Abstract: The volatile security environment in the Gulf region underlines the necessity for the GCC countries to interact in an innovative way with their neighbors both to secure their neighborhood and to generate greater cooperation on their foreign policies. A Gulf Neighborhood Policy (GNP) would create a framework covering the structure and implementation of a range of policies defining bilateral and multilateral ties between the GCC states and selected partner states. In its bid to delineate the outlines of an effective GNP, this paper draws upon the lessons offered by the European Neighborhood Policy (ENP). Besides detailing the strengths and shortcomings of the European example, it also looks at how the EU and the GCC can cooperate to make an effective GNP possible. It describes how the GNP can be an efficient tool for the creation of a secure and economically strong neighborhood for the Gulf monarchies.