Arabs pledge economic unity, no Gaza consensus

Arab leaders meeting in Kuwait approved a declaration Tuesday calling for steps to accelerate the economic integration of Arab states, but their foreign ministers failed to reach a consensus on a final statement on Israel's war on Gaza.

"We held a closed-door session to discuss the final statement on Gaza ... We have not reached a conclusion because of time constraints and some positions," Iraqi Foreign Minister Hoshyar Zebari told Kuwait Television, without giving details.

The ministers were still trying to save the day and a press conference was pushed back for two hours to give more room for consultations, reported AlArabiya TV.

Earlier, the Arab leaders have agreed on steps aimed at confronting the fallout of the global financial crisis.

The leaders also approved a number of economic resolutions, including launching an Arab customs union in 2010, a pan-Arab power grid and a rail network project.

The Kuwait Declaration called for "adopting monetary and fiscal policies to enable Arab nations to face the consequences of the global financial crisis."

Arab countries have incurred losses of 2.5 trillion dollars due to the financial and economic turmoil, Kuwait's Foreign Minister Sheikh Mohammad al-Sabah said last week.

The leaders also announced the establishment of the Arab Development Fund with capital of two billion dollars to provide loans and assistance for Arab joint projects.

The declaration urged "necessary steps to uplift the living standards of Arab citizens and to give priority to promoting inter-Arab investments."

The Arab League, comprising 22 member states, estimates Arab capital invested at home is less than 20 percent of funds invested by Arab nations and businessmen in the United States and Europe.