GCC hopeful of UAE's participation in monetary union

Gulf oil producers are still hopeful the UAE will eventually join the monetary union they plan to launch, possibly next year, despite the country's decision last month to withdraw, a senior Gulf official said yesterday.

Four GCC states are going ahead with the launch despite UAE's and Oman's pullout. Their foreign ministers are scheduled to sign the pact this week, said Abdul Rahman bin Hamad Al Attiyah, GCC Secretary-General.

Quoted by Qatari papers, Attiyah said the four GCC nations would first enforce a common currency peg before they issue their own currency by the Gulf Monetary Council. He said the UAE had informed the GCC Secretariat that it would not be a party to the monetary union "at least for the time being. But the UAE remains committed to common GCC work as was illustrated by the memorandum I have received from the UAE Foreign Ministry. The UAE affirmed it will not hesitate in supporting the GCC joint action… We are counting much on the UAE and hope the reasons that have prompted it to take the decision will disappear so the UAE will resume its role."

Meanwhile, UAE Central Bank Governor Sultan bin Nasser Al Suwaidi said the UAE is sticking to its position not to be part of the currency union for the time being.