Abstract: The 2010 GCC currency union is fast approaching and far from being simply a symbol of GCC political union it will have serious economic repercussions for the region. The currency union has the potential to increase intra-GCC trade substantially, boost the region's financial markets and attract significant investment flows. However, establishing a successful currency union requires a number of necessary preparations that must be taken sooner rather than later. This paper discusses the preparations that must be made by the GCC states in order to make the smooth transition to currency union. It also examines the post-currency union policy choices that will have a significant bearing on the future prospects and strength of the single currency.