ARAB ECONOMIC SUMMIT: GAZA HIGH ON AGENDA

KUWAIT CITY, Jan 19 (Bernama) -- Arab leaders began an unprecedented summit
in this vibrant seaside capital Monday aimed at heralding a new era in Arab
economic cooperation.

Although planned to be non-political, the Israeli aggression on Gaza has
pushed the issue high on the agenda, with the leaders set to address the
situation on the first of their two-day talks.

They will look at proposals for a multi-billion dollar fund to help
reconstruct the battered coastal enclave, which has been devastated by the
three-week Israeli onslaught.

Israel declared a unilateral ceasefire Sunday followed later by Hamas, which
gave the regime a week to pull out its troops from the impoverished strip.

More than 1,300 Palestinians were killed and some 4,000 residential
buildings were reduced to rubble after Israel launched the attacks on Dec 27.

Saying Gaza "lies within our hearts", Kuwaiti Information Minister Sheikh
Sabah Al-Khalid Al-Sabah said the leaders would assess the extent of damage in
Gaza to help in its reconstruction which could cost about US$2 billion.

All 22 Arab League countries are attending the summit which took Kuwait a
year to prepare, he told a media conference.

Palestine is represented by President Mahmoud Abbas while the United Nations
Secretary-General Ban Ki-Moon, who is on a tour of the region to deal with the
Israeli aggression on Gaza, is also present.

Arab League Secretary General Amr Moussa, who had earlier voiced concern of
the Arab world's "deep political split" on Gaza, is here too, hoping that the
summit would unite the Arabs.

The summit, chaired by the Amir of Kuwait, Sheikh Sabah Al-Ahmad Al-Sabah,
is taking place amid concerns of the global financial crisis which has hit the
Arab world hard.

Arab League officials estimate that Arab countries' losses from the crisis
is US$2.5 trillion so far.

The value of Arab investments overseas, estimated at close to US$2.5
trillion, dropped by around 40 percent.

Arab stock markets last year shed around US$600 billion of their
capitalisation.

Also on the agenda are 10 major proposals aimed at boosting Arab economic
cooperation and integration and bridging the wide gap between the rich and poor
Arab nations.

They include a pan-Arab power grid, a pan-Arab rail network, setting up an
Arab customs union, besides the other pressing issues of poverty, unemployment
and Arab food security, and development of the health and education sectors.

Kuwait's Finance Minister Mustafa Al-Shamali said around 425 projects have
been studied and selected to be reviewed at the summit and then offered for
private sector investors to carry out.

Officials said inter-Arab trade and investment remain very small, parity
between the "haves" and the "have-nots" has only widened.

Most joint Arab economic projects are reported to have been either
"stillborn" or short of expectations.

Al-Khalid said the 22 Arab countries could achieve economic integration if
they were willing to pool their resources, citing Europe as example.

He said Kuwait had put aside bitter times with Iraq and start relationship
with the neighbouring country which had invaded it in 1990.

"The flourishing of Iraqi economy is beneficial to us," he said.

The 22 Arab nations have a total population of around 330 million, 61
percent of them in the working age group of 15 to 65 years.
-- BERNAMA