogue grow?

The MEA says the first India-GCC Political Dialogue was held on 26 September 2003, on the sidelines of the United Nations General Assembly. The first India-GCC Joint Ministerial Meeting for Strategic Dialogue followed on 9 September 2024 in Riyadh.

The MEA says it was the first meeting between India and the GCC at foreign minister level. The foreign ministers of all GCC countries attended. It adopted a Joint Action Plan for 2024-2028.

India's External Affairs Minister at the opening session of the India-GCC Joint Ministerial Meeting in Riyadh, 9 September 2024
External Affairs Minister Dr. S. Jaishankar at the inaugural session of India-Gulf Cooperation Council Joint Ministerial Meeting on 9 September 2024. Credit: Ministry of External Affairs, Government of India. Licence: GODL-India, via Wikimedia Commons. Resized.

Current Affairs · India-GCC in 2026

7

India-GCC FTA talks

7.1 How did the talks begin?

PIB says the Terms of Reference for the FTA were signed on 5 February 2026. The GCC Secretariat says the Joint Statement was signed on Tuesday, 24 February 2026, in New Delhi.

PIB names Piyush Goyal and Jasem Albudaiwi as the signatories. It says the statement formally launched the negotiations.

The GCC Secretariat says the Terms of Reference cover these areas:

  • Trade in goods
  • Customs procedures
  • Trade in services
  • Digital trade
  • Sanitary and phytosanitary (SPS) measures, which cover food safety and plant and animal health
  • Intellectual property rights, and cooperation on micro, small and medium enterprises

It said it was ready to host the first round at its Riyadh headquarters in the second half of 2026.

7.2 Why did the talks slow down?

These are dated snapshots, each from a named source:

  • 17 March 2026: Moneycontrol quoted an official who said talks would come only in the second half of 2026. One reason given was the West Asia crisis.
  • 30 June 2026: The Economic Times reported Piyush Goyal saying talks with the GCC bloc were “temporarily stalled”.
  • 25 September 2026: Business Today reported Goyal saying the first round with the GCC was scheduled for October.

The three reports do not clash. They were made on different dates by different speakers.

7.3 What happened in New York on 25 September 2026?

The GCC Secretariat says the 2nd GCC-India Joint Ministerial Meeting took place on Friday, 25 September 2026. It was held on the sidelines of the 81st UN General Assembly. The Economic Times, quoting ANI, calls it a Troika Ministerial Meeting. It says the meeting reviewed the Joint Action Plan.

ANI reported that the leaders welcomed the launch of FTA negotiations. It also reported that Jaishankar thanked the GCC countries for the energy and fertiliser they supplied. He said this came despite trade-route disruption during the recent conflict in West Asia.

The GCC Secretary-General spoke of Iranian attacks on GCC member states since 28 February 2026. He noted the disruption of navigation in the Strait of Hormuz. These are his words, as reported by the GCC.

Think it through: In June the talks were “stalled” and in September a round was “scheduled”. Is this a conflict?

No. These are reports from different dates. Treat each as a snapshot and name the date when you write an answer.

True or false: India and the GCC launched FTA negotiations through a Joint Statement signed on 24 February 2026.
8

Who leads the GCC

8.1 Who is the Secretary-General?

The GCC site names Jasem Mohamed Albudaiwi, of Kuwait, as Secretary-General. Its page gives the date of assuming the position as 2/1/2023. We read this as 1 February 2023. That matches the three-year term that the renewal below counts from 1 February 2026.

8.2 Was his term renewed?

Yes. The 45th session of the Supreme Council met in Kuwait on 1 December 2024. It decided to renew his appointment for another three years, starting 1 February 2026.

Article 14 says the term is three years, renewable once. Our own reading: this decision is that one renewal.

A common slip is to mix the Secretary-General with the Supreme Council’s presidency. The presidency rotates alphabetically among member states. The Secretary-General is appointed.

True or false: The GCC Secretary-General's term was renewed for three years from 1 February 2026.

Exam Practice

9

What the exams asked

9.1 What did CDS (I) 2021 ask?

UPSC CDS (I) 2021, General Knowledge, Q87. Peninsula Shield Force is a military arm of

(a) Organization of Islamic Cooperation
(b) Organization of the Petroleum Exporting Countries
(c) Gulf Cooperation Council
(d) Arab League

The answer is the Gulf Cooperation Council. UPSC’s official key for this paper (Series A) gives option (c) for Q87. Britannica and Arab News also describe the force as a GCC venture.

9.2 What did UPSC Civil Services ask in 2016?

UPSC Civil Services (Preliminary) 2016, General Studies Paper I, Q70. Which of the following is not a member of ‘Gulf Cooperation Council’?

(a) Iran
(b) Saudi Arabia
(c) Oman
(d) Kuwait

The answer is Iran. UPSC’s official key for this paper (Series A) gives option (a) for Q70. The charter lists Saudi Arabia, Oman and Kuwait among the six signatories.

9.3 Which traps repeat in this topic?

  • Membership. Iran and Iraq are not in the charter’s list of six.
  • Place. The charter was signed in Abu Dhabi. The headquarters is in Riyadh.
  • Bodies. The Supreme Council is the highest authority. The Ministerial Council meets every three months.
  • Peninsula Shield. The decision was dated 1982 by the GCC. The force was created in 1984, say Britannica and Arab News.
  • Economic steps. The customs union was launched in January 2003 and fully operational in 2015. The common market began in January 2008. There is no single currency.
  • India. The GCC is India’s largest trading partner bloc, not a single country.
  • Secretary-General. Appointed for three years, renewable once. Not the same as the rotating presidency.

Remember this

  • Members: Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman. Not Iran or Iraq.
  • Charter: signed in Abu Dhabi on 25 May 1981. Headquarters in Riyadh (Article 2).
  • Backdrop: the Iranian Revolution (to 1 April 1979) and the Iran-Iraq War (open warfare from 22 September 1980).
  • Peninsula Shield Force: decision dated 1982 by the GCC; created in 1984 (Britannica).
  • Organs: Supreme Council (highest, once a year), Ministerial Council (every three months), Secretariat General.
  • Economic unity: customs union January 2003, common market January 2008, Monetary Union Agreement December 2008. No single currency.
  • India: USD 178.56 billion trade in FY 2024-25. Close to 10 million Indians. FTA Joint Statement on 24 February 2026.
  • Secretary-General: Jasem Mohamed Albudaiwi, renewed for three years from 1 February 2026.

Explain it back: Say in your own words why the Supreme Council, and not the Ministerial Council, is called the highest authority. Then say why the charter’s place of signing differs from the headquarters.

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MCQ on Gulf Cooperation Council (GCC)

Try 7 practice questions on the members, the organs, economic unity and India-GCC ties.

🎲 More International Relations Practice

0 of 7 answered

Question 1 of 7

Which of the following is not a member of the ‘Gulf Cooperation Council’?

Question 2 of 7

According to Article 11 of the GCC Charter, how often does the Ministerial Council hold its meetings?

Question 3 of 7

In which year did the GCC create the Peninsula Shield Force, according to Britannica and Arab News?

Question 4 of 7

Under Article 14 of the GCC Charter, how is the Secretary-General’s term described?

Question 5 of 7

According to the MEA and PIB, what was India-GCC bilateral trade in FY 2024-25?

Question 6 of 7

On which date was the India-GCC Joint Statement that formally launched FTA negotiations signed in New Delhi?

Question 7 of 7

On which date was the GCC Customs Union launched, according to the GCC and the Parliament of Australia?
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