“Since the declining oil prices are a concern for the GCC economies, it will be very much on the agenda for discussion,” Youssef bin Alawi bin Abdullah was quoted as telling the Arabic language daily Oman.

Abdullah, whose country will host the summit of the Gulf Cooperation Council (GCC) on Dec. 29-30, could not immediately be reached to confirm the remarks.

The GCC is a loose economic and political alliance that also includes top oil exporters Saudi Arabia, Kuwait, the United Arab Emirates and Qatar. Bahrain, a small producer, is also a member.

Oil prices have tumbled below $40 a barrel and are virtually a quarter of their level in July due to fears that a deep global recession will slash world energy demand.

Oil Ministers of the Organization of the Petroleum Exporting Countries agreed their deepest oil cut on Dec. 17, slashing 2.2 million barrels per day from oil markets in a race to balance supply with rapidly crumbling demand for fuel.

Four GCC countries are members of OPEC.

A key objective of the Muscat meeting will be to approve a long-awaited Gulf monetary union agreement, as well as the charter outlining the powers of a common monetary council that would become the region’s central bank.

Oman is not participating in the project.

Abdulmalik al-Hinai, undersecretary for economic affairs at Oman’s Ministry of National Economy, told Reuters on Wednesday the rulers would also discuss a common electricity grid, plans for a regional railway and expansion of the customs union.

The global financial crisis and oil price slowdown has brought to an end an economic boom in the world’s biggest oil-exporting region, with economists now forecasting a drastic drop in real GDP growth next year.