Gulf countries need to move forward together in critical areas

The GCC summit to be held in Doha in December will have many economic and political topics on its agenda.

Most important to GCC citizens is the economic agenda, as it is directly related to their standard of living, investment opportunities and the competitive future under globalisation.

This agenda has many important topics, such as the implementation of the common market early in 2008, launching the single currency in 2010 and developing the work mechanism of the customs federation, in addition to the issues of education, environment and energy.

In the first few years of the GCC's life, many decisions were taken that cemented the relationships and helped merge the region's economies.

Achievements were made in many sectors, especially in setting up the Free Trade Zone in 1983, opening up various professional fields for GCC citizens in all Gulf countries and allowing property ownership. Lately, it has become noticeable that the implementation of many summit decisions was postponed, such as the customs tariff.

The opening of branches of national banks in GCC countries has also been delayed for eight years, and so is allowing all national investors to deal in GCC bourses.

Laws were issued in all GCC countries to put these decisions into effect in line with the current status of international economy, since countries around the world are trying to liberate the service sector, including banking and financial services, which were included in the World Trade Organisation session held in Doha.

The main point is that many decisions were postponed in the past years, and this may extend to include issuing the single GCC currency in 2010.

Instead of postponing the single currency, a decision can be reached to issue the single currency on schedule, while allowing concerned countries five or seven years to adjust their status and join later.

Provided that it is pegged to a currency basket, the single currency can be launched by three or four countries, especially now that the economies of the UAE, Qatar, Bahrain and to some extent Saudi Arabia are ready for this step for economic and technical considerations.

Then, steps may be taken to implement the programme of GCC countries to achieve integration of GCC economies and keep up with global openness.

Legitimate way

This would also be a legitimate way out of the restrictions of unanimity, which is one of the principles of the GCC's statute.

A problem which must be addressed is the variation between the increasing speed of global cooperation within the framework of international organisations and the humble speed of cooperation between GCC countries.

GCC work is in need of leap that meets the demands of globalisation. This in turn would lead to facilitating the move of capital and enhances financial and monetary situations in GCC countries.

The smooth capital flow was not available when the GCC was established in 1981, whereas Europe realised such changes before anyone else.

For example, Airbus merged the expertise and industrial experience of the French, British and German aviation industries, to become the world's leading aviation company within a short span of time, surpassing its competitor, Boeing.

This would not have been possible for a single European country, until the Euro was launched to enhance Europe's position in global economy. These are the rules and tools of new economic competitiveness in the world, on which the success of countries and groups in digital economy is based.

The writer is a UAE economic expert.

Provided that it is pegged to a currency basket, the single currency can be launched by three or four countries.