Four Gulf States Sign Deal On Monetary Union

"The Gulf Cooperation Council (GCC) took a major step towards a single currency union on Sunday when four members signed a pact to create a joint monetary council after years of hesitation. Foreign ministers from Bahrain, Kuwait, Qatar and Saudi Arabia agreed at a Riyadh meeting to set up the council, a precursor to the ultimate goal of establishing a common currency.... Foreign ministers from Oman and the United Arab Emirates also attended the meeting but refused to sign on...." [Agence France Presse (6/7)/Factiva]

Arab News writes that "... 'The GCC Monetary Council will manage the transition toward monetary union, which is targeted to be operational in 2013,' said a GCC spokesman, Abdelaziz Al-Uwaisheg on Sunday. The original target date for minting a common currency was 2010, but that was later postponed so that member states could have more time to work out differences....The agreement will still have to be ratified by each of the four GCC governments of the remaining participants before it can be enacted...." [Arab News (Saudi Arabia, 6/8)/Factiva]

FT reports that "...the UAE withdrew from the proposed monetary union and plans for regional economic integration in May. It pulled out after Riyadh, the Saudi capital, was selected as the headquarters for the future regional central bank over Abu Dhabi, the capital of the UAE....Oman pulled out of plans for the monetary union in 2006...." [Financial Times (6/8)/Factiva]