JEDDAH, 6 March 2007 — Saudi Arabia is optimistic that the March 28-29 Arab summit in Riyadh will adopt effective resolutions on major issues such as Palestine and Iraq and open a new era of progress, reform and economic cooperation in the Arab world.

The Council of Ministers, chaired by Custodian of the Two Holy Mosques King Abdullah, also emphasized the Kingdom’s resolve to strengthen Islamic unity and solidarity, promote understanding among religious schools of thought (madhab) and establish closer relations among Muslim communities.

Saudi Arabia has stepped up preparations for the Riyadh summit in order to make the two-day event a success. King Abdullah has sent envoys to countries, including Syria and Libya, to invite their leaders to the conference. The Kingdom is likely to press for a radical solution to the protracted Arab-Israeli conflict at the summit.

“We hope Palestine will be represented at the summit by a strong unity government,” the Saudi Press Agency reported, quoting a Cabinet statement. “It is important that the summit take effective resolutions, backing Palestinian unity, removing the economic siege that has been imposed on them and forcing Israel to respect UN resolutions,” the Cabinet said.

Spelling out the Kingdom’s foreign policy, King Abdullah said Riyadh would establish bridges of understanding and cooperation with all peace-loving countries and all forces and movements that support the peaceful coexistence of cultures and civilizations.

King Abdullah earlier briefed the ministers on the outcome of his talks with President Mahmoud Ahmadinejad of Iran, Egyptian President Hosni Mubarak and Jordan’s King Abdallah. “Saudi Arabia’s foreign policy is based on four solid principles: Establishing strong inter-Arab relations and reinforcing Arab identity, irrespective of racial, religious and madhabi differences; strengthening Islamic unity and solidarity and promoting understanding between madhabs; building bridges of understanding with all peace-loving countries; working for the success of Arab and Islamic causes and contributing to world stability and prosperity,” the king said.

Culture and Information Minister Iyad Madani said the Cabinet meeting made a number of important decisions. It approved the establishment of the Saudi Export Development Authority as well as the National Program for the Development of Industrial Complexes and endorsed the security cooperation agreement with China.

Petroleum and Mineral Resources Minister Ali Al-Naimi and Commerce and Industry Minister Hashim Yamani said the setting up of the two bodies would boost industrial investment in the Kingdom. They said the program was decided upon after studying the experiments of other countries in the field.

They said the new industrial complexes would focus on manufacturing cars, building materials, household utensils and packaging materials, adding that the complexes would be developed with private sector support inside and outside the Kingdom.

The Export Development Authority will have a board of directors chaired by the minister of commerce and industry. It will set out nonoil export development policies and work for improving the export environment by providing incentives to exporters.

It will also support national companies in carrying out joint investment projects with foreign firms and linking investment to exports.