RIYADH, 12 December 2002 — A proposal to create a central bank representing all the Gulf Cooperation Council states will top the agenda of a major “GCC Banking Forum” to be organized in Dubai by the six Gulf states on Jan. 12. The event will also address other key issues faced by the banking industry especially after Sept. 11 terror attacks in the United States.
The GCC national banks and financial institutions are seriously considering the merits and demerits of setting up a GCC central bank. Hence, the participants in the forum will hear expert comments whether a central bank will enable regional banks, security firms, insurance companies and other financial institutions to function smoothly and deliver better services especially in a post-Sept. 11 situation.
The event is particularly significant as the Gulf states are planning to set up a monetary union in 2005 and a single currency union in 2010.
This forum will provide banking industry and professionals from the Gulf region with a clear vision on future trends and best practices suited for the GCC banking industry, said a statement released by the GCC General Secretariat. The Dubai conference, which is part of the GCC Economic Forum, will also highlight ways by which banks can upgrade services, enhance customer care and customer retention.
The GCC has already allowed its national banks to open their branches and operate in any of the six Gulf states. The GCC groups Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. This regional grouping has a combined oil output of around 13 million barrels daily and more than 50 percent of the world’s proven crude reserves.
