Spain and Saudi Arabia create infrastructure fund

Jun 19, 2007, 14:31 GMT

Madrid - Spain's King Juan Carlos and Saudi Arabia's King Abdullah bin Abdul Aziz al-Saud on Tuesday presented a joint fund for investments in infrastructure and energy, valued at an estimated 5 billion dollars (4.2 billion euros).

The monarchs presented the fund on the second day of Abdullah's three-day visit to Spain.

The fund will consist entirely of private capital, most of which was to come from Saudi Arabia.

It will finance joint development projects in infrastructure, energy, new technologies, the defence industry and tourism mainly in Saudi Arabia, the Middle East and North Africa, media reported.

The fund is aimed at upgrading bilateral economic relations, which consist mainly of Spanish oil imports, analysts said.

Abdullah and Juan Carlos also visited Madrid city hall, where mayor Alberto Ruiz-Gallardon handed the Saudi monarch the golden keys to the Spanish capital.

Madrid was founded by Arabs, and its name is of Arab origin, the mayor pointed out. King Abdullah also stressed the historic links between the Arab world and Spain, parts of which were ruled by Muslim Moors for nearly eight centuries until 1492.

On Monday, Abdullah attended a gala dinner hosted by King Juan Carlos and Queen Sofia. He was awarded the Order of the Golden Fleece, the highest Spanish distinction, which has been granted to less than 20 people.

The daily El Mundo and the far-left-environmentalist party coalition IU-ICV criticized the tribute. IU-ICV spokesman Joan Herrera called it 'an insult to democrats,' saying Saudi Arabia did not 'respect basic human rights, including those of women.'

Abdullah's visit was his first to Spain since he acceded to the throne in 2005, and the first by a Saudi monarch in 25 years. It followed a 2006 visit to Saudi Arabia by the Spanish royal couple, who are close friends with the Saudi royal family.