Gulf Arab states to launch monetary council next year

Riyadh: Gulf Arab states are poised to launch a common monetary council, the precursor to a regional central bank, in 2009, the head of the Gulf Cooperation Council (GCC) said in remarks published on Tuesday.

"We look forward to set up the monetary council of the Gulf Cooperation states next year," GCC Secretary-General Abdul Rahman Al Attiyah told Al Hayat newspaper.

The GCC - a loose political and economic alliance that comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - launched monetary union plans in 2001 but setbacks have since dogged the project.

Oman out

Oman has opted out of the planned monetary union.

Leaders of the oil-producing nations are expected to approve a monetary union agreement and a monetary council charter when they meet in Oman later this month.

The GCC plans to have a joint Gulf Arab central bank that will be independent from the governments of its member countries.

The joint central bank would be preceded by a joint monetary council to help the transition, although the draft did not give a specific time frame.