After 1979, the relatively newly formed Arab Gulf, found their existence being put into a direct test. Due to the geopolitical closeness and their economically strategic location, the Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, Kingdom of Saudi Arabia and the United Arab Emirates sought out a protective counter-alliance.
Thus in February 1981, during a meeting in Riyadh, Saudi Arabia, the Foreign Ministers of the countries in the Arabian Peninsula set forth the essential mechanisms for putting together a co-operative council.
In May of the same year in Muscat, Oman the AGCC was formally established with its general secretariat head quart in Riyadh.
The AGCC is an all encompassing organization covering mutual areas endorsed within the Charter. However, it is not surprising that it is within the spheres of trade and economy that the AGCC Partnership has set most of its enduring strengths as embodied in the Unified Economic Agreement Between Countries of the Gulf Cooperation Council agreement.
The most recent achievement has been the establishment of the GCC Customs Union on 1st January 2003, two years earlier than initially planned. The AGCC is a well structured and organized institution. At the top of the pyramid is the Supreme Council which consists of the Heads of States of the member countries.
Under normal circumstances they meet once a year. The Supreme Council is supported by Consultative Commission which executes the works delegated to it by the Supreme Council.