JEDDAH, 2 July — Saudi Arabia yesterday decided to implement a number of GCC economic resolutions which seek to set up a GCC customs union by January next year and a currency union by 2010.

The Council of Ministers, chaired by Prince Abdullah, the regent, directed the finance minister to take necessary steps to carry out the resolutions adopted by the GCC summit held in Muscat.

The Cabinet meeting also welcomed the positive elements in the new Middle East peace plan presented by US President George W. Bush last week.

However, the Cabinet emphasized that the UN resolutions and a Saudi-sponsored Arab peace plan must be taken into consideration to bring about a just and comprehensive settlement in the region.

The Cabinet said it was looking forward to “the outcome of US Secretary of State Colin Powell’s contacts with all parties to come out with a plan ... to implement the positive elements in the Bush plan.”

The Cabinet strongly condemned Israeli attacks against the Palestinian people and called on the international community to press Israel to cease its continuous aggression.

It said the continuing Israeli aggression and massacre of innocent Palestinians was obstructing both the international efforts to establish peace in the Middle East and the reforms being carried out by the Palestinian Authority.

The meeting reviewed the resolutions taken by the OIC foreign ministers’ conference in Khartoum and called upon the member states of the Organization of Islamic Conference to stand united to confront the challenges.

State Minister and Acting Information Minister Dr. Madani Allaqi said the Cabinet meeting also approved a GCC decision to establish a commercial arbitration center.

The resolution adopted by the GCC summit in Muscat last year to advance the launch of the customs union from 2005 to 2003 was a turning point in the history of the organization. GCC groups Saudi Arabia, Oman, Qatar, Bahrain, Kuwait and the United Arab Emirates.

The meeting agreed to take necessary measures to exempt imports — such as machinery, equipment, spare parts, raw materials and packing materials — of GCC industries from customs tariff.

The Cabinet endorsed the agreement with the Luxembourg Economic Union on protecting and promoting mutual investments.