U.S. Secretary of State Hillary Clinton lauded Wednesday the Arab Peace Initiative for Israel and the Palestinians, saying its principles are now "more important than ever," the French news agency AFP reported.

The 2002 deal offers normalized Arab-Israeli ties in exchange for Israeli withdrawal from occupied territories and the creation of an independent Palestinian state.

Clinton sent a message to Saudi King Abdullah to mark the Saudi national day on Thursday, and applauded Abdullah's backing of the initiative, calling it a "far-sighted vision for comprehensive regional peace."

"As we continue working to support direct talks between the Israelis and the Palestinians, the principles enshrined in the Arab Peace Initiative are more important than ever."

King Abdullah has backed the resumption of peace talks between Israel and the Palestinian Authority launched earlier this month.

Meanwhile PA President Mahmoud Abbas has repeatedly threatened to walk away from talks, if Israel resumed building in its West Bank settlements after a 10-month moratorium expires on Sunday.