GCC Monetary Union Unlikely by 2010
With only about two years to go, Gulf Arab oil producers may not be able to meet the target for a monetary union by 2010, and are unlikely to sever their dollar pegs because the US currency is appreciating against other major currencies.

Confidence Tricks
The HSBC Gulf Business Confidence Index reveals that although confidence levels remain high among Gulf business people, they are on a steady, downward trend.

Egypt
Shot Across the Bows
The direction of the Egyptian economy remains broadly positive and, in the medium term at least, growth and investment look robust. However, the recent downgrading of Egypt's sovereign bond outlook by Moody's is indicative of the economic problems facing the country.