The head of the World Trade Organisation, Supachai Panitchpakdi, has urged Arab countries to engage more actively in trade talks.

Speaking during a visit to Egypt, the trade chief said liberalisation would help Arab countries spur growth, attract foreign investment and tackle rising unemployment.

He also promised to revive stalled negotiations over Saudi Arabia's bid to join the WTO.

"As for Saudi Arabia's accession dossier, it has gone for seven or eight years, and in the last few years it has been dormant," he said.

Talks stalled after Saudi Arabia proved reluctant to open up its oil, telecoms and banking sector to foreign competition.

"I'll try to revive the process," he promised.

Chinese benefits

Six Arab nations - Algeria, Lebanon, Libya, Saudi Arabia, Sudan and Syria - have asked to join the trade organisation.

And negotiations are moving in the right direction with Algeria and Lebanon, according to Mr Panitchpakdi.

Many of the oil-dependent Arab nations have suffered stagnant economic growth in the past decade.

And they attracted just 2.9% of the $204bn of foreign direct investment channelled into developing countries in 2001, according to UN statistics.

Mr Panitchpakdi cited the example of China - which has received a massive influx of foreign investment since it became a member of the WTO at the end of 2001.