The Palestinian Authority announced a three-day mourning period in memory of Saudi Arabia's King Fahd, who died early yesterday.

The official WAFA news agency announced the mourning period and said flags were lowered to half-staff on all PA institutions. Palestinian television and radio stations broadcast excerpts of the Koran as part of the mourning.

PA Prime Minister Ahmed Qureia described the king's death as a great loss and offered condolences to the Saudi nation.

Saudi Arabia, the richest country in the Arab world, was the first to open its doors to Palestinian workers decades ago, and is the largest donor to the PLO and the PA.

PA leader Mahmoud Abbas was to lead a delegation to the king's funeral, Abbas' office said.

King Fahd had strong relations with Yasser Arafat during Israel's war in Lebanon in the 1980s. Saudi Arabia cut funding to the Palestinians during the Gulf War in 1991 when the Palestinian leadership sided with Iraq.

In recent years, ties have improved. During the recent intifada, the Saudis were the only Arab country to fulfill its pledges for budget assistance to the Palestinians.