An agreement has been reached between the Saudi Arabian authorities and Irish universities for the provision of third-level places worth €20 million for Saudi students.

The agreement with the King Abdullah Scholarship Foundation follows negotiations led by the Minister for Education Mary Hanafin in Riyadh as part of the Enterprise Ireland trade mission to Saudi led by Taoiseach Bertie Ahern.

The kingdom plans to support several thousand Saudi students who will attend universities outside Saudi Arabia in the coming years as part of its plans to develop its economy and its society generally.

The focus of the move will be towards education in science, technology and healthcare.

Approximately 1,000 Saudi students are expected to attend Irish universities over the coming three years.

The announcement was made by Bertie Ahern at a business breakfast in Riyadh attended by more than a hundred Irish business people and their Saudi partners and contacts. Asked about the value of contracts signed during the trade mission, Mr Ahern told Saudi and Irish journalists that he did not see the purpose of the visit as being primarily about deals, but rather about "building a relationship with the kingdom. We want to build long-term stable relationships."

He said Segia, the Saudi equivalent of IDA Ireland, had indicated a desire to set up an office in Dublin. A Saudi embassy in Dublin was also at an advanced stage. Ireland and Saudi have agreed to renew and strengthen the joint commission between the two countries, which provides a structure for contacts and the exchange of information between governments and state agencies on both sides.