The UAE could still rejoin a landmark monetary union to be launched by four of its partners in the Gulf Co-operation Council despite a rift over the location of the GCC central bank, Kuwait's finance minister said yesterday.

Mustafa Al Shimali said the monetary union, the first in the Middle East, would be ready for ratification by the GCC heads of state when they hold their annual summit in Kuwait on December 16.

"There is no reason why the leaders would not discuss the UAE's return to the monetary union… the UAE will return but I can not guarantee this… this will be up to the GCC summit," he told the Saudi Aleqtisadia Arabic language daily.

The UAE pulled out of the currency union early this year apparently in protest at the choice of the Saudi capital Riyadh as the headquarters of the planned GCC central bank on the grounds it was the first GCC member to ask to host it.

Oman quit the plan a year earlier, leaving Saudi Arabia, Kuwait, Qatar and Bahrain to create the monetary union by 2010.

Saudi Arabia and Qatar have approved the project, while Bahrain and Kuwait are expected to follow suit ahead of the December 16 GCC summit.

"Kuwait's Umma council [parliament] is expected to ratify the monetary union on December 8, while Bahrain could approve it in the next few days," Shimali said.

"With the ratification of all members, the project will be ready for final approval at the GCC summit in Kuwait… there is an initial agreement to launch the currency union in 2010 unless the GCC Central Bank Governors want extra time to accomplish economic and financial convergence criteria."

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