Gulf states sign agreement on monetary union

Foreign ministers of four Gulf Arab states formally agreed in Riyadh on Sunday to form a monetary union, in a show of unity to underline their commitment to the scheme after the United Arab Emirates pulled out last month.

The Saudi press agency reported that the ministers had signed an agreement on the union in a closed meeting but gave no further details on matters such as timing or on how reserves or debt would be managed.

The UAE, the second-largest Gulf economy, withdrew from the proposed monetary union and plans for regional economic integration last month. It pulled out after Riyadh, the Saudi capital, was selected as the headquarters for the future regional central bank over Abu Dhabi, the capital of the UAE.