Such an arrangement is not a new idea but was discussed extensively between leaders like King Faisal, Bhutto, Reza Shah, Gamal Nasir, Abdullah 1 etc. The objectives are obvious, we share socioeconomic, cultural, religious,historic and geographic basics. Such an arrangement will focus on economy, trade and freedom of movement between countries. All of these countries have extensive energy,scientific and human resources which cannot be said about one single country. It is a win win because the proposed, member states,need to become economically competitive to keep up with the rest of the world. Open borders means more public interaction means more peace between nations.Countries like these, if they merge their resources can become a force to be reckoned with. Strategic alignment of the region will shift, as China rises as the new superpower,India becomes a regional powerhouse and the United States becomes energy independent of the Middle East.
Last but not least, there is a security aspect to it as well, because all of these countries need credible security mechanism which can be mutually achieved by combining forces and perhaps creating a mini NATO, for regional security with Pakistan providing the nuclear umbrella, and getting its place and chunk of commerce in return. Turkey can become, what it wants to after the EU is kicking it out every time. Saudis will see end to their rivalry with Iran and Egypt would have an entire continent backing it up for its diplomacy with Israel. So its a win win for all of our nations, However there is one reason why it wont be achieved now, and that is the time slot until our middle eastern friends earn their democracy from these western installed tyrants. A true alliance can only be forged, when its rooted amongst the people and what better way to do it than doing it through a democratic system and that wont happen until all of the middle east is unable to kick out these dictators and become democracies. So its not a matter of IF but When.
Cheers.