GCC summit will set pace for single currency: Al-Shamali
Published Date: December 12, 2009
KUWAIT: The forthcoming GCC leaders' summit, being hosted by Kuwait on December 14-15, will be the basis for the GCC monetary union and crown the efforts of the six member states over the past 30 years, said Finance Minister Mustafa Al-Shamali yesterday.
Al-Shamali, who is deputy head of the summit's preparatory committee, said that establishing the GCC monetary union would be a "remarkable" step in the great progress of the member states, noting that this would pave the way for the establishments of the GCC central bank.
Moreover, he said this would set the pace for the implementation of the common GCC currency, saying the governors of the GCC central banks would be intensifying their efforts to this end.
He noted that Kuwait had completed its legal and constitutional procedures to join the other GCC states in the monetary union, after the National Assembly (parliament) approved the GCC monetary union agreement and the union's bylaws by majority consensus on Tuesday.
He voiced hope that this step would help in passing the common currency in the future. Al-Shamali also expressed hope that the UAE and Oman would join the monetary union "because this would strengthen the region's economies and make it an economic bloc that would be taken into account at a global level.
Oman, UAE membership
The minister said that Kuwait, as chair of the current GCC summit, would support the membership of Oman and the UAE in the union. This, he said, would come out of loyalty to the roles played by the late leaders of Kuwait, Saudi Arabia and the UAE "who placed the first building blocks for the monetary union and dreamed of seeing this project on the ground.
Asked about the common GCC currency, Al-Shamali said, "This issue needs more time, and we may not be able to determine this for a number of years. But what we need at this point are specific factors that we must work with in the first stage, in order to achieve a common GCC currency.
He noted the importance of the common currency in "expanding the economic scope of the GCC, which would in turn increase dealings with the region - on the basis of it being an extensive region that is rich in resources and assets - and this will place the region on the world's map as one of the large economic blocs.
In response to a question about other economic issues under discussion at the summit, the minister said that they would include the common market and the borders of the customs' union with the outside world, as well as other crucially important matters.
Customs tariff
The GCC states have gone far in terms of economic achievements when compared to other countries, he noted. Al-Shamali said that the GCC nations would be working in the coming period to find a unified means to tackle the collection of customs tariffs, noting that there are a number of alternatives in this respect and that a solution could be reached. "We are moving steadily towards solving the issue of customs tariffs and completing the establishment of the customs border with the outside world.
On the subject of the launch of the GCC regional power network, Al-Shamali explained that the GCC countries have already completed the first phase, linking Bahrain, Saudi Arabia, Qatar and Kuwait, and the second phase, linking Oman and the UAE.
He said that the summit would see discussions on the establishment of a GCC railway authority, with each member state having a rail network for the transport of passengers and goods, linked to one another, with the future objective of joining these to networks in Europe and Asia.
The authority, once established, would look into the layout of the railway networks, he explained, adding that this had been agreed upon by the GCC nations' ministers of transport and communication at a previous meeting.
The studies to be carried out into this issue will not take a lot of time to complete because they will be prepared by international consultants, he explained, voicing hope that the railway system would help to increase inter-GCC trade exchange, as well as GCC trade with other countries.
GCC Bank
Speaking about the GCC development bank project, proposed by Qatar, Al-Shamali expressed optimism that the GCC finance and economy ministers would be able to reach an understanding on this matter and discuss alternatives during their preparatory meeting here today (Sunday).
Asked whether the summit would look into the oil market situation, Al-Shamali said, "It is only natural that the summit will discuss the global oil market situation, because this is a primary issue for all Gulf states.
He added, "The GCC states will exchange ideas and opinions on this matter and look into the impact of the market fluctuations has on the member states...we must discuss this matter intensely because it is the lifeline of the GCC countries.
The GCC states are trying to find alternative income sources alongside oil export, he noted. Al-Shamali concluded by noting that the GCC leaders will, as is customary at such events, be exchanging views on all relevant issues, whether related to political, economic, security, military or social fields or others.
Regional trade
Trade among the GCC states will be another of the major issues under discussion at the event, with the Gulf countries currently preparing for a new phase of cooperation in which integration will be achieved and the existing customs procedures for trade among GCC nations canceled.
In the first stage of the new phase, Kuwait's Ministry of Public Works is to construct the first part of a transnational highway, which will measure 181 kilometers in length. The highway, which will begin at Al-Nuwaiseeb border crossing, will be connected with the Seventh Ring Road.
Hussein Al-Mansour, the ministry's Assistant Undersecretary for Road Engineering Affairs, said yesterday that the project would achieve economic and social goals, reduce traffic congestion and save its users time and effort. The highway will later be connected with Al-Abdali road in northern Kuwait and Al-Sabbiya city, he added.
