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* Suspicion keeps region from building shield

* Gulf shield hoped to counter potential threat from Iran

* Shield is part of a broader U.S.-backed missile umbrella

By Mahmoud Habboush

ABU DHABI, April 30 (Reuters) – Distrust among Sunni Gulf

Arab states has scuppered the installation of a joint missile

shield which Washington has long urged as the best means of

defence against any strike by Iran.

The oil-exporting states have spent billions on U.S.-built

anti-missile platforms but have fallen short of building a

unified umbrella and an early warning system, despite their

expressed intention to do so.

Analysts say that although they belong to the same political

and military alliance, the six Gulf Cooperation Council

(GCC)members remain uneasy about sharing data. Nor can they

decide on the location of a central command and are struggling

to find ways to work together in case of an emergency.

“The question is not only about trust among Gulf states but

also trust in the Americans,” said Mustafa Alani, a Middle East

defence analyst. “The central command is going to be controlled

by a powerful state (Saudi Arabia) and the Americans and the

small states will be sandwiched between the two.”

U.S. officials say the missile shield is part of a global

plan that includes deployment of sea and land-based systems in

Europe, the Middle East and Asia to counter the threat of

ballistic missiles from states like Iran and North Korea.

Iran is at odds with its Gulf Arab neighbours and the West

over its nuclear programme. The United States and its allies say

Iran is seeking nuclear weapons capability under the cover of a

civil programme, which Tehran denies.

The Islamic state has threatened to target U.S. interests in

the Gulf, including military bases, and to block oil tanker

lanes in the Strait of Hormuz if it is attacked.

THORNY ISSUE

U.S. officials have been talking for years to the GCC

members – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the

United Arab Emirates – about building the shield but have done

so with more urgency in recent months.

The site of the central command room is a thorny issue

because the Gulf states have a long history of disaccord. In

2009, the UAE pulled out of a planned GCC monetary union after

Saudi Arabia was voted as the host of a common central bank.

Saudi Arabia also hosts the GCC headquarters.

“We have to have a location,” Lt Gen David Goldfein, the

U.S. Air Force commander for southwest Asia, told a security

conference in Abu Dhabi

The UAE and Saudi Arabia are likely to vie for hosting the

headquarters. Heavyweight Saudi Arabia is also home to the

Peninsula Shield, a GCC force set up in 1986 to defend Gulf

countries against any potential threat.

It has been called upon three times since its foundation –

in the 1990-91 Gulf War, during the U.S.-led invasion of Iraq in

2003 and in March 2011 when Saudi Arabia and the UAE sent 1,500

soldiers to Bahrain during anti-government Shi’ite protests.

Theodore Karasik, a Dubai-based security analyst, said the

UAE would be the favoured host because “this is where the push

for integration has started from.”

Experts suggest the best short-term solution is for Gulf

states to acquire compatible systems that can be, as one

official said, “plugged” together in case of emergencies.

But U.S. officials say a “plug and play” approach is too

risky, suggesting that it is no alternative to a central command

which allows for a much faster decision-making process.

In this case, commanders would be sitting in one room

controlling the entire network rather than having to coordinate

between six different commands.

Goldfein said that despite each country’s individual defence

plans and bilateral defence arrangements with the United States,

a multilateral security approach was still needed.

WARY OF INFORMATION SHARING

Analysts say the Gulf states are not only wary of sharing

information among themselves but also with the United States

because the oil exporters fear direct U.S. involvement in the

shield could mean that it would link its systems to GCC radars

without sharing back data collected by its own assets.

GCC Secretary-General Abdullatif al-Zayani was among those

at the Abu Dhabi conference who questioned the bloc’s dependence

on foreign allies, mainly the United States.

“What are the defence capabilities that the GCC needs to

become less dependent on their allies?” he asked.

Alani said another obstacle to regional cooperation was

related to finances and sovereignty.

“Many countries either don’t have the money or don’t want to

relinquish national control,” he said.

Smaller countries are concerned that states who would

contribute more to the system such as Saudi Arabia and the UAE

would have more control over it.

Despite a closing of ranks during the 1990-91 crisis over

Iraq’s invasion of Kuwait, Gulf states belonging to the

Saudi-dominated GCC have tended to guard their sovereignty

jealously.

Long-running border disputes have slowed security coordination.

“The GCC is overall a fractious organisation. They weren’t

able to agree on a common currency and it’s rare they have real

consensus among themselves,” Robert Jordan, the U.S. ambassador

to Riyadh from 2001-03, told Reuters.

“The Saudis are viewed by the others as the 800lb gorilla in

the region and are perceived to throw their weight about.”

Any pan-Gulf defence shield would have to be supervised by

the Americans, which makes some countries, especially Saudi

Arabia, have seconds thoughts about taking part, a Gulf-based

diplomat said.

“The Americans want the system for their own reasons and

defence assessment, but yet they want the Gulf to pay for it and

host it,” he said.

The missile defence buildup in the Gulf began under former

U.S. President George W. Bush and accelerated under President

Barack Obama, whose administration introduced tougher sanctions

against Iran.

A shared early warning system could be integrated with U.S.

Navy cruisers and destroyers equipped with the Aegis ballistic

missile defense system in offshore waters.

The Gulf states have individually acquired some advanced

defence systems, including the latest versions of the Patriot

Air and Missile Defense System. UAE has spent billions in recent

years to protect its cities and oil installations against

missile attacks.

The latest deal was signed in December with Lockheed Martin

Corp for a $3.6 billion Theater High Altitude Area

Defense (THAAD) – the only system designed to destroy short- and

intermediate-range ballistic missiles both inside and outside

the Earth’s atmosphere.

A company official told Reuters he expected other Gulf

states to buy the THAAD as a result of tensions with Iran.

Besides Lockheed Martin, the biggest U.S. missile defence

contractors include Boeing Co, Raytheon Co and

Northrop Grumman Corp. Even without a central command

system, much of the Gulf would be covered within a few years

with the deployment of new systems in the region.

(Writing by Mahmoud Habboush; Additional reporting by Raissa

Kasolowsky; Editing by Angus MacSwan)