This research paper identifies the major environmental features of the GCC countries, as well as Yemen, in terms of habitats, species, and environmental quality. It also assesses the environmental status and the major environmental challenges facing the region. The Environmental Features component was drawn from the World Wildlife Fund's description of the terrestrial eco-regions of the geographical area examined for this study. Although primarily a political and economic organization, the GCC is important for environmental matters as well. The region is at the centre of many key geo-political issues of our time, from world energy strategy to societal changes. This socio-economic background did shape, and is still shaping, the region and has obvious consequences on the environment. The analysis revealed that the countries of the GCC and Yemen are facing numerous environmental challenges and have many conflicting priorities, from economic diversification, water supply and food security to environmental protection and conservation. However, the research finds that environmental issues and requirements are still not amply integrated in the long-term development planning of the region, nor are they addressed at the policies level.