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UAE Plans to Join the Move for a Single Currency in the Gulf

UAE : 06 December 2010

The UAE has plans to rejoin a movement towards a single currency in the Gulf according to statements made by the Emirate’s Minister of the Economy prior to a summit of Gulf leaders soon to be held.

The Gulf rulers are set to meet in Abu Dhabi this week on December 6-7 with plans set for discussions around the security issues, political and financial matters between the leading global oil exporters.

Sultan bin Saeed Al-Mansouri stated that the UAE is holding out hope for a future single currency among the GCC member states.

The UAE is the second largest economy in the Arab world behind Saudi Arabia and actually pulled out of a single currency project in 2009.  The objections surrounded the placement of a joint monetary council in the larger Saudi Arabia and the UAE would not support the policies unless there was profit to be had for the Emirates.

Oman, a neighbor of the UAE and not an OPEC member, also backed out of the talks in 2006 and have discounted any chances of rejoining.

Four of the states in the six-member GCC have continued in their commitment to the monetary merger, but Kuwait, Bahrain, Qatar and Saudi Arabia have not made much progress in 2010 as the debt problems in the European Union have been disheartening.

Al-Mansouri stated that a mutual agreement between all of the GCC member states was the goal and also noted that the merger would be discussed at the soon-to-be-held summit.

The UAE believes that the economic, political and social common bonds in the Gulf region are where the future of the Emirates is.

The secretary general of the GCC stated back in May that a single currency launch is not likely to be seen until 2015, after the initial target of 2010 has nearly passed.

Saudi Arabia, the leading global oil exporter, is thought to be pushing for the monetary merger the most.  However, the Kingdom has also been challenged by the rising economic powers of the other crude exporting nations in the GCC.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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