GCC monetary union likely to better economies

GCC monetary union likely to better economies

Bahrain Tribune - 13/03/2008

(MENAFN - Bahrain Tribune) Assistant Secretary-General for Economic Affairs at the Arab League, Dr Mohammed Ibrahim Al Tuwaijri, has dismissed the idea that any GCC state would cut its currency link with the US dollar except Kuwait.

He said there were reports that the dollar might recover by March 2009. Talking on the sidelines of the regional meet on GCC policies for using clean fuel for cleaner environment al Tuwaijri said it was not in the interest of GCC states to cut their currency link with the US dollar since this might lead to chaos, especially since all deals and transactions were in carried out in the dollar. Regarding the unified GCC currency, he said all the recent indications showed it would be issued by 2010 in view of the international economic situation such as inflation and recession in the US dollar that reflected negatively on GCC currencies linked to it. He added that the introduction of a unified GCC currency would be one of positive resolutions to better the economic situation.

Minister of Oil and Gas and Head of the National Oil and Gas Authority Dr Abdulhussain Bin Ali Mirza, who opened the regional meet on developing GCC policies to use cleaner fuel for better environment, said: "Bahrain has become the first country in the region to produce low Suplphur Diesel and also jet fuel with less CO2 omissions."

The two-day meeting will discuss issues related to fuel and cars and what has been achieved by the GCC, Middle East and North African countries to improve the quality of fuel through setting standards for vehicles in view of the challenges facing the production of unleaded fuel.

The minister said that international efforts and cooperation were essential to improve the international power scenario including the oil sector to maintain environment through improving petroleum products.

Dr Mirza mentioned a number of projects in the field, including unleaded fuel which has been produced since 2000 at a cost of $7.4 million.
Prime Minister Shaikh Khalifa bin Salman Al Khalifa in December opened a complex to produce unleaded diesel at a cost of $725 million with investment revenue reaching 30 per cent.

"There are a number of similar projects of international standards to maintain environment which would be launched after completing their technical and financial studies."

The Director and Regional Representative of the UN Environment Programme for West Asia Dr Habeeb Al Hobar said an international partnership was essential to tackle the issue.

He hailed the role of international partnership in using natural resources wisely and also the use of cleaner fuel under the sponsorship of the environment programme which, he said,contributed in spreading the use of unleaded fuel.

He also praised the policies and programmes of Arab countries to achieve a cleaner environment, underlining the ability of the GCC states to use unleaded fuel since 2003 in Saudi Arabia, Kuwait and the UAE. Deputy Chairman of the general committee to protect fishery resources, environment and wildlife Dr Ismael Al Madani referred to the increasing number of cars in Bahrain with about nine per cent considered as dangerous from the point of view of traffic and leading to accidents and deaths.