Saudi Arabia donates $200 mln to Palestinians

Saudi Arabia will donate $200 million to the Palestinian Authority (PA), Palestinian news agency Maan reported on Tuesday. "The Saudi king, Abdullah bin Abdul-Aziz Al Saud, issued orders to the finance minister to transfer $200 million to the PA," Maan quoted Palestinian Prime Minister Salam Fayyad as saying after a meeting of PA donors in New York. The Saudi move comes at a crucial moment as Palestinian President Mahmoud Abbas is expected to address the UN General Assembly on Friday with a formal call for Palestinian statehood.While most UN members support the bid, approval by the General Assembly would only give the Palestinians non-member state status. For full recognition, the bid would have to be approved by the UN Security Council - and the United States has said it will use its veto to block it.Washington, which insists on the resolution of the Middle East crisis through direct talks between Israel and Palestinians, could also cut its $500 million annual contribution to the Palestinian cause.The PA heavily relies on foreign aid, which accounts for about half of its $3.7-billion annual budget. Main PA donors include the European Union, the United States, Japan and Arab countries.