Look: When GCC was born in Abu Dhabi 44 years ago after two-day summit
The six leaders who attended the summit were King Khaled Ibn Abdelaziz of Saudi Arabia, Sultan Qaboos bin Said of Oman, Sheikh Jaber Al Ahmed Al Sabah of Kuwait, Sheikh Isa bin Salman Al Khalifa of Bahrain, Sheikh Khalfia bin Hamad Al Thani of Qatar and President Sheikh Zayed bin Sultan Al Nahyan of the UAE.
Chedli Klibi, then secretary general of the Arab League, and Habib Chatti, then secretary general of the Islamic Conference Organisation, also attended and addressed the meeting.
As reported by Khaleej Times, Sheikh Zayed described the event as a historic and momentous occasion. The UAE founding father saw in the formation of GCC 'the fulfilment of long-cherished hope of the peoples of the region for security, stability and progress.'
He told the plenary session of the summit that the GCC would help unify the Arab world and promote solidarity.
The charter of the GCC was first agreed upon in Riyadh in February 1981. It was finalised in Muscat in March of the same year. The heads of the six Gulf states signed it with a vision that the six countries would coordinate their policies in financial affairs, trade, communications, education, culture, health, social affairs, information and tourism, and in administrative and legislative affairs.
The leaders agreed to mobilise their resources and human and material infrastructure to push the GCC towards success. The GCC charter also stipulates that the six states would jointly step up cooperation in the fields of scientific and technological advancement, industry, mining and agriculture.
The GCC is headed by a Supreme Council of the six heads of state. The ministerial council and secretariat are led by the secretary-general. Kuwait's former UN ambassador Abdullah Yacoub Bishara was nominated as the first secretary-general.
Leaders of the Arab World welcomed the formation of the GCC. Klibi lauded the role played by Sheikh Zayed in the formation of the council and in supporting the cause of the Arab world. He also underscored the continuing call for united efforts on the economic, political, technological and military fronts.
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Renovation over new builds Given today's construction costs, Crompton believes that repurposing existing buildings is the quickest path to impact. 'Developers face a big issue; most of the profit is in the more expensive projects. Given the price of construction — even with cheap land — it is hard to develop affordable housing. More sensible options would be to renovate older stock and make [it] friendly to those in multiple occupations.' This approach addresses urgent affordability concerns while supporting sustainable urban renewal. Nonetheless, not all new arrivals will strain the affordable segment. 'Given that one of the major population drivers in Abu Dhabi is the ADGM on Maryah Island and the huge number of hedge funds and asset managers relocating there, we expect to see a larger emphasis on luxury real estate than might otherwise be the case." Furthermore, limited new delivery will push up rents and prices. According to most reports only about 3,000 units were delivered in 2024; 'couple that with an increase in population of 300,000 — that is 100 new entrants per unit. Pressure on prices is inevitable.' On whether new mega‑projects drive population growth, Crompton said their role is more about attraction than generation. 'I don't believe that building real estate has much of an effect on population by itself, outside of the people hired in to work for developers and construction companies.' However, assets like the Guggenheim and the Disney theme park make Abu Dhabi more attractive to people who can choose where they want to live. 'Most new arrivals will be coming to work in the thriving economy, but a small number have independent means or can work remotely and they are drawn by these signature developments.' Suburban and satellite communities being on the rise will push development further afield. 'There needs to be more development outside the current corridors across Reem and the Northern Islands,' he said. 'Broad‑based demand will mean people looking for more affordable options and these will necessarily be further out.' Crompton noted that growing populations underpin market confidence: 'Population growth means increases in rents which by itself drives investor sentiment. If you are buying property as an asset you need returns, and rents bring those,' he explained. 'Also, the more people coming into the emirate means more potential buyers, and demand improves prices.' He cautioned that matching supply to demand is inherently difficult. 'Being a developer is a very tricky occupation. Launch to handover is at best two and a half years and that doesn't include the planning phase. It will be very hard for developers to accurately gauge demand three years into the future, and the difficulty in doing this is one of the reasons why countries generally often over‑ and under‑build for their populations.' Finally, Crompton noted little current policy emphasis on budget‑friendly segments; 'there doesn't seem to be this focus currently. Most developer launches are in the upper mid‑market range to super‑luxury. Launches in the Dh10,000 per square metre and below ranges are very rare.'
