MidEast Property Orgy Ends, Currency Battle BeginsWhat: Dropping oil prices and a global credit crisis is hitting the Middle East too, where some states are considering a common currency.

The Dirt:
Cost cutting in a world where five-star hotels are the norm is a scary sign. The folks in the Middle Eastern city of Dubai are cutting costs and bringing the real estate development spending spree to halt, having already asked Abu Dhabi for help. Some of the folks in the Gulf Cooperation Council (GCC) are strained, with Kuwait struggling to keep its stock exchange going, and others member states battling debt. In Dubai, developer Meraas is reviewing the recently launched $95 billion Jumeirah Gardens project. According to Trade Arabia, more project details can be expected in early 2009. The news follows word of 500 job cuts at another government owned-developer, Nakheel, which makes islands. However, the real news lies in a possible top-down economic change that is aimed at further uniting the states and promoting regional trade.

The GCC, which is comprised of Bahrain, Kuwait, Qatar, Oman, United Arab Emirates and Saudi Arabia, met this week to discuss the possibility of creating a common currency similar to the euro. The leaders anticipate a common currency could be created by 2010, in an effort to promote regional trade, remove deal-associated risks and cut individual currency risks, Asian Investor reports. Those in favor think creating a common Central Bank would also help bolster the emerging financial sector of Islamic finance, which includes funds that are compliant with Islamic law. However, those opposed think little could be gained from it as some local currencies are stable and a central unit would give nations less power over their own monetary policies.