Saudi King Fahd dies

Saudi Arabia, a strategic US ally, proclaimed Crown Prince Abdullah its new monarch to succeed King Fahd who died yesterday after steering the world's largest oil exporter through 23 turbulent years.

Saudi officials say King Abdullah, who is at least 80 and has run day-to-day affairs since his half-brother Fahd suffered a stroke in 1995, will maintain the kingdom's oil policy and close alliance with the West.

Political analysts say King Abdullah's toughest challenges will be to implement political reforms and keep up the fight against Osama bin Laden's al Qaeda network, which has waged a violent two-year campaign aimed at toppling the Saudi royal family.

"I cannot imagine there will be any particular change in that (foreign) policy undertaken by the late King Fahd," said Prince Turki al-Faisal, outgoing ambassador to Britain and the kingdom's next envoy to the United States.

Asked whether the same applied to the kingdom's oil policy, Prince Turki said: "Absolutely."

King Fahd, aged about 83, had been in hospital since May 27, when he was admitted with acute pneumonia.

He ascended the throne in June 1982, at the height of the Saudi petrodollar boom, with a reputation as an administrator and international diplomat.

The same year, an Arab League summit adopted a peace plan for the Middle East that he had drawn up while he was crown prince. The plan was revived in 2002 as an offer of peace with Israel in exchange for the return of occupied Arab lands.

During his reign, King Fahd tried to strengthen his own Islamic legitimacy. In 1986, he assumed the title of Khadim al-Haramain al-Sharifain (Custodian of the Two Holy Mosques) as a sign of his protection of the sacred Muslim sites in Mecca and Medina.

His strong ties with Washington and decision to allow US forces to deploy in Islam's birthplace in 1990 enraged Saudi-born bin Laden. The troops remained there until the 2003 invasion of Iraq.

Bin Laden has vowed to depose the Saudi royals, whom he has blasted as US "agents and stooges".

US crude oil jumped after King Fahd's death but Saudi officials said the kingdom would stand by its long-standing policy aimed at pumping enough oil to satisfy markets and stabilise prices.

Riyadh's commitment to continuity was further strengthened by King Abdullah's decree to retain all Cabinet ministers.

Energy and financial analysts predicted that King Fahd's death would have no major impact on the Saudi economy, now booming on strong oil prices. The stock market, the largest Arab bourse, briefly suspended trading but rebounded after early declines.

President George W. Bush said the "close partnership" between the United States and Saudi Arabia would continue.

"We wish Saudi Arabia peace and prosperity under his leadership," Mr Bush said, referring to King Abdullah as "my friend".

US officials said King Fahd's death would have little effect on relations because King Abdullah was de facto ruler for years and has close ties to Mr Bush and his family. Bilateral ties had been strained by the September 11 attacks mostly carried out by Saudis.

Saudi Information Minister Iyad bin Amin Madani announced Fahd's death on state television, saying the royal family had acknowledged King Abdullah as the new sovereign and accepted his choice of Prince Sultan as crown prince.

Prince Sultan, like King Abdullah, was born in 1924. A Saudi official said King Fahd's funeral would take place today, but there would be no mourning period, in line with strict Wahhabi Muslim tradition that unquestioningly accepts God's will. Saudi flags, emblazoned with "There is no God but Allah", will not be lowered as Wahhabis deem this blasphemous.

Saudis are to pledge allegiance to the new king and his crown prince tomorrow. The kingdom's top cleric, Grand Mufti Sheikh Abdulaziz al-Sheikh, urged Saudis to do so.

"We call on Muslims to pledge allegiance to them and to gather around them in support. This pledge of allegiance is legitimate under sharia (Islamic law)," the cleric said.

King Abdullah is expected to pick a deputy crown prince, with Interior Minister Prince Nayef, 72, or Riyadh provincial governor Prince Salman, 69, among front-runners.

Condolences flooded in from around the world. French President Jacques Chirac said King Fahd had "guaranteed the integrity of his country and defended regional stability". British Prime Minister Tony Blair hailed his "great vision and leadership".

Several countries announced periods of mourning and flew flags at half-mast. An Arab League official said an Arab summit in Egypt, set for tomorrow, would be deferred for up to a week.

In Saudi Arabia, recitations of the Koran echoed from mosques, radios and television sets but shops and businesses remained open as Saudis accepted King Fahd's long-expected death.

"This is a very sad day. But I think the people were ready for this to happen as he was very ill for a long time," said Mohammad al-Aqeel, a 31-year-old Saudi engineer.

King Abdullah, the fifth son of Saudi Arabia's founder King Abdul-Aziz to ascend the throne, is a cautious reformer who has overseen modest economic and political liberalisation.