The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Single currency: UAE pulls out of currency union

The United Arab Emirates has informed the secretariat of the Gulf Cooperation Council that it is pulling out of the proposed GCC monetary union, according to a report by the country’s official news agency.

The move came less than three weeks after Gulf leaders agreed that the headquarters of the central bank for the region would be located in Saudi Arabia.

The consensus view is that the UAE was worried that locating the bank in Saudi Arabia would give Riyadh undue power. The UAE had been hoping to host the central bank itself.

However, there are other theories as to why the UAE pulled out. The economic crisis has shown the importance of individual authorities retaining autonomy to deal with its effects.

The UAE is the second country after Oman to pull out of the currency union. Bahrain, Kuwait, Qatar and Saudi Arabia have reconfirmed their commitment, but UAE central bank governor Sultan Bin Nasser Al Suwaidi denied that the country was in talks to re-enter the process.

"We are not negotiating. For the time being, the position of the UAE is to withdraw," Al Suwaidi told reporters.

Advocates of monetary union say it would lead to greater integration across a region characterized for the most part by economies that on their own are small.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree