Gulf monetary union pact comes into effect

Manama: Gulf Cooperation Council (GCC) leaders concluded their annual summit on Wednesday with an agreement on the monetary union, paving the way for a single currency.

The two-day summit, hosted by Kuwait, also supported Saudi Arabia in its fight against Yemen's Al Houthi group and called on Tehran to respond to the GCC's repeated calls to solve peacefully the issue of the three UAE islands occupied by Iran.

The monetary union will comprise four of the six GCC members. The UAE and Oman opted out of the agreement.

Under the pact, a Gulf monetary council is to be established early next year. The council will develop into a central bank, which will take the required measures to issue a single currency.

Steps

The summit's final communiqué said the leaders have asked the Monetary Council's board of directors to take all the necessary measures to issue the single currency. It did not set a timeline.

The leaders expressed confidence over the ability of their economies to overcome the impact of the global economic crisis. "The summit welcomes efforts taken by the member states to contain the impacts of the global economic crisis and expresses confidence in the strength of the Gulf economies to overcome the impacts of the crisis," the communiqué said.

Speaking at a joint press conference with Kuwaiti foreign minister Shaikh Mohammad Al Sabah, GCC Secretary-General Abdul Rahman Al Attiyah said the six states have agreed to create a joint force for rapid intervention to address security threats. The force would intervene in situations similar to the recent incursion by Yemen's Al Houthi rebels into Saudi Arabia.

Islands' issue: GCC reiterates support for UAE

The GCC on Tuesday also reiterated its full support to the UAE sovereignty over its three islands of Abu Mousa, the Greater and Lesser Tunbs and, their regional waters, air space, continental shelves and economic zone, saying they were an integral part of the UAE.

The communiqué issued at the end of the summit in Kuwait said that the leaders regretted the lack of positive results in the contacts with Iran that would lead to resolving the issue and consequently contribute to reinforcing peace and stability in the region.

The leaders nevertheless said that they would continue looking into all peaceful means that would allow the UAE to regain its rights over its three islands.

"The GCC leaders call upon Iran to respond to the UAE efforts to resolve the issue through direct negotiations or by taking the case to the International Court of Justice. The leaders request Iran to remain committed to the basic premises for establishing good neighbourly relations, mutual respect and non-interference in domestic affairs," the communiqué said.

Iran has consistently refused to take the case of the three islands to the Hague-based International Court of Justice.

The court cannot consider a case without the approval of both parties involved in the dispute.

Monetary Union milestones