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AGCC leaders urged to discuss crisis fallout

MUSCAT — A regional commerce body is urging Arab Gulf leaders to discuss the effect of the global financial crisis on the region and come up with an economic stimulation plan with the private sector, regional newspapers reported yesterday.

Rulers of the Arab Gulf Cooperation Council (AGCC) countries are holding their annual summit here on December 29 and 30.

“The AGCC countries are not immune to any repercussions ... they are already suffering from a sharp decline in oil prices,” secretary-general of the Federation of AGCC Chambers of Commerce said in a statement carried by a number of newspapers.

“The Muscat summit should discuss all these developments in participation with the private sector in order to chalk out economic stimulation programmes for members and preserve our development achievements,” Abdul Rahim Naqi said.

Global financial turmoil is putting the brakes on a six-year economic boom in the world’s biggest oil-exporting region, leading economists to slash their 2009 economic growth forecasts for Gulf states.

At their meeting, Gulf leaders are expected to approve the final draft of a monetary union agreement, as well as the charter outlining the powers of a common monetary council that would become the region’s central bank.

The Gulf states are planning to launch a single currency by a 2010 deadline policymakers and economists have said would be difficult to meet.