Speaking to reporters here after attending a meeting of the Arab Economic and Social Council, he said the Saudi contribution accounted for 40 percent of the amount deposited in the fund's account.
The fund is aimed at revamping faltering economies in the region amid fears of protests over high unemployment, rising prices and rampant corruption.
The pledge was made in a document to be adopted by the economic summit opening on Wednesday in the Egyptian Red Sea resort. This is "a commitment to provide job opportunities for Arab young people to empower them to participate fully in their societies," stated the document labeled as the summit's final communiqué.
Arab diplomats said Kuwait also promised to pay $500 million to the fund while the remainder will come from 11 other member states.
Thamer Al-Anni, an Arab League official, said a special fund will be set up within weeks to operate as a bank that provides short and medium term loans to young Arabs who want to start their own small enterprises.
"This will be for business with a small capital around $20,000-$50,000," he said. He said priority will be given to less developed countries such as Djibouti, Sudan and Yemen.
Al-Assaf said the Kingdom has established an investment company to carry out agricultural projects abroad including Arab countries. He hoped that countries received agricultural investments would enact necessary regulations to protect them.
He said the council had a taken a number of resolutions related to establishing a railway linking Arab countries. “We have also discussed plans to establish an electricity power grid linking Arab League countries,” the minister said.
