Eye on economy

Jeddah : Gulf Arab states yesterday formed a new agency to tighten economic cooperation in the region.

The Economic and Development Affairs Authority “will boost coherence, integration and coordination between member states in all economic and development sectors,” the Gulf Cooperation Council (GCC) said in a statement after the 16th consultative meeting of the GCC Supreme Council in Jeddah, Saudi Arabia.

The newly formed body “will look into matters such as completing the customs union and the common market of the GCC states,” Saudi Foreign Minister Adel Al Jubeir told a news conference after the summit.

He said the authority “can solve these issues urgently and effectively” to promote cooperation.

No decision has been made on when to start using a single Gulf currency, which has been mooted for years, GCC Secretary General Abdullatif al-Zayani said.

His Majesty King Hamad bin Isa Al Khalifa took part in the meeting, held under the chairmanship of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud at King Abdullah International Convention Centre.

HM King later attended the luncheon banquet hosted by Saudi King Salman in honour of the leaders of the GCC.

The collapse of global oil prices has forced the Gulf states to make unprecedented fuel and energy subsidy cuts and plan to introduce indirect taxation. 

Oil prices have fallen from more than $100 a barrel in early 2014 to around half that level.

US President Barack Obama said after a summit with the GCC in Riyadh last month that the six-nation council would establish a “high-level economic dialogue” with the United States. 

It will “focus on adjusting to lower oil prices, increasing our economic ties and supporting GCC reforms,” Obama said.