Saudi Arabia began a campaign yesterday to end the conflict in the Middle East, when King Abdullah revived his “land for peace” offer to Israel and urged other Arab leaders to join in.

After several years of failed peace initiatives, notably by the Bush Administration, the Saudi monarch told fellow leaders at the annual Arab summit in Riyadh that the region was more divided than at any time since the Arab League was formed more than 60 years ago. He proposed the relaunch of his 2002 proposal, which would commit the 22 Arab states to normalise relations with Israel if it, in turn, withdrew from all lands captured in the 1967 Six-Day War.

The proposed offer, expected to be agreed on when the summit ends today, would also call for the establishment of a Palestinian state with Jerusalem as its capital. On the contentious issue of the fate of Palestinian refugees, the plan calls for a “just solution”.

Five years ago Israel rejected the package as unacceptable, because its regards Jerusalem as its capital and is opposed to the return of Palestinian refugees. Ehud Olmert, the Israeli Prime Minister, has recently softened his opposition.

“This initiative simply says to Israel, ‘Leave the occupied territories and you will live in a sea of peace that begins in Nouakchott [Mauritania] and ends in Indonesia’,” Mahmoud Abbas, the Palestinian leader, said.

“If this initiative is destroyed I do not think there will be another opportunity in the future like this.”

Traditionally, the oil-rich Saudi kingdom has avoided taking centre stage in resolving the regional crises. But in the absence of any serious US effort, and amid fears that Islamic militants backed by Iran are filling the political vacuum, King Abdullah has seized the initiative recently. “[If the Arab world recovers], the winds of hope will blow on the nation, and then we will not allow forces from outside to determine the future of the region and only the flag of Arabism will be raised on Arab soil,” he said, in a clear dig at the US occupation of Iraq.

Last month the Saudis mediated the creation of a Palestinian national unity government, heading off what many feared could become a civil war between the rival Hamas and Fatah factions. The Saudis, who have not hosted an Arab League summit for more than 30 years, then offered to convene the current conference. The initiative could open the way to real dialogue for the first time since 2000.

UN officials are trying to plot the next step by convening a meeting next month in Egypt of the Quartet — America, the European Union, Russia and the UN — which coordinates Arab-Israeli peace efforts. This time other countries, such as Egypt, Jordan, Saudi Arabia and the United Arab Emirates, would be invited to attend.

The next move would be to engage directly with Israel and the Palestinians, whose leaders this week agreed to hold fortnighty meetings.

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