RIYADH - Lebanese Prime Minister Fouad Siniora thanked Saudi Arabia yesterday for its efforts to stop Israel’s recent war in Lebanon and financial help it has given for Lebanon’s post-war reconstruction.

"I wanted to express the appreciation and thanks of Lebanese over the kingdom and the king’s position during the difficult circumstances of Israel’s unjust attack on Lebanon," Siniora told reporters after talks with Saudi officials in Jeddah.

Saudi Arabia said in July it had placed $1bn in Lebanon’s central bank in an effort to prop up the Lebanese pound, and made a separate donation of $500mn to help rebuild the battered country.

The help put Saudi Arabia, the world’s biggest oil exporter, at the forefront of countries backing Lebanon, after the 34-day war between Israel and Hezbollah, which destroyed some $3.6bn in infrastructure.

Beirut has won pledges of billions of dollars in aid, mainly from oil producing Arab states.

Siniora did not give details of any other financial aid, but said he discussed with Saudi officials the economic consequences of Israel’s operation, and efforts to persuade Israel to withdraw from the Shebaa Farms area.

Diplomats in Riyadh say that at government level there is a tussle for post-war influence in Lebanon between Iran, which backs Hezbollah, and Arab states led by Saudi Arabia.

Saudi Arabia has played a central role in supporting the Lebanese economy since 1990 and made clear it wants to maintain that role, partly to challenge the influence Iran exerts through its funding of Hezbollah.

"Throughout the recent period, the kingdom has been at Lebanon’s side, giving it strength, offering all assistance, supporting it diplomatically and doing all it could to stop the attack and to lift (Israel’s) embargo," said Siniora, who is backed by Washington.

Saudi billionaire Saleh Kamel said on Saturday a group of Arab investors had launched a campaign to raise $2bn for reconstruction and aid. - Reuters