Withdrawal from GCC single currency 'final'

The UAE's decision to pull out of the planned GCC Monetary Union agreement is "final" even if its demand to host the Gulf central bank is met, said Minister of Economy Sultan bin Saeed Al Mansouri.

"The UAE was the most entitled to host the GCC Central Bank in Abu Dhabi as its banking sector is strong and its Central Bank is one of the world's best," he added.

"The non-selection of the UAE for hosting the GCC Central Bank did not take into consideration the state's importance and its economic development," Al Mansouri said.

However, the UAE's withdrawal from the GCC Monetary Union does not mean the ending of relations with the GCC states.

"Our trade and economic relations with the GCC states are strong and will continue. In addition, the UAE economy forms a third of the GCC's total gross domestic product and there is reciprocal respect between the UAE and remaining GCC states," Al Mansouri added.

When asked if the UAE would alter its stance if it could be agreed that it would host the GCC Central Bank, he said: "I currently confirm that our withdrawal decision is final. But if Saudi Arabia offered this proposal to the UAE, the Cabinet will study it and take a suitable decision in that regard."

Meanwhile, Foreign Minister Sheikh Abdullah bin Zayed Al Nahayan told reporters: "I would not say the door is closed, there is nothing that is an end game in politics. But I am saying that for the moment we are not interested." (With input from Agencies)


Investment draft law

On the percentage of foreign ownership in the new investment draft law, Al Mansouri said: "The new draft law boosts the foreign investment in the country. Foreigners will have 100 per cent ownership in some sectors. The Cabinet will decide the ownership percentage, whether 100 per cent or less, according to certain criteria, the most important of which are the foreign investment's value-added and extent of need of national economy for the investment and what are the sectors that need such investment." (Wam)

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