Oman withdraws from Mideast monetary Union

Inspired by the success of the European Union, the Cooperation Council for the Arab States of the Gulf (GCC), which includes the nations of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, is aiming to establish a monetary union by 2010. The six-nation bloc plans to function in many ways like the EU, with a common currency and a common monetary policy. However, one nation, Oman, will not be participating in the union because of what it believes to be draconian conditions of membership. Specifically, Oman is not willing to adhere to the requirement that caps public debt at 60% of GDP, one of the prerequisites of membership. The Gulf News reports:

The GCC's single currency plan can go ahead with the absence of one member state, like in the eurozone where only 13 countries out of the EU's 27 adopted the euro.

Read More: Why Oman pulled out of the single currency