Gulf Monetary Council was established in March 2010. The Monetary Council, which is based in Riyadh, is a regional economic organization. The membership of the Monetary Council is restricted on he Gulf Cooperation Council (GCC) countries and now it includes four countries, namely, Kingdom of Bahrain, Kingdom of Saudi Arabia, State of Qatar, and State of Kuwait.
The Monetary Council was established following the approval of the Monetary Union Agreement and the Statute of the Monetary Council by the GCC Ministerial Council in June 2009. Subsequently, the Member States completed the ratification and deposit procedures for the monetary union agreement and statute document in February 2010. The Article (20) states that the statute enters into force after one month from the date of depositing the fourth instrument of ratification. Accordingly, the statute of the monetary council became effective on 27 March 2010, which was also realized as the date of the Monetary Council establishment.
Thus, this Statute has gained the status of international treaty, which carries with it the primary objectives and tasks to achieve monetary union between member states and issuance of the common currency. It also stipulated that the Monetary Council has legal personality, and financial & administrative independence. Moreover, it entrusted the council to commence its mandate, which involves a number of tasks combines the economic research & statistics, layout the legal and institutional framework of the Central Bank, coordination of economic policies between the Member States, and other tasks set forth in its Statute.
The bodies of the Gulf Monetary Council (o) consist of a Board of Directors and an Executive Body based in Riyadh. The Board of Directors enjoys full powers to achieve the objectives for which the Gulf Monetary Council has been established, including the issuance of required rules and regulations to implement the objectives and tasks of the Monetary Council. The Executive Body is the technical, financial and administrative body which implements the decisions and recommendations of the Board of Directors stemming from its meetings; and it prepares studies on the integrated plans and programs related to the tasks and objectives of o. The Executive body comprises the Executive President and the technical, financial and administrative units required for the performance of its business.