Saudi king unveils $37bn in benefits

King Abdullah returned home to Saudi Arabia today after a three-month medical absence and unveiled benefits for citizens worth…

King Abdullah returned home to Saudi Arabia today after a three-month medical absence and unveiled benefits for citizens worth about $37 billion in an apparent bid to insulate his regime from an Arab protest wave.

The king, who had been convalescing in Morocco after back surgery in New York in November, stood as he descended from the plane in a special lift. He then took to a wheelchair.

Hundreds of men in white robes performed a traditional Bedouin sword dance on carpets laid out at Riyadh airport for the return of the monarch, thought to be 87.

King Abdullah left his ailing octogenarian half-brother, Crown Prince Sultan, in charge during his absence.

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Before he arrived, state media announced an action plan to help lower- and middle-income people among the 18 million Saudi nationals. It includes pay rises to offset inflation, unemployment benefits and affordable family housing.

Saudi Arabia has so far escaped popular protests against poverty, corruption and oppression that have raged across the Arab world, toppling entrenched leaders in Egypt and Tunisia and even spreading to Bahrain, linked to the kingdom by a causeway.

The king announced no political reforms such as municipal council polls demanded by opposition groups. Saudi Arabia has no elected parliament or parties and allows little public dissent.

Significantly, Bahrain's King Hamad bin Isa was among the princes thronging the tarmac when King Abdullah flew in.

King Hamad freed about 250 political prisoners today and has offered dialogue with protesters, mostly from Bahrain's Shia majority, who demand more say in the Sunni-ruled island.

Riyadh would be worried if unrest in Bahrain, where seven people were killed and hundreds wounded last week, spread to its own disgruntled Shia minority in the oil-rich east.

Hundreds of people have backed a Facebook call for a Saudi "day of rage" on March 11th to demand an elected ruler, greater freedom for women and the release of political prisoners.

Saudi analysts said the king might soon reshuffle his cabinet to inject fresh blood and revive stalled reforms.

Saudi stability is of global concern. A key US ally, it holds more than a fifth of world oil reserves.