Riyadh - Saudi Arabia's King Abdullah, speaking at an Arab economic summit in Kuwait Monday, urged Israel to accept a six-year-old, comprehensive Arab-Israeli peace plan, saying it "will not remain on the table forever."

The plan promises normalisation of Arab relations with Israel in exchange for Israeli withdrawal from territories it has occupied since the 1967 Arab-Israeli war, the establishment of an independent Palestinian state with East Jerusalem as its capital, and a "just settlement" of the Palestinian refugee question.

"Israel must realise that the choice between war and peace is not open-ended, and a peace proposal will not remain on the table forever," King Abdullah said.

Saying "a drop of Palestinian blood is more precious than all the treasures of the world," King Abdullah promised 1 billion dollars in aid for Gaza.

Kuwait promised another 500 million dollars. The rest of the Arab countries are expected to commit to a total of another 500 million dollars in reconstruction funds and humanitarian aid at the summit.

"I announce an end to the discord between all the Arab brothers, without any exception," King Abdullah said, in an apparent reference to the dispute between Arab states about the appropriate diplomatic response to the conflict in Gaza.

Egypt, Jordan, and Saudi Arabia did not attend a meeting of Arab League member states in Qatar on Friday.

Speaking at that meeting, Syrian President Bashar al-Assad said the Arab peace plan was "already dead," and called on all Arab countries to suspend diplomatic relations with Israel.

Speaking at a parallel meeting of Arab foreign ministers in Kuwait last Friday, Arab League Secretary-General Amr Moussa lamented that "the boat is sinking," and admitted that he was "very frustrated about the stance of Arab countries."

King Abdullah first presented the Arab peace plan at a 2002 summit in Beirut that only 10 of the 22 Arab leaders invited attended. At a subsequent summit in Riyadh in 2007, every Arab state except Libya endorsed King Abdullah's proposal. While Palestinian President Mahmoud Abbas endorsed the plan, Hamas leader Ismail Haniya abstained from the vote. (dpa)