Doha: The implementation of the Gulf market announced at the Gulf summit on Tuesday could take several months to become effective, analysts said reacting cautiously to the announcement.
Gulf leaders attending the 28th Gulf Cooperation Council (GCC) said citizens will enjoy equality in all fields of life from January 2008, but observers sceptically said the bloc may require time before fulfilling the citizens' expectations.
"The Gulf market will take a long time to become effective. The mechanisms through which the bloc would function are unclear and I believe citizens will have to wait before valuing the benefits of the union," said Mohammad Al Setri, editor in chief of Al Meethaq newspaper in Bahrain.
The 2010 deadline
Speaking to Gulf News in Doha, Al Setri said the GCC is also likely to postpone the 2010 deadline for the creation of the monetary union, though leaders at the summit reaffirmed their commitment to stick to the target date.
"Unless the six countries agree on a unified exchange rate and take a common stand vis-Ã -vis the dollar peg, GCC will not be able to move towards the monetary union," he said.
Gulf nationals will be entitled to residence, social security and pension, deal freely in the financial markets, own properties, equal taxation treatment and equal educational, health and social services, the declaration said.
Yousuf Obaidan, a Qatar-based analyst and commentator, said the announcement of the market marks the strong will of the six GCC leaders to go ahead with the integration process despite the challenges that may arise in the implementation process in the next few months.
"It is an important move, although it will take time before we achieve full-fledged implementation.
The legislations of the single states now would be harmonised accordingly and this would take several phases to be accomplished."
Hassan Al Ansari, editor-in-chief of English daily Qatar Tribune and a commentator on Gulf affairs, said one of the most challenging aspects of the unification process would be the ownership issue.
"Due to differences in sizes of the countries, wealth and economies, some states may be hesitant in allowing ownership to Gulf citizens without restrictions," he told Gulf News.
