MADRID, 20 June 2007 — Saudi Arabia and Spain yesterday announced their plan to set up a $5 billion investment fund to finance massive infrastructure projects in both countries. The announcement was made at a ceremony attended by Custodian of the Two Holy Mosques King Abdullah and King Juan Carlos of Spain.
Finance Minister Ibrahim Al-Assaf expressed his confidence that the fund, which would be totally financed by the private sector, would strengthen economic relations between the two countries. At present there are 21 Saudi-Spanish joint projects, he said. “Many Spanish companies have expressed their desire to participate in a number of major projects in the Kingdom, especially in the railway sector,” the Saudi minister said. There has been substantial growth in trade between the two countries, he added.
King Abdullah arrived here Monday on the first leg of a five-nation tour, which will also take him to France, Poland, Egypt and Jordan. This is the king’s first European tour since ascending the throne in 2005.
Abdullah’s Spanish trip began with a gala banquet at the royal palace with King Juan Carlos and Queen Sofia as well as other members of the Spanish government. Addressing the banquet, the Saudi leader called upon the world community to find a quick solution to the protracted Arab-Israeli conflict before it is too late. He also predicted a bright future for Saudi-Spanish ties.
“The Middle East suffers from many tragedies. Apart from bloody and criminal terrorism, the region is on the brink of civil wars. The Arab-Israeli conflict has taken explosive dimensions. All these challenges demand from the international community and big powers quick movement to defuse (the explosive) situation before missing the chance and losing control,” the king told the gathering.
King Abdullah thanked Juan Carlos for giving him and his delegation a warm welcome. “We appreciate your initiative in setting up the Arab House, an international institute for Arabic and Islamic studies, and we look forward to the institute contributing to establishing dialogue between civilizations, removing misunderstandings between them and strengthening cooperation and friendship,” he told the Spanish king.
Abdullah praised Spain for its support for the legitimate rights of the Palestinians. “History will note that the first serious and combined effort to start the peace process is named after the Spanish capital Madrid,” he said. Spain can play a leading role in the peace process, he added.
In his speech, Juan Carlos recalled that the two countries have been forced to deal with the scourge of terrorism and both firmly condemn it. He went on to reject any attempt to distort religion and culture by those who want to sow hate and division.
“This is the first visit of a Saudi king to our country in 26 years and the royal visit reflects the strong relations between the two countries,” the Spanish king said. “History bears witness to the Arab and Muslim presence in Spain and this presence has enriched our culture and created a special relation between us,” he added.
He emphasized that Spain wants to increase and consolidate its relations with the Arab and Muslim world and the recent inauguration of the Arab House, a state-financed body, is proof of that.
King Abdullah also held talks with Spanish Prime Minister Jose Luis Rodriguez Zapatero. Foreign Minister Prince Saud Al-Faisal attended the meeting. Speaking to reporters after the talks, Saud called on warring Palestinian groups Hamas and Fatah to recommit to their Makkah accord. He was referring to the accord reached between the two groups in February that led to the creation of a Palestinian unity government.
The prince said the Arab League is firmly behind moderate Palestinian President Mahmoud Abbas, and that Saudi Arabia had warned that the coalition would remain fragile unless Western aid to the Palestinians resumed.
The minister said the Palestinians could not have Gaza run by one faction and the West Bank by another. “There should be no separation between the Palestinian areas,” he added.
King Abdullah yesterday met the Mayor of Madrid Alberto Ruiz Gallardon, who underscored the historical and deep-rooted relations between Saudi Arabia and Spain.
Gallardon said Spain had had the honor of receiving three Saudi kings in the past: Faisal, Khaled and Fahd. “Madrid, being a city established by Arabs, is rooted in Spanish Islamic culture,” the mayor said.
King Abdullah commended the tremendous progress achieved by Madrid over the past years and its desire to embrace the values of peace, tolerance and friendship.
“Smart cities like intelligent men learn lessons from history and its experiences. Madrid has learned from its experience of war how to love peace, from the experience of hate how to embrace love, from the experience of hardship how to achieve prosperity. And today we see its results with its advanced industries, flourishing trade and its science, literature and museums.” Later King Abdullah received the golden key of Madrid from Gallardon.
Abdullah’s itinerary includes a meeting with a group of Spanish businessmen. Infrastructure, building and services are the sectors in which Spanish firms have the most extensive business interests in Saudi Arabia.
Abdullah’s next stop is France where he will meet President Nicolas Sarkozy tomorrow to reinforce the strategic relationship between the two countries. An official statement issued by Sarkozy’s office commended Saudi Arabia’s stabilizing and moderating role in the Arab world.
