Economy

Singapore, Gulf states sign free trade agreement

Singapore and six Gulf states signed a free trade agreement that will pave the way for greater two-way economic ties, the Asian city-state said. It is the first free trade agreement for the six-country GCC, the Singapore government said. The free trade pact was signed in Doha by Singapore Prime Minister Lee Hsien Loong, who was there on a working trip, and his GCC counterparts. Under the terms of the agreement, about 99 per cent of Singapore's domestic exports will get tariff-free access to the GCC economies, the ministry said in the statement.

Gulf Arab states set for monetary council in 09

Gulf Arab states are poised to launch a common monetary council, the precursor to a regional central bank, in 2009, the head of the GCC said in remarks published this month. "We look forward to setting up the monetary council of the Gulf Cooperation states next year," GCC Secretary-General Abdul-Rahman al-Attiyah said. The GCC -- a loose political and economic alliance that comprises of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- launched monetary union plans in 2001 but setbacks have since dogged the project.

Gulf Arabs suspend EU free trade talks

The Gulf Cooperation Council (GCC) has suspended talks with the European Union over a free trade agreement, the bloc's secretary-general said. A Saudi newspaper quoted Qatar's Prime Minister Minister Sheikh Hamad bin Jassem al-Thani as saying the EU was seeking to include political clauses in the accord, without elaborating. He called on the GCC to suspend the talks. Aimed at boosting trade and investment between the two blocs, the agreement would make it easier for Gulf Arab states to export products, such as petrochemicals, to Europe, which currently imposes taxes on some imports from the region.

Iran, Oman sign agreement to boost economic cooperation

Officials from Iran and Oman discussed Tehran- Muscat economic relations. They singed a letter of understanding for cooperation in the 12th meeting of the two countries joint Economic Commission. The Iranian delegation was chaired by Foreign Minister Manuchehr Mottaki and the Omani side was headed by the country's Minister of Commerce, Industry and Minerals Maqbul bin Ali Sultan. They discussed Tehran and Manama potentials to promote cooperation in the field trade, industrial, energy, transportation, customs and telecommunications activities.

Oman gives green light to investment stability fund worth US$390m

The Capital Market Authority of Oman has issued a license for the establishment of an investment stability fund worth QAR150 million (US$390 million) in a bid to stabilize the country's declining stock market. The fund will have 60 per cent government holdings, and the remaining 40 per cent will be distributed to pension funds and the private sector, represented by banks, investment companies and the companies operating in securities, Minister of Commerce and Industry Maqbool bin Ali Sultan was quoted as saying.

NoozzVIEW; UAE rejects union calls

The government of the UAE has shown considerable independence and turned down widely expected international calls that it should change its internal labour laws and for the first time, permit trade unions to act on behalf of the large number of migrant workers now employed there most in the construction and service industries. The government's declaration of certain red lines in its treatment both of migrant workers and women came in response to a long expected United Nations review of the country's record on human rights.

Kuwait's Kharafi pledges US$3bn investment in Egypt

The vice chairman of al-Kharafi Group says the Kuwaiti conglomerate is planning $3 billion in new investments in Egypt next year. Ibrahim Saleh told a conference in Cairo that the new investments were targeted at both the tourism and industrial sectors. Kharafi, a Kuwaiti company with diverse holdings, including oil and gas, fertilizers, hotels and tourism and construction, is known in Egypt for its development of the southern Red Sea resort area of Marsa Alam.

Basket of currencies proposed

Economists at Dubai International Financial Centre proposed an anchor basket for the Gulf common currency to be introduced from January 1, 2010. The recommendation of the new anchor basket came ahead of the meeting of the Gulf heads of states on December 29 and 30 in Muscat, Oman. The proposed basket would comprise and give a 45 per cent weightage to the US dollar, followed by the euro at 35 per cent, the yen at 20 per cent and sterling at 5 per cent. "We see that managing exchange rates against a basket of currencies rather than one currency would allow adequate flexibility to tailor monetary policy that can address both domestic economic issues and withstand external currencies," said Dr Nasser Al Saidi, Chief Economist of DIFC.

NoozzVIEW; Land deal binds Qatar and Kenya

Food security in these turbulent economic times has fathered a number of deals between the Middle East and various faraway spots, but probably none can be considered as exotic as that just publicised between Qatar and East Africa's biggest and most successful economy, Kenya. At stake in the planned exchange are 100,000 acres of prime agricultural land in the Coast province of Kenya, which would be leased to the oil-rich Gulf State for horticulture and farming, in exchange for a loan of some "2.4 billion which the Kenyan authorities would put to use immediately to fund a much-needed new port on the sleepy Indian Ocean island of Lamu" long a favoured holiday spot for rich Westerners.