Economic Policies and the Possibilities of Unified GCC Currency

The aim of this study is to identify the extent to which the GCC countries can adopt similar economic policies by the time of the formation of the GCC unified currency in 2010. Among many other convergence standards, the study suggests to examine the economic structure of the GCC countries to identify similarities. Estimating the model using SUR technique, the study finds significant differences between GCC countries economic policies. The results suggest that GCC countries need to grant more policy coordination to lessen the differences in order to facilitate better design of unified economic policies that are conducive to the establishment of a monetary union.