The Gulf Co-operation Council (GCC), will this year resolve outstanding issues to clear a path toward creating a customs union, its secretary general said on Saturday.

'Pending issues need to be resolved to reach a final deal on the customs union ... in line with an agreed timetable in 2011,' said Abdulrahman al-Attiyah, GCC secretary general of the economic and political bloc of Gulf Arab states.

The introduction of a customs union in 2003 had been hailed by officials as a major achievement countering critics' claims that the Gulf Arab bloc would be unable to realise economic integration in the world's biggest oil exporting region.

But differences have delayed an agreement on how to introduce a permanent system to distribute custom receipts among six members of the GCC.

'The current requirements are (those of) a joint effort to address some challenges and mutual concessions (to be made) if a customs union deal is to be finalized,' he said at GCC meeting in Riyadh.

United Arab Emirates' Minister of State for Financial Affairs, Obaid Humaid al-Tayer told reporters that the member-states have discussed a mechanism to distribute custom receipts but have not agreed on custom rates.

'A programme will be put in place in 2011 and another meeting will be held in April to discuss the same issue,' al-Tayer said.

A Bahraini government spokesman said on Friday Gulf oil producers are discussing a fund to aid Bahrain and Oman, both of which have faced anti-government protests.

When asked about helping Oman and Bahrain, al-Tayer said: 'This is an extraordinary meeting dedicated to discuss the customs union, this meeting is for the customs union.'-Reuters