Kuwait summit a landmark for GCC

The Gulf Cooperation Council (GCC) has inched closer towards integrating the financial systems of its member states by launching the Monetary Union, a precursor to the introduction of a single currency. This is a historic achievement despite the fact that the UAE and Oman have yet to join the agreement.

The GCC agreed in 2001 to create a shared currency which would help them integrate their economies and pursue an independent monetary policy. Oman pulled out of the process in 2007 and the UAE withdrew this year. Kuwait, which hosted yesterday's summit, said it hopes the countries will rejoin the project "in the near future". That is actually a challenge facing the organisation: to accommodate the demands and needs of the two countries.

Also there is a long road ahead towards full integration as Gulf officials said it might take "several years" before the single currency becomes a reality.

Nevertheless, the Kuwait summit has been a landmark meeting. Not only because of the endorsement of the Monetary Union, but also because it launched the much awaited pan-GCC railway project with the establishment of the Railway Authority.

In fact, the railway project could prove more important than Monetary Union. The railway was the key factor behind the unification of many countries, such as the US and Canada. It would have been impossible for those regions to integrate without the railway network.

The integration of the GCC will be faster and more realistic with the railway connecting the people of the six states, easing movement of passengers and goods and ultimately removing barriers.

The project is also proof that the GCC continues to be the most successful unity project in modern Arab history. It is hoped that these projects the railway, power grid, customs and Monetary Union will lead to the full integration of the bloc, which lies at the heart of a volatile region.