The CAEU was created in 1964 to implement the Arab Economic Unity Agreement (AEUA) form amongst the states of the Arab League in 1957. The AEUA stipulates the following rights on equal basis to the member states and their citizens:

• Freedom of movements of individuals and capital.
• Freedom of exchange of domestic and foreign goods.
• Freedom of residence, work employment, and practicing economic activities.
• Freedom of transport, transit, and civil airport facilities.
• Freedom of ownership, bequeath and inheritance

 

The ultimate goal of the CAEU is to achieve complete economic unity among the member states. The objectives of the CAEU are:

• To formulate regulations, legislations, and tariffs, aiming at the creation of a unified Arab custom area.
• To co-ordinate foreign trade policies with a view to ensuring the co-ordination of the region's economy vis-à-vis world economy.
• To co-ordinate economic development and formulate programs for the attainment of joint Arab development project.
• To co-ordinate policies related to agriculture, industry, and internal trade.
• To co-ordinate financial and monetary policies with the aim of achieving monetary unity.
• To co-ordinate legislations for taxes and duties.
• To formulate unified regulations for transport and transit in the contracting countries.
• To draft common legislations on labour and social security.
• To prepare a budget for the CAEU council and its affiliated bodies.