Saudi Arabia and Qatar signed a landmark agreement on Saturday to demarcate their border. Interior Minister Prince Naif and Qatari Prime Minister Sheikh Hamad ibn Jassim Al-Thani signed the accord in Jeddah, the Saudi Press Agency said.

The two GCC neighbors also decided to set up a joint council to strengthen their relations in political, security, financial, economic, commercial, investment, cultural, media and other areas, the agency said.

The accord follows the historic visit of Crown Prince Sultan to Doha last March that took Saudi-Qatari relations to new heights. It also came as a result of Sheikh Hamad’s talks with Prince Sultan and Prince Naif, SPA said.

An official statement issued on the occasion said the new Joint Coordination Council, to be co-chaired by Prince Sultan and his Qatari counterpart Sheikh Tamim ibn Hamad Al-Thani, would include Prince Naif, Foreign Minister Prince Saud Al-Faisal and State Minister Musaed Al-Aiban in addition to the ministers of finance, culture and information, and commerce and industry.

Separately, a joint statement said the council would increase political coordination and cooperation on all issues of mutual concern. It would also promote cooperation in energy, industry, communication, transportation, civil aviation and joint investment.

“Development of military and security cooperation is another major objective of the council,” the statement said, adding that it would also activate the role of private sector in boosting economic development.

Abdul Rahman Al-Attiyah, secretary-general of the Gulf Cooperation Council (GCC), commended the Saudi-Qatari accord and said it would strengthen the “brotherly relations” between the two countries.

“The two steps — the agreement on demarcation of borders and setting up of a joint council — will take Saudi-Qatari relations to their highest level,” he said, adding that the accord would also contribute to bolstering the GCC.

The Qatar and Saudi Arabia border demarcation enagegment as completed was hailed as an effort to establish a joint co-ordination council having finally reached an agreement on late in the weakend.

Like their countries they represent, Qatar’s H E Sheikh Hamad bin Jassem bin Jabor Al Thani and Saudi Interior Minister Prince Nayef bin Abdulaziz were not unkown for their diferences. However, their co-ordination council to be co-chaired by Qatar's Heir Apparent H H Sheikh Tamim bin Hamad Al Thani and Saudi's Crown Prince Sultan bin Abdulaziz is seen as a possible new beggining in an increasingly hostile neighbourhood.

That may well be a fruitful effrts from the two most hostile nations in the Gul, especially that the council, which will meet annually, is designed to place general co-operation and co-ordination policies on all political issues of mutual concern, as well as diplomatic and consular relations, while strengthening security co-operation and the exchange of information in this area.

The council stands a good chance of achieving its aims and serve to boost the fraigile co-operation between Doha and Riyadh in the financial, economic, commercial, industrial, communication, and civil aviation sectors, and encourage joint ventures and investments, as well as the exchange of technical expertise and training.