GCC bank solution is crucial

The decision of Gulf Cooperation Council (GCC) leaders on May 5 to select Riyadh as the location of the GCC Central Bank (GCB) was an unexpected surprise to the UAE and many experts who were following the negotiations.

However, the announcement by the UAE that it will pull out of the GCC monetary Union in protest against this decision was also equally unexpected.

The UAE is the second largest economy and the largest financial centre in the GCC. If the UAE carries out this threat what remains of the GCC monetary union will be rendered ineffective and it will also be a major setback for plans to introduce a common GCC currency.