RIYADH, Dec 4: The Arab Gulf states have welcomed a proposal put forward by Iranian President Mahmoud Ahmadinejad for a regional security arrangement.

A summit of the Gulf Cooperation Council which ended in Doha on Tuesday, said its member states would review the proposal in a way that enhanced good neighbourly relations and mutual respect and strengthened regional security and stability.

President Ahmadinejad’s participation was one of the main features of the summit because this was for the first time that an Iranian leader had been invited to what has always been regarded as a gathering of leaders of pro-US and anti-Iran Arab states of the Gulf. His presence was of significance, particularly because of lingering threat perceptions within the GCC on account of the Iranian nuclear programme. During his opening speech at the summit on Monday, Mr Ahmadinejad offered to sign a security pact with the Arabs and proposed a council for regional security and a 12-point cooperation plan, including on free trade and joint investments in oil and gas.

A communiqué issued at the end of the summit said the council remained committed to a 2010 target date for a monetary union. However, it ignored the issue of dropping the dollar peg of the Gulf currencies. With Saudi Arabia reluctant to make a joint move on the issue and the UAE and some other states pushing the idea of de-pegging, the leaders decided to avoid the contentious issue — at least for the time being.