The GCC was established in 1981 and it includes six countries, namely, Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates (UAE). GCC countries share several common patterns. Together, they produce about 20% of all world oil, control 36% of world oil exports and possess 47% of proven reserves. Oil exports largely determine earnings, government budget revenues and expenditures and aggregate demand. Table 1 shows some key financial indicators for the GCC economies. The contributions of oil to GDP range from 22% in Bahrain to 44% in Saudi Arabia. Moreover, Table 1 indicates that for the three largest.