Summit draws accolades
Praise has come in from prominent figures around the world for the forthcoming event, with the Arab-Belgium-Luxembourg Chamber of Commerce (ABLCC) yesterday welcoming the event and underlining its great significance for the Gulf and internationally.
Founded in 1978, the ABLCC plays the role of an economic and trade bridge between Belgium, Luxemburg and the Arab countries. "This summit is of great importance as it will deal with essential and important issues whose results will not only reflect on the Gulf states but on all the Arab countries since the agenda includes regional, Arab and international issues," said ABLCC Secretary General Qaisar Hijazn.
He noted that the summit comes less than a year after this January's Arab Economic Summit, also hosted by Kuwait, which dealt with the economic crisis and was a cornerstone in supporting the Arab economy, saying that it was a summit of responsibilities and challenges to face that crisis.
In India, meanwhile, the Kuwaiti Ambassador to the country Sami Al-Suleiman said yesterday that he believes the forthcoming summit will represent a historic transformation for shared Gulf action. The ambassador stressed the summit's historic significance, saying that it attracts immense regional and international attention.
Given their enthusiasm to provide their people with adequate means to lead decent lives, the GCC leaders will have to reach agreement on the issues tabled at the event targeting Gulf development, he asserted.
Ambassador Al-Suleiman voiced confidence that the 'Kuwait Summit and Gulf Ambition' meeting will be a great success thanks to the wise leadership of His Highness the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Sabah, who is chairing the event.
The senior diplomat also voiced hope that the GCC leaders would come up with recommendations and resolutions that could lead to putting the planned Gulf market, single currency, regional power grid and railway projects into place.
In Saudi Arabia, meanwhile, a prominent medical official expressed great optimism for the forthcoming summit, saying that all the signs indicate that the event be a great success, with immense benefit being acquired from the expertise and profound vision of its host HH the Amir.
Dr Tawfiq Khoja, the Director General of the Executive Bureau of GCC Health Ministers, underscored the extensive experience of HH the Amir in political, economic, developmental, security and health issues, saying that the GCC is constantly moving forward in all areas and striving to achieve the region's peoples' aspirations, noting that it had made countless achievements since its foundation and always played an important role in consolidating ties among the six member states and devising developmental st
rategies.
He said that the GCC Secretariat would be adopting the executive bureau's report on the prioritization of health projects, while noting that GCC health cooperation had helped spread health values and awareness among the people.
He voiced hope that next week's summit will achieve all the aims that it aspires to. - KUNA
Published Date: December 12, 2009
KUWAIT: The forthcoming GCC leaders' summit, being hosted by Kuwait on December 14-15, will be the basis for the GCC monetary union and crown the efforts of the six member states over the past 30 years, said Finance Minister Mustafa Al-Shamali yesterday.
Al-Shamali, who is deputy head of the summit's preparatory committee, said that establishing the GCC monetary union would be a "remarkable" step in the great progress of the member states, noting that this would pave the way for the establishments of the GCC central bank.
Moreover, he said this would set the pace for the implementation of the common GCC currency, saying the governors of the GCC central banks would be intensifying their efforts to this end.
He noted that Kuwait had completed its legal and constitutional procedures to join the other GCC states in the monetary union, after the National Assembly (parliament) approved the GCC monetary union agreement and the union's bylaws by majority consensus on Tuesday.
He voiced hope that this step would help in passing the common currency in the future. Al-Shamali also expressed hope that the UAE and Oman would join the monetary union "because this would strengthen the region's economies and make it an economic bloc that would be taken into account at a global level.
Oman, UAE membership
The minister said that Kuwait, as chair of the current GCC summit, would support the membership of Oman and the UAE in the union. This, he said, would come out of loyalty to the roles played by the late leaders of Kuwait, Saudi Arabia and the UAE "who placed the first building blocks for the monetary union and dreamed of seeing this project on the ground.
Asked about the common GCC currency, Al-Shamali said, "This issue needs more time, and we may not be able to determine this for a number of years. But what we need at this point are specific factors that we must work with in the first stage, in order to achieve a common GCC currency.
He noted the importance of the common currency in "expanding the economic scope of the GCC, which would in turn increase dealings with the region - on the basis of it being an extensive region that is rich in resources and assets - and this will place the region on the world's map as one of the large economic blocs.
In response to a question about other economic issues under discussion at the summit, the minister said that they would include the common market and the borders of the customs' union with the outside world, as well as other crucially important matters.
Customs tariff
The GCC states have gone far in terms of economic achievements when compared to other countries, he noted. Al-Shamali said that the GCC nations would be working in the coming period to find a unified means to tackle the collection of customs tariffs, noting that there are a number of alternatives in this respect and that a solution could be reached. "We are moving steadily towards solving the issue of customs tariffs and completing the establishment of the customs border with the outside world.
