The impact of GCC integration on the economy of Oman: An empirical study of the attitudes of the business community to the customs union.

Abstract

The aim of this study is to investigate representative views and perceptions of relevant elites regarding the state of GCC integration, the effect of the decision to move to a customs union, and the effects on Oman's economy and trade with the GCC. In particular, the views were explored on whether the Customs Union decisions could contribute to removing tariff and non-tariff impediments that prevent the free movement of goods between the participant countries. Also, how such steps in particular, will help the Sultanate of Oman to overcome its economic and trading challenges in its trading relations with the GCC countries. The questionnaire method for data collection was used in this study by conducting a survey with Omani businessmen to find out their attitudes to some of the GCC economic integration issues. In addition, a focus group interview method was used with some Omani senior officials to obtain their views about a number of GCC economic integration problems, and to explore to what extent the official view coincided with that of the private sector. The study revealed the positive perception of Omani businessmen towards GCC economic integration. It also showed that the majority of them believe that the founding of a customs union will help to eliminate all the obstacles hindering GCC intra-trade. The findings show that most Omani businessmen prefer to attribute the reasons for importing from a number of markets of GCC countries to more than one factor, such as the huge markets of the neighbouring countries, the lack of information about international markets, the ease of mutual understanding and payment facilities and the absence of customs land border controls inside these neighbouring countries.