Gulf Arabs to agree on fiscal unity

[Naveed Yaseen]

MUSCAT: Gulf Arab rulers were poised on Tuesday to announce a pact that paves the way for a unified currency for the world’s biggest oil-exporting region.

The summit, billed as an economic forum but overshadowed by the Israeli air strikes in Gaza, is expected to finally deliver an agreement on the long-planned monetary union.

Kuwait’s finance minister said Gulf Arab states will have until Dec 12 next year to enact a monetary union agreement once approved by the rulers at the meeting in the Omani capital.

The union would enable GCC countries, most of whom peg their currencies to the US dollar, to have the option of adopting amore flexible foreign exchange regime, facilitate trade and shield their economies against global pressure.

Gulf states have given renewed emphasis to getting the project back on track this year after Oman decided in 2006 not to join monetary union.

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