Gulf leaders meeting on Monday will give the green light to a number of multi-billion-dollar economic projects, but it remains unclear whether they will also step in to aid debt-ridden Dubai.
Politically, Yemen's fight against Shiite rebels and Saudi Arabia's involvement in the conflict plus the Iran nuclear issue and the impact of both on regional security will also top the agenda in Kuwait.
The oil-rich nations are expected to formally launch a monetary union pact, approve a multi-billion-dollar railway network and commission the start of a common power grid project, officials said ahead of the two-day summit.
Leaders of the six-nation Gulf Cooperation Council (GCC) will also review the impact of the global economic meltdown on their oil-dependent economies which have also suffered from Dubai's debt crisis.
But Kuwaiti ruler, Sheikh Sabah al-Ahmad al-Sabah, insisted the regional impact of the global crisis had been "relatively limited," KUNA news agency reported.
The emir also called for a "fair oil price" for both producers and consumers to justify costly oil developments being implemented by GCC countries to raise output.
Kuwait's Finance Minister Mustafa al-Shamali urged his counterparts to "work together to avert any additional consequences of the (global economic) crisis."
His counterpart in the foreign ministry, Sheikh Mohammad al-Sabah, said GCC states were surrounded by "grave security developments and serious economic implications."
Economies of the Gulf bloc, which boasts 45 percent of the world's proven oil reserves and a quarter of global gas resources, have been hard hit by the sharp drop in oil revenues after years of major cash flow.
It was not immediately known if the GCC members -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- will also step in to assist heavily indebted Dubai, one of seven emirates in the UAE federation.
The glitzy Gulf tourism hub sent jitters throughout global markets in late November when it signalled difficulties in repaying the debt of its largest conglomerate Dubai World, which has liabilities of 59 billion dollars.
GCC leaders are due to launch a monetary union pact signed in May and ratified by four of the six states after Oman and the UAE withdrew from the project.
The pact stipulates the establishment next year of the GCC monetary council, a precursor for a Riyadh-based central bank. Sheikh Mohammad al-Sabah said last week it could be 10 years before the currency materialises.
The GCC leaders are expected to give the go-ahead for a rail network by establishing the GCC railway authority to oversee construction of 2,000 kilometres (1,240 miles) of track at a cost of up to 25 billion dollars.
The first phase of the GCC power grid project which has already started to link the electricity networks of Saudi Arabia, Kuwait, Qatar and Bahrain, will also be commissioned by the leaders.
Shamali called for resolving snags delaying implementation of a customs union launched in 2003 and a common market created two years ago.
On the political front, the fighting in Yemen between government forces and Shiite rebels will top the agenda, especially since Saudi Arabia became directly involved.
Yemeni Foreign Minister Abu Bakr al-Kurbi on Sunday delivered a letter from President Ali Abdullah Saleh to the Kuwaiti ruler who said the GCC summit will study providing economic and security assistance to Sanaa.
Iran's nuclear ambitions, with international sanctions again looming large, will also take centre stage, particularly in the light of strained relations between Tehran and Riyadh over the Yemen conflict.
Kuwait decided not to invite any foreign leaders to the summit, despite Iran's President Mahmoud Ahmadinejad being welcomed by Qatar at the 2007 summit.
Copyright 2009 AFP Global Edition
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