Overview
The Gulf Cooperation Council and the Association of Southeast Asian Nations represent two important regional economic groupings that Oman interacts with. Comparing their trade structures illuminates Oman’s strategic positioning between Middle Eastern and Asian markets.
GCC Trade Bloc
The GCC comprises six member states with a combined GDP of approximately USD 2 trillion. Intra-GCC trade is relatively low at around 10 percent of total trade, reflecting similar export profiles dominated by hydrocarbons. The GCC Customs Union, established in 2003, has achieved partial tariff harmonisation, but non-tariff barriers persist. A common market remains aspirational rather than fully realised.
ASEAN Trade Bloc
ASEAN’s ten member states have a combined GDP exceeding USD 3.6 trillion and a population of 680 million. Intra-ASEAN trade accounts for roughly 22 percent of total trade, driven by integrated manufacturing supply chains. The ASEAN Economic Community has made significant progress on tariff elimination, and RCEP has further integrated ASEAN into the Asia-Pacific trade architecture.
Key Differences
ASEAN is more economically diverse and has achieved deeper trade integration than the GCC. The GCC’s similar export profiles limit intra-bloc trade potential, whereas ASEAN members have complementary economies. ASEAN’s larger population creates a bigger consumer market. The GCC has higher per capita income but a smaller aggregate market.
Verdict / Bottom Line
For Oman, both blocs matter. Deepening GCC integration would benefit Oman’s services and manufacturing exports, while expanding ties with ASEAN, particularly through the Oman-ASEAN trade corridor via Indian Ocean shipping, aligns with logistics and diversification goals. Oman should pursue dual engagement rather than prioritising one bloc over the other.