The key info is in the 4th and a portion of the goal for the region is a two word phrase in the 5th paragraph.

Greenspan Says Gulf Inflation Will Fall If Dollar Peg Is Dropped

2/26/2008 4:31:15 AM The Gulf states' dollar pegs restrict their ability to draw out monetary policy suiting domestic economic condition, independent of the US policy stance, the former FOMC Chairman Alan Greenspan said Monday in Jeddah, Saudi Arabia.

Most gulf states are experiencing record high of inflation, with Qatar reporting a 14% surge last year, followed by the UAE, Kuwait and other countries. Saudi Arabia's inflation hit a twenty seven year high of 7% in January, while UAE's inflation topped 9.3% in nineteen years during the month. The regional inflation average hit 6.3% in 2007, compared to 0.3% in 2001, according to Merrill Lynch & Co.

With the dollar's weakness, the GCC countries have experienced a sustained depreciation of their real effective exchange rates and an increase in imported inflation.

Greenspan said if these countries choose to drop their dollar pegs, the inflation in the region would fall “significantly.” Gulf governments should consider the idea of floating their currencies assessing its implication in the long-term, Greenspan said.

However Saudi and UAE central bank chiefs spoke in favor of retaining dollar pegs, while Qatar's prime minister advocated for regional currency reform to avert possible unilateral revaluations. According to Saudi Central Bank Governor Hamad Saud Al Sayyari, floating the Saudi riyal would not be appropriate as the country relies on oil exports. He said floating is beneficial when the economy and exports are diversified.

According to UAE Central Bank Governor Sultan Nasser Al Suweidi, Dollar pegs were helping Gulf States attract foreign investments. However, he favored the view that the Gulf governments should consider the implication of currency floating in the long-term. http://www.rttnews.com/forex/economicnews.asp?date=02/26/2008&item=10