GCC_Countries_mapFour of the GCC countries will announce the introduction of a common currency by the end of this year, reported local news sites on Sunday.

According to Arabic news reports, a common GCC currency will be announced by four of the six GCC countries by the end of this month. The currency will be pegged to the dollar and is slated to be announced by Saudi Arabia, Qatar, Kuwait, and Bahrain.

Sources stated that the decision to peg the common currency to the dollar is political and is not related to the economy. The sources also informed that it is unlikely that UAE and Oman will join the common currency anytime soon. However, the sources did not mention the reason for the two countries for not joining.

It would be more economically feasible to peg the new common currency to a basket of currencies instead of the dollar because the volume of trade between the European Union and the Gulf countries is much larger than with the United States, added the source.

The plan to introduce a common currency for the GCC countries similar to the Euro has been going on for many years now.