European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.12, No.6, 2020 113 Jordan bid to the Gulf Cooperation Council and Implications for the Expended GCC Shabir Mohsin Hashmi 1 , Zhao Yongliang 2 , Zainab Alhayki 3 1*Professor and Director, Belt and Road Research Centre, School of Economics and Management, Yancheng Institute of Technology, Yancheng, Jiangsu, China, Postal Code: 224051, E-mail: hashmi@ycit.edu.cn 2*Professor, Dean, School of Economics and Management, Yancheng Institute of Technology, Yancheng, China, Postal Code: 224051. E-mail: everbrightz@163.com (Corresponding author) 3*Zainab Alhayki, Assistant Professor, Finance Department, Alasala College, Kingdom of Saudi Arabia, Email: zainab.alhayki@alasala.edu.sa Abstract In 2011, the Gulf Cooperation council (GCC) invited Jordan and Morocco to join the council. This research is geared to evaluate the potential benefits of joining the GCC for the case of Jordan. It is argued that Jordan’s inclusion to the block would strengthen the economy of the member states, increase trade and investment opportunities and improve peace in the region. GCC Membership to Jordan might possibly support its economy and larger investment flows from the Gulf countries. On the flipside, Jordan accession carries several potential benefits to the GCC. Jordan’s strength is linked with its close proximity to the GCC, cordial relationships with the US and the EU and free trade agreements with major economies. Moreover, Jordan inherits professional military. If Jordan is part of the GCC, it might consolidate the military power and augment security of the GCC. Since the Arab Spring, the peace of the Middle East remained volatile. Recent rift between Saudi Arabia and Qatar, war in Syria and Yemen further destabilized the security of the region. This has also undermined the future of the GCC. In these circumstances, the expansion of the GCC is realistic and Jordan case caries some merit. Keywords: GCC, Jordan, Economic Integration, Peace and Security JEL: E61, F36, F50, F53, F59 DOI: 10.7176/EJBM/12-6-14 Publication date: February 29 th 2020 1. Introduction The Gulf Cooperation Council (GCC) was founded in 1980.It is intergovernmental regional economic and political cartel of six Arab States of the Persian Gulf. Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and United Arab Emirates are its member. The main objectives of the GCC are to promote the socio-economic conditions of region and safeguard the sovereignty of the member states. In 2011, Saudi Arabia put forwarded a proposal to transform the GCC into a Gulf Union with closer economic, political and military coordination. Apart from economic cooperation, the prime goal of the GCC is to contain the influence of Iran in the Middle East 1 .The expansion of the GCC has been on the card since log ago. But after the Arab Spring, there has been serious discussion regarding the future membership to Jordan, Morocco and Yemen. Jordan shown it’s interested in joining the Gulf Cooperation from the foundation of the club and again it made a request in1996. On 10 th of May 2011, during its meeting in Riyadh, the Gulf Cooperation Council (GCC) invited Jordan and Morocco to join the council. The Kuwait Times reported that Jordan bid to the GCC is warmly welcomed by the Kingdom of Bahrain and Saudi Arabia, while, Kuwait and Qatar expressed their reservations. It is argued that the Jordan accession to the council will not only enhance trade and investment opportunities but it will also reinforce the historical ties between the Arab countries. Since 2000, Jordan’s per capita GDP has more than doubled and GDP grew around 8 per cent per annum. During financial crisis, the growth rate of Jordan declined but it has registered a positive recovery in the recent years .According to the IMF forecasts, the economy of Jordan is likely to grow 3.2 in 2019 and above 3 per cent for the next coming five years. Over the years, unemployment has remained a major problem to the Jordanian economy. In 2018, unemployment rate in Jordan was 13 per cent which is expected to slide a bit to 11.5 per cent in 2019. The unemployment will edge downward as the economy picks up the momentum, nevertheless, the rate will remain in double digits for the next couple of years, the IMF asserts in its forecast for Jordan. Over the past couple of years, Jordan has signed free trade agreements with a number of countries including the U.S and the European Union, Bahrain, Canada, Egypt, Malaysia, Morocco, Singapore, Syria, Tunisia and the UAE. GCC is one of the major trading partners of Jordan. During last decade, bilateral trade between the GCC and Jordan has increased immensely. Among the GCC, Saudi Arabia is the top trading partner to Jordan. Saudi Arabia which supplies crude oil to Jordan topped the list of exporters, followed by China and the United States. This study is designed to understand the current realties of Jordan and the GCC relations in the economic and political areas so 1 Andrew Hammond (2012). "Analysis: Saudi Gulf union plan stumbles as wary leaders seek detail".Reuters