On the subject of the launch of the GCC regional power network, Al-Shamali explained that the GCC countries have already completed the first phase, linking Bahrain, Saudi Arabia, Qatar and Kuwait, and the second phase, linking Oman and the UAE.
He said that the summit would see discussions on the establishment of a GCC railway authority, with each member state having a rail network for the transport of passengers and goods, linked to one another, with the future objective of joining these to networks in Europe and Asia.
The authority, once established, would look into the layout of the railway networks, he explained, adding that this had been agreed upon by the GCC nations' ministers of transport and communication at a previous meeting.
The studies to be carried out into this issue will not take a lot of time to complete because they will be prepared by international consultants, he explained, voicing hope that the railway system would help to increase inter-GCC trade exchange, as well as GCC trade with other countries.
GCC Bank
Speaking about the GCC development bank project, proposed by Qatar, Al-Shamali expressed optimism that the GCC finance and economy ministers would be able to reach an understanding on this matter and discuss alternatives during their preparatory meeting here today (Sunday).
Asked whether the summit would look into the oil market situation, Al-Shamali said, "It is only natural that the summit will discuss the global oil market situation, because this is a primary issue for all Gulf states.
He added, "The GCC states will exchange ideas and opinions on this matter and look into the impact of the market fluctuations has on the member states...we must discuss this matter intensely because it is the lifeline of the GCC countries.
The GCC states are trying to find alternative income sources alongside oil export, he noted. Al-Shamali concluded by noting that the GCC leaders will, as is customary at such events, be exchanging views on all relevant issues, whether related to political, economic, security, military or social fields or others.
Regional trade
Trade among the GCC states will be another of the major issues under discussion at the event, with the Gulf countries currently preparing for a new phase of cooperation in which integration will be achieved and the existing customs procedures for trade among GCC nations canceled.
In the first stage of the new phase, Kuwait's Ministry of Public Works is to construct the first part of a transnational highway, which will measure 181 kilometers in length. The highway, which will begin at Al-Nuwaiseeb border crossing, will be connected with the Seventh Ring Road.
Hussein Al-Mansour, the ministry's Assistant Undersecretary for Road Engineering Affairs, said yesterday that the project would achieve economic and social goals, reduce traffic congestion and save its users time and effort. The highway will later be connected with Al-Abdali road in northern Kuwait and Al-Sabbiya city, he added.
Summit draws accolades
Praise has come in from prominent figures around the world for the forthcoming event, with the Arab-Belgium-Luxembourg Chamber of Commerce (ABLCC) yesterday welcoming the event and underlining its great significance for the Gulf and internationally.
Founded in 1978, the ABLCC plays the role of an economic and trade bridge between Belgium, Luxemburg and the Arab countries. "This summit is of great importance as it will deal with essential and important issues whose results will not only reflect on the Gulf states but on all the Arab countries since the agenda includes regional, Arab and international issues," said ABLCC Secretary General Qaisar Hijazn.
He noted that the summit comes less than a year after this January's Arab Economic Summit, also hosted by Kuwait, which dealt with the economic crisis and was a cornerstone in supporting the Arab economy, saying that it was a summit of responsibilities and challenges to face that crisis.
In India, meanwhile, the Kuwaiti Ambassador to the country Sami Al-Suleiman said yesterday that he believes the forthcoming summit will represent a historic transformation for shared Gulf action. The ambassador stressed the summit's historic significance, saying that it attracts immense regional and international attention.
Given their enthusiasm to provide their people with adequate means to lead decent lives, the GCC leaders will have to reach agreement on the issues tabled at the event targeting Gulf development, he asserted.
Ambassador Al-Suleiman voiced confidence that the 'Kuwait Summit and Gulf Ambition' meeting will be a great success thanks to the wise leadership of His Highness the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Sabah, who is chairing the event.
The senior diplomat also voiced hope that the GCC leaders would come up with recommendations and resolutions that could lead to putting the planned Gulf market, single currency, regional power grid and railway projects into place.
In Saudi Arabia, meanwhile, a prominent medical official expressed great optimism for the forthcoming summit, saying that all the signs indicate that the event be a great success, with immense benefit being acquired from the expertise and profound vision of its host HH the Amir.
Dr Tawfiq Khoja, the Director General of the Executive Bureau of GCC Health Ministers, underscored the extensive experience of HH the Amir in political, economic, developmental, security and health issues, saying that the GCC is constantly moving forward in all areas and striving to achieve the region's peoples' aspirations, noting that it had made countless achievements since its foundation and always played an important role in consolidating ties among the six member states and devising developmental st
rategies.
He said that the GCC Secretariat would be adopting the executive bureau's report on the prioritization of health projects, while noting that GCC health cooperation had helped spread health values and awareness among the people.
He voiced hope that next week's summit will achieve all the aims that it aspires to. - KUNA