The member states of the Gulf Cooperation Council (GCC), namely; the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar, the Kingdom of Saudi Arabia and the United Arab Emirates (UAE) have been moving towards more economic integration while taking practical steps in the direction of market opening and liberalisation. Over the past ten years, the GCC has evolved into a more integrated economic zone with agreed common policies that are coordinated through its Secretariat. With respect to service utilities, the GCC Interconnection Grid – nearing completion in 2011 – is considered a milestone in the direction of integrating GCC electricity markets. The objective of this research is to suggest a GCC-wide policy to support reform of GCC electricity markets. The suggested policy would include new market structure(s) as well as institutional changes supported - when required - by sector specific laws and regulations. Further to the study’s academic contributions, the research is primarily intended to advance the further development of the economies of GCC member states. The study presents a model that we believe could contribute to expediting the process of developing the GCC zone as a common market by advising policy makers on the applicable elements of GCC electricity market structure, governance and performance. This study provides a comprehensive review of the theoretical aspects of electricity sector restructuring and examines different options for reform and restructuring based on worldwide experiences. The study adopts a case study research method to analyse the GCC situation in order to arrive at the recommended policy or ‘model’. The research specifically emphasises reforms that have already taken place in the Sultanate of Oman – for which an empirical social cost benefit analysis is carried out - and the Emirate of Abu Dhabi (UAE). Oman and Abu Dhabi are believed to be at more advanced stages of electricity market reform compared to other countries within the region.

The member states of the Gulf Cooperation Council (GCC), namely; the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar, the Kingdom of Saudi Arabia and the United Arab Emirates (UAE) have been moving towards more economic integration while taking practical steps in t...