The Saudi Ministry of Foreign Affairs, announced that the kingdom would grant the Palestinian Authority (PA) $100 million in budgetary support.
"This royal approval came as a response to the diplomatic success achieved by the Palestinian Authority in obtaining an Observer Status in the United Nations General Assembly," Ahmed Kattan, Ambassador of Saudi Arabia in Cairo, said in a Thursday press statement.
Kattan explained that Saudi Arabia will support the PA financially to help the Palestinians meet the consequent financial obligations in the upcoming period and also to help ease the government's financial crisis.
The statement indicated that the Kingdom will offer the PA further grants in the future and that it would increase its' regular contribution from $14 million to $20 million.
Recently, during an "economic summit" in the capital Riyadh, Arab leaders including President Mohamed Morsi called on all Arab countries to provide the necessary financial support for the Palestinian government to meet the demands of its people.
Arab leader also urged the donor countries and the international community to take serious steps to bring about an end to the suffering of the Palestinian people.