RIYADH, 29 January — Saudi Arabia's Council of Ministers yesterday authorized Interior Minister Prince Naif to sign a security agreement with Iran, according to Information Minister Dr. Fuad Al-Farsi. The Cabinet meeting was chaired by Custodian of the Two Holy Mosques King Fahd.

Prince Naif had stated earlier that he would soon visit Tehran to sign the landmark accord which is expected to cover fighting crimes, terrorism, drug trafficking, money laundering, monitoring of borders and regional waters and extradition.

Speaking to the official Saudi Press Agency, Al-Farsi said King Fahd briefed the ministers on the outcome of his talks with Egyptian President Hosni Mubarak in Riyadh on Saturday. The king underscored the strong relations between Saudi Arabia and Egypt.

"King Fahd also noted the desire of the two countries to exchange views on all issues concerning bilateral ties as well as the Ummah," Al-Farsi said, adding that the Saudi-Egyptian summit talks focused on the latest developments in the Middle East peace process.

The Cabinet meeting expressed its deep sorrow and condolences to the Indian president and people as well as to the bereaved families over the deaths and destruction caused by a devastating earthquake in the country's western Gujarat state.

King Fahd praised the private sector's role in establishing giant investment projects in the Kingdom. The Cabinet hoped that Saudi businessmen would establish more economic and development projects in the country using national capital funds. The meeting also approved the final accounts of the Saudi Fund for Development for 1998.

In another development, Prince Naif, who is now in Tunisia, urged Arab media persons and thinkers to extend their contributions to strengthen security and stability in the Arab world. He said the proposal to hold a joint meeting of Arab interior and information ministers was not aimed at putting restrictions on Arab media organizations.

Referring to Al-Quds intifada, Prince Naif denounced the Israeli attacks, atrocities and inhuman practices against the Palestinians and urged Arab countries to stand with the Palestinian freedom fighters. "We have to do everything possible to support them ... as they sacrifice their lives to restore Al-Aqsa Mosque and Palestine," he added